Non-Recourse Finance

(redirected from Nonrecourse 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 ?
An exchange (or modification) of an outstanding debt instrument for a nonrecourse debt instrument is not a potentially abusive situation solely by reason of the receipt of the nonrecourse financing (Regs.
It will also promote a long-term, nonrecourse financing of the public asset investments, and introduce incentive-based Public Based Management Contracts ("PBMCs").
The contract has been signed to facilitate nonrecourse financing and to develop, construct and own up to one GW of utility-scale solar photovoltaic projects in China over the next three years.
The venture will focus on facilitating nonrecourse financing and developing up to 1GW of utility-scale PV projects in China over the next three years.
A regional bank provided nonrecourse financing for the construction of a 59,582 square foot office building in Queens County, New York.
ABC, through the use of $800,000 in nonrecourse financing and $200,000 in cash, purchased several horses as a part of this breeding program.
Of this amount, 75 percent is expected to be funded by nonrecourse financing while the remaining 25 percent will be funded by equity.
Congress enacted the at-risk rules of section 465 as part of the 1976 Tax Reform Act, effective for years beginning in 1976, to limit a taxpayer's ability to use nonrecourse financing to generate tax losses in excess of the taxpayer's economic risk.
Treasury Secretary Timothy Geithner's new public-private investment program to buy toxic assets has few takers, despite subsidized nonrecourse financing, So the toxic assets remain on bank (and other) balance sheets.
The loan was structured to be a 35-year self-amortizing, nonrecourse financing and was funded to 85 percent of value.
An owner's at-risk amount is an ever-changing number equal to: 1) cash or the adjusted basis of noncash property contributed to the business, plus 2) most recourse borrowings by the business for which the owner has personal liability, plus 3) the owner's share of amounts borrowed for use in the business that are qualified nonrecourse financing (qualified nonrecourse financing is present if the business has nonrecourse debt collateralized with real property it uses in its business), plus 4) the owner's share of flowed-through income items.
The proposed regulations also deal with whether qualified nonrecourse financing may be secured by property that is incidental to the activity of holding real property.