Limited recourse

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Limited recourse

A term describing a type of loan in which the lender has limited or no claim against the parent company if the collateral is insufficient to repay the debt. See:Nonrecourse.

Limited Recourse

Describing a loan that is secured up to a certain amount. For example, a loan on which one-third of the principal is secured or collateralized is a limited recourse loan. These loans may be used in project finance; a company may issue a bond with limited recourse for the first five years of its life, after which it becomes fully secured. Limited recourse loans carry lower interest rates than without recourse loans. In the event of liquidation, limited recourse debt is paid after secured debt and before unsecured debt.
References in periodicals archive ?
Global legal practice Norton Rose Fulbright advised a syndicate of lenders on a limited recourse financing to PT Hoegh LNG Lampung for the purpose of financing the construction of one LNG Floating Storage and Regasification Unit (FSRU) under construction in Korea and the procurement of a tower yoke mooring system.
The Sarulla project will obtain construction and term loans under a limited recourse financing package of direct loans from JBIC and ADB, as well as loans from the Covered Lenders backed by political risk guarantees from JBIC.
Internationally, Rabobank is a premier bank to the food, beverage and agribusiness industry, as well as a leading financial partner in the renewable energy and project finance area, offering non- and limited recourse financing to solar, onshore and offshore wind, and bioenergy projects.
Jeff is experienced in limited recourse financing structures of all types, including asset-backed loans and asset-backed securities," stated Rocky Lee, Head of Cadwalader's Asia practice.
In order to observe prudence, while undertaking Limited Recourse Financing for Infrastructure Projects, banks/DFIs shall secure their interest by Primary Security/Collateral, besides either one or a combination of the Secondary Securities/Collateral.
He added that Emirates Steel's limited recourse financing is scheduled to reach financial close before the end of August 2010.
And in July last year GDF Suez, the French-based energy company, along with Gulf Investment Cooperation (GIC) completed limited recourse financing for the $2.
Last July, GDF Suez, the French-based energy company, along with Gulf Investment Co-operation completed limited recourse financing for the $2.
5 billion through limited recourse financing to cover the financing needs of the first and second phases of the expansion.
Large power stations are expensive and limited recourse financing may be required, whereas project sponsors may wish to finance the LNG terminal on a recourse basis.
The debt facility is structured as a limited recourse financing consisting of a pre and post-completion construction financing of up to US $300 million that converts into a 5-year US $300 million amortizing term loan following delivery of the Sevan Voyageur to Oilexco North Sea.
The funding is the first limited recourse financing deal in the Ukrainian renewable energy sector, which means that Novoazovskiy Wind Park established solely to generate electricity does not require external guarantees for the purposes of loan repayment.
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