Non-Recourse Finance


Also found in: Dictionary, Legal.
Related to Non-Recourse Finance: Limited Recourse Financing

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.
References in periodicals archive ?
from Shinsei's domestic real estate non-recourse finance business more
True, non-recourse finance is a rare product and we trust this will ensure that ExecuJet continues to stay one step ahead in the industry."
It is limited or non-recourse finance, so the SPC bears the project risks and the sponsors endeavour to limit their exposures to those set out in project agreements and to the extent of the recourse required by commercial lenders.