In the event a person defaults on a loan, recourse is the right of a person to receive payment. Recourse could give the lender the ability to take possession of the borrowers assets.
The right of a lender or holder of a note secured by a mortgage to look to the personal assets of the borrower or endorser for payment should, not just to the property.
Term describing a type of loan. If a loan is with recourse, the lender has a claim against the parent company in case of default
The right to seek repayment of debt. Usually used to describe the right to seek repayment from an originator or prior endorser who sold or assigned debt to another party.
The right of a lender to collect from the seller of an installment credit obligation, such as a car dealer, in the event that the loan defaults. With recourse deals, repossessed vehicles are usually delivered back to the selling dealer.
The right of the holder of a note to look personally to the borrower or endorser for payment. Must have been secured by a mortgage or deed of trust
a lease transaction supported by the vendor due to weak client credit.
Refers to the right, in an agreement, to demand payment from the person who is taking on an obligation. A full recourse loan refers to the right of the lender to take any assets of the borrower if repayment is not made. A limited recourse loan only allows the lender to take assets named in the loan agreement. A non-recourse loan limits the lender's rights to the particular asset being financed -- an approach that is common in home mortgages and other real estate loans.
A type of borrowing in which the borrower (lessee) is fully at-risk to the lender for repayment of the obligation. The recourse borrower (lessee) is required to make payments to the lender whether or not the lessee fulfills its obligation under the lease agreement.
The right of the holder of a note secured by a mortgage or deed of trust to look personally to the borrower or endorser for payment.
The right of a person or holder in due course to demand payment from anyone who endorsed an instrument if the original signer fails to pay.
the ability of a lender to claim money from a borrower in default, in addition to the property pledged as collateral.
A right claim against the guarantors of a loan or draft or bill of exchange.
The right to claim back a payment(s) made.
(a) The right of a holder in due course to demand payment from the maker or endorser of a negotiable instrument, or from prior endorsers, if the instrument is dishonored by the maker. (b) The acceptance, assumption or retention of some or all of the risk of loss associated with an asset owned by another party. (c) In the secondary mortgage market, recourse refers to a provision in a sales contract by which a mortgage seller agrees to buy back the loan if default and foreclosure occur. See with full recourse, without recourse, with partial recourse.
The right of a lender, in the event of a default by the borrower, to recover against the personal assets of a party who is secondarily liable for the debt (e.g. endorser or guarantor).
The right of a lender to pursue a borrower personally for moneys owed.
The right to call upon a borrower to personally meet an obligation. Recourse is sometimes called personal guarantee.
A loan for which the borrower is personally liable for payment is the borrower defaults.
The right to claim a refund from another party which has handled a bill at an earlier stage.
(or " vendor recourse"). Generally applies to the funding source (lessor's) right to require the manufacture or distributor take back and/or take responsibility for re-marketing equipment that is not paid for as a result of default by their customer(s), the lessee. Note: First Capital does not require recourse" agreements with its vendors.
Rights of a holder in due course of a financial instrument (such as a loan) to force the endorser on the instrument to meet his or her legal obligations for making good the payment of the instrument if dishonored by the maker or acceptor.
A vendor(s) financial obligation in the event of a default from the lessee. This is generally an ultimate net loss. However, in certain cases, there can be up to 100% monetary guarantee. In other cases, it can stipulate a time frame in addition to a monetary obligation. Lastly, re-marketing agreements are required from time to time if it is a specialty piece of equipment with an exclusive niche. These obligations are only enforced in the event of a default by their customer(s), the lessee. Please note that MAC Financial does not require recourse with its vendors.
A legal term denoting the right to institute a claim against a third party in the event another party should fail to meet an obligation.
Term describing a type of loan. If a loan is with recourse, the lender has a general claim against the parent company if the collateral is insufficient to repay the debt.
The right of the holder of a note secured by a mortgage or deed of trust to claim money from the borrower in default in addition to the property pledged as a collateral.
The right of a person, bank or Export credit agency to whom a note or other obligation has been endorsed, to demand payment from the endorser of the note, if the original borrower fails to pay. Français: Recours Español: Recurso, acción
The right to claim against a prior owner of a property or note.