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 ?
Similarly, in Q4, we continue to expect to generate positive cash from operating cash flows net of capital expenditures, as well as the normal inflow of cash received from nonrecourse financing activities on leased vehicles and solar products." 2.
Indovina Bank of Vietnam and RCBC of the Philippines will provide nonrecourse financing for the Dak Lak and Khanh Hoa projects, respectively.
In the past, nonrecourse financing vehicles have carried stiff prepayment penalties, making them unsuitable for short-term borrowers, said Franta.
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.