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Nonrecourse

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Nonrecourse
In the case of default, the lender has no ability to claim assets over and above what the limited partners contributed.

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.


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Because of the popularity of the limited liability company (LLC), a significant number of these deficits in member capital accounts will be created through nonrecourse deductions, which refer to depreciation and other deductions that may be borne by a nonrecourse lender.
Marcus & Millichap Capital Corporation (MMCC) has arranged a $5 million fixed-rate, nonrecourse loan to refinance a 48-unit mixed use building with 4 retail spaces in the Union Square neighborhood of Manhattan.
In addition, the Fed will extend nonrecourse loans to banks to finance their purchases of asset-backed commercial paper from money-market managers facing redemption demands.
 
 
 
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