nonrecourse debt


Debt for which the borrower is not personally liable. In the event of default, the lender has access to the collateral and nothing else.

Use nonrecourse debt in a sentence

You should always try and make sure that you pay off any nonrecourse debt before the time that it is owed.

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When a pawnbroker gives you a loan for your car, it is a nonrecourse debt because if you don't pay, the only think they can do is keep your car.

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After compiling a measure of the defaulted loan-holders personal finances and credit accounts, it became apparent that he/she met the requirements to invoke the nonrecourse debt clause; therefore, the institution would only collect the collateral listed in the original contract.

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nonrated nonrecourse expense