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.
References in periodicals archive ?
465 of a member's guaranteeing the debt of an LLC classified as a partnership (or a disregarded entity), the consequences when the debt of the LLC is classified as "qualified nonrecourse financing" under Sec.
He required a highly leveraged, nonrecourse loan and we closed the transaction in 30 days.
Permanent law provides mandatory support for basic crops through nonrecourse loans.
A $7,100,000 nonrecourse permanent loan for a Best Buy facility in Alpharetta, Georgia, was negotiated on a fixed-rate basis for a term of 10 years on a 30-year amortization schedule.
The company also announced that in the last three weeks it has closed on $816 million of new fixed rate nonrecourse mortgage loans and assumed $39 million of nonrecourse fixed rate debt in connection with the Ivanhoe transaction.
The rules for nonrecourse liabilities on the other hand are quite complex.
300), since the debt was nonrecourse, the sale price was deemed to be the full amount of the debt.
Credit protection: Factors are nonrecourse lenders.
300 (1983), in which nonrecourse debt permits a taxpayer to have a basis in excess of his economic investment.
The underlying collateral consists of one- to four-family, first lien nonrecourse reverse mortgage loans.
1031 to defer the gain realized on the transfer of underwater property to the lender in satisfaction of a nonrecourse debt?
Marcus & Millichap Capital Corporation (MMCC) has arranged a $5 million fixed-rate, nonrecourse loan to refinance a 44-unit apartment building with four retail spaces in Union Square, Manhattan.