a loan where the borrower is personally liable if the property is sold for less than the amount owed to the lender
Loan for which the endorser or guarantor has a secondary liability in the case of a default by the borrower.
A loan in which commodities could be used as collateral but which would have to be repaid in cash rather than delivering the commodities which is permitted under a non-recourse loan.
A loan for which the borrower has personal liability.
A type of mortgage loan in which the lender's remedies in the event of borrower default are unlimited, extending beyond the property to the borrower's personal assets. In secondary marketing, loans that the lender must repurchase in the case of loan default or other defect.
A note or loan signed by a limited partner, for which the signer is personally responsible ("at risk"). Recourse loans are included in the partner's basis for tax purposes. See: Basis.
A debt instrument wherein the lender can legally require repayment of a loan from personal funds if the collateral is not sufficient to repay the note. As opposed to a Non-recourse Loan where the lender can only obtain compensation from the collateral or funds of the business.
Loan that gives the lender access to additional capital beyond the pledge collateral which secures the loan. If the borrower defaults on the loan, the lender may pursue other assets to recover their loan in full.
