Full recourse

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Related to With Recourse: Without recourse

Full recourse

No matter what risk event occurs, the borrower or its guarantors guarantee to repay the debt. This is not a project financing unless the borrower's sole asset is the project.

Full Recourse

Describing a loan for which there is a co-signer. That is, if the borrower defaults on the loan, the co-signer becomes legally liable for repayment. Thus, in addition to any collateral that may secure the loan, the lender is further protected from default by the existence of the co-signer. See also: Non-recourse loan.

References in periodicals archive ?

Table--6 NPL of factoring industry without recourse and with recourse Year Value Growth (Rp.

Factoring industry in Indonesia remains in the doldrums

Under this treatment, when a loan is transferred with recourse, the agencies have generally treated the transaction as a borrowing and have required the transferor to maintain capital against the entire amount of the assets transferred.

Statement by John P. LaWare

Under this treatment, when a loan is transferred with recourse, the agencies have generally treated the transaction as a borrowing and required the transferor to maintain capital against the entire amount of the assets transferred.

Statement by John P. LaWare, Member, Board of Governors of the Federal Reserve System, before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, September 9, 1993

Let me now turn to our policy pertaining to the maintenance of capital when assets are sold with recourse (that is, the seller agrees, under one of several possible arrangements, to cover some or all losses on the assets).

Statement by Richard Spillenkothen, Director, Division of Banking Supervision and Regulation, Board of Governors of the Federal Reserve System, and Donald H. Wilson, Financial Markets Officer, Federal Reserve Bank of Chicago, before the Subcommittee on Policy, Research, and Insurance of the Committee on Banking, Finance and Urban Affairs, U.S. House of Representatives, May 6, 1992

Another example is sale of loans with recourse. Many such transactions involve sales of pools of mortgage loans.

Accounting for the sale of receivables under EITF Issue NO. 88-11

Second, bank holding companies that transfer assets with recourse to the seller as part of the securitization process are required under the risk-based capital guidelines to hold capital against their off-balancesheet credit exposures.

Statement of Franklin D. Dreyer, Senior Vice President, Supervision and Regulation and Loans, Federal Reserve Bank of Chicago

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