Definitions for "Nonrecourse Loan"
A loan obtained by a limited partnership in which the lender has a claim only against the partnership as a whole, not against the individual limited partners. For tax purposes, if the partnership invests in real estate, the limited partner may include its portion of the nonrecourse loan in its basis. See also: Basis.
Loan that the investor cannot force the lender to repurchase.
A loan taken by limited partners used to finance their portion of the partnership, which is secured by their ownership in the venture.