Nonrecourse Debt

(redirected from Non-recourse loan)

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 ?
But a reverse mortgage is also a non-recourse loan, which means neither the borrower nor the heirs will be considered as liable to clear the loan.
Due to a time-sensitive closing following a recent rezoning, Knighthead was able to meet the sponsor's tight deadline and fund the 18-month, non-recourse loan.
The non-recourse loan represents 80 percent of the subject properties' total value.
Each transaction provided cash out to the borrower and was structured as a ten-year, non-recourse loan with interest-only for the entire term.<br />&nbsp;
Holiacute#269 is asking for a non-recourse loan for the Ausblick mit Weitblick (i.e.
The non-recourse loan, funded through a relationship lender, represented approximately 70% of appraised value of the property at a 4.16% fixed interest rate for 10 years, 2 years interest-only, followed by 8 years of amortization on a 30-year schedule.
The 72.8% LTV, $5,900,000 non-recourse loan closed at 4.33% fixed for 10 years with 24 months IO, and amortizing 30 years thereafter.
The joint venture recently refinanced its existing debt with a new USD 950m non-recourse loan with JPMorgan Chase Bank (NYSE: JPM), National Association.
The essence of a non-recourse loan is that, upon the occurrence of a default by the borrower, the lender may look solely to the mortgaged property securing the debt.
The group relinquished its interest in the 1.2 million-SF Crossroads Mall in Oklahoma City in April along with its $61.2 million non-recourse loan from Bear Stearns Commercial Mortgage Inc.
Bank of America Large Loan Trust 2009-FDG is a USD460m issue backed by a single, seven-year, fixed-rate non-recourse loan to entities of Fortress Funds.
Goldman Sachs, BNP Paribas, and Barclays are reported to have put in place the non-recourse loan for Companhia Siderurgica Nacional (CSN).