Nonrecourse

Term referring to the absence of any legal claim against a seller or prior endorser. The seller (or the endorser of a check or other Negotiable Instrument) is not liable or otherwise responsible for payment to the holder. The absence of recourse is a key element in determining whether a sale of assets is actually a sale for tax and accounting purposes and a transfer of ownership from seller to buyer. See also Asset Sales; Endorsement.

No personal Liability. Lenders may take the property pledged as Collateral to satisfy a Debt but have no Recourse to other Assets of the borrower.
Example: purchases a property with a nonrecourse loan. Should Downing Default the lender may Foreclose and acquire the property but is barred from seeking a Judgment against other properties held by Downing.