What is a non-recourse guarantee?
Non-Recourse Guarantee means any Guarantee by the Company or a Guarantor of Non-Recourse Debt incurred by an Excluded Project Subsidiary as to which the lenders of such Non-Recourse Debt have acknowledged that they will not have any recourse to the stock or assets of the Company or any Guarantor, except to the limited …
What non-recourse means?
: being or based on an agreement in which the lender has no right of recourse to the borrower’s assets beyond stated limits a nonrecourse note a nonrecourse loan.
What is the difference between recourse and nonrecourse?
There are two types of debts: recourse and nonrecourse. A recourse debt holds the borrower personally liable. A nonrecourse debt (loan) does not allow the lender to pursue anything other than the collateral. For example, if a borrower defaults on a nonrecourse home loan, the bank can only foreclose on the home.
What is recourse guarantee?
Recourse Guaranty means any general recourse guarantee by the Borrower or any Subsidiary of Indebtedness pursuant to a Receivables Securitization, which guarantee is either unsecured or secured solely by a pledge of the Equity Interests of the Securitization Entity that is a party to such Receivables Securitization.
Is non-recourse the same as unsecured?
Nonrecourse debt vs. When you need to borrow money, you may have multiple loan types to choose from. With a secured debt, the loan is tied to an asset, or collateral, that lenders can seize if you default on the loan. Unsecured debts do not use property as collateral to back the loan.
What is a non-recourse state?
Non-Recourse: What does it mean? If your loan is non-recourse, it means that upon foreclosure the only thing that the home lender can recover from you is the property itself. The loan will be considered satisfied by the foreclosure sale, regardless of the price that the home fetches.
What does limited recourse mean?
Limited recourse debt is debt upon which a creditor can claim certain but not all assets of the borrower if the borrower defaults. Full recourse debt allows creditors to claim any assets of the borrower to fully cover the unpaid portion of a loan.
What is recourse and non-recourse factoring?
Recourse factoring is the most common and means that your company must buy back any invoices that the factoring company is unable to collect payment on. You are ultimately responsible for any non-payment. Non-recourse factoring means the factoring company assumes most of the risk of non-payment by your customers.
What means recourse?
Definition of recourse 1a : a turning to someone or something for help or protection settled the matter without recourse to law. b : a source of help or strength : resort had no recourse left. 2 : the right to demand payment from the maker or endorser of a negotiable instrument (such as a check)
What is LC discounting?
Discounting of Letter of Credit is a short-term credit facility provided by the bank to the beneficiary. Bank purchases the documents or bills of the Seller (beneficiary) after he fulfills certain compliances and provides the required documents to be dispatched to LC opening bank.
What is non-recourse LC?
Under “Without Recourse” letter of credit, the negotiating bank has no recourse to the exporter. But, if the confirming bank happens to be the negotiating bank, it cannot have recourse to the exporter. A confirmed letter of credit is without recourse to the beneficiary.
What does non recourse mean?
Definition of nonrecourse . : being or based on an agreement in which the lender has no right of recourse to the borrower’s assets beyond stated limits a nonrecourse note a nonrecourse loan.
What is non recourse debt?
Nonrecourse debt. Nonrecourse debt or a nonrecourse loan (sometimes hyphenated as non-recourse) is a secured loan (debt) that is secured by a pledge of collateral, typically real property, but for which the borrower is not personally liable.
What is a non – recourse clause?
A non-recourse clause in a mortgage limits the remedies a lender may seek when the borrower defaults, usually to taking possession of the house which was mortgaged. Here’s a brief explanation of why borrower and lender might agree to have such a clause in a loan contract (in this case, the borrower is a real estate developer):