Nonrecourse
Barron's Banking Dictionary:
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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.
Barron's Real Estate Dictionary:
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Nonrecourse
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.
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.
| Nonperforming Loan, Nonjudicialforeclosure | |
| Nonresidential, Normal Wear and Tear |
Barron's Law Dictionary:
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Nonrecourse
Without personal liability. An obligation that is nonrecourse does not provide a basis for federal taxation purposes for individuals or partnerships except in certain limited cases such as when real estate is involved. If a promisor has limited his exposure in the event of a default to a particular pledged asset such as his equity in a building or entity, his obligation will be regarded as nonrecourse.
Individuals often structure transactions in corporate form to achieve similar limited personal liability.
Individuals often structure transactions in corporate form to achieve similar limited personal liability.
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Copyrights:
Barron's Banking Dictionary
Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.
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Barron's Real Estate Dictionary
Dictionary of Real Estate Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved.
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