The financial definition for Without recourse:
Giving the lender no right to seek payment or seize assets in the event of nonpayment from anyone other than the party specified in the debt contract (such as a special-purpose entity).
In the case of default, the lender has ability to claim assets over and above what the limited partners contributed.
Nonrecourse loanNonrecourse loan
A loan taken by limited partners used to finance their portion of the partnership, which is secured by their ownership in the venture.
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.
Further Suggestions Without Recourse Financing
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