Nonrecourse Debt

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Non-Recourse Finance

A loan secured by the revenue of the project the loan intends to fund, and nothing else. That is, non-recourse finance does not allow the bank or other lending institution access to the borrower's other assets in the event of default. This is a relatively high-risk form of financing; projects that utilize non-recourse finance generally have uncertain revenue streams and long loan periods.

Nonrecourse Debt

Nonrecourse debt is debt for which the borrower is not personally liable. If the borrower defaults, the lender can take the property used to secure the loan, but no other property of the borrower.
References in periodicals archive ?
In association with this transaction, BNP Paribas and Credit Agricole arranged non-recourse debt funding for the venture.
SunEdison and Santander Global Banking and Markets ("Santander") closed a non-recourse debt financing arrangement to fund the construction of the projects in June 2014
NorthMarq successfully identified a non-recourse debt fund who was willing to lend at 80 percent LTV on an As Is basis with a good news facility to be earned out for tenant improvements and leasing commissions.
32 million) using the proceeds of new non-recourse debt facilities arranged by Bank Muscat, National Bank of Oman and Arab Banking Corporation.
39 million debts using the proceeds of new non-recourse debt facilities arranged with Bank Muscat, National Bank of Oman and Arab Banking Corporation.
a joint venture between AES Corporation and Riverstone Holdings LLC, announced that on December 30, 2008 one of its subsidiaries closed a 70 million (Euro) non-recourse debt facility for five of its photovoltaic (PV) projects in Spain.
The sale will eliminate approximately $575 million of associated non-recourse debt from El Paso's balance sheet.
Proceeds from these sales total approximately $739 million, plus the elimination of approximately $171 million in consolidated non-recourse debt.
One warning from the discussion: Be careful of an LLC's non-recourse debt which, in the 11th hour, the bank forces members to personally guarantee.
But because this isn't a consolidated enterprise, we'll arrange for local non-recourse debt to also help finance the business.
91-31, the IRS ruled that a reduction in the principal amount of an undersecured non-recourse debt by the creditor (who was not the seller of the property securing the debt) resulted in cancellation of indebtedness (COD) income to the debtor to the extent of the debt discharged.
9 million in unconsolidated, non-recourse debt at weighted average interest rates of 4.