recourse loan

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Recourse Loan

A loan for which there is a co-signer. That is, if the borrower defaults on the loan, the co-signer becomes legally liable for repayment. Thus, in addition to any collateral that may or may not secure the loan, the lender is further protected from default by the existence of the co-signer. See also: Non-recourse loan.

recourse loan

A loan in which the lender can claim more than the collateral as repayment in the event that payments on the loan are stopped. Thus, a recourse loan places the borrower's personal assets at risk. Compare nonrecourse loan.
References in periodicals archive ?
NAA/NMHC and a coalition of trade groups have filed a "friend of the court" brief in an important case pending before the Michigan Supreme Court that could have a chilling effect on conduit borrowers, including apartment firms, by converting non-recourse loans into recourse loans (Wells Fargo Bank, N.
Given Treasury's intention of coupling the allocation of debt-financed deductions with the allocation of the liability that is financing the deductions among partners, it appears the deductions that are financed by member recourse loans generally should be allocated to the lending or guaranteeing member.
In the case of member recourse loans, the liability does not fall squarely within the definition of partner nonrecourse debt under Regs.
One suggested approach would be that by not subjecting the deduction attributable to a member recourse loan to the partner nonrecourse debt rules, the LLC is free to allocate these deductions pursuant to the general sharing ratio under the partnership agreement.
In non-recourse loans, some "bad boy" provisions have the effect of converting the non-recourse loan to a full recourse loan such that the borrower becomes liable for the full amount of the loan.
We are also seeing more non-recourse commercial loans being sold this quarter opposed to recourse loans, as well as more and more loans secured by retail assets.
DBSI allegedly used powers of attorney, signed by investors at real estate closings, to convert non-recourse loans to recourse loans - making investors personally liable without their knowledge.
Typical of commercial lending a couple of years ago were recourse loans at a 50 percent loan-to-value (LTV).
5 million short tons or less would deny sugar processors access to anything other than recourse loans.
A recourse loan, on the other hand, must be repaid with dollars, no matter how low the commodity's price might drop, setting up situations where a farmer could have his tractor or other farm equipment seized to satisfy the loan.
In the case of a recourse loan, the borrower has given an agreement to the lender to repay the debt.
The default of a recourse loan is quite serious, because other assets of the property owner/borrower, whether an individual or a corporation, are liable for the remaining debt and might be seized by the lender.