Full recourse

(redirected from With Recourse)
Also found in: Dictionary, Thesaurus, Legal, Encyclopedia.

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 ?

3474, section 138 calls for federal banking agencies to review the capital standards applicable to loans sold with recourse and revise their capital standards in accordance with the agencies' findings.

Statement by John P. LaWare

Banking organizations using this exception would not be required to malntaln capital against residential mortgages that they have sold with recourse if, at the time of the transfer, the maximum possible recourse obligation is less than the expected loss on the transferred assets and a liability or specifically identified, noncapital reserve is established and maintained for an amount equal to the maximum loss possible under the recourse provision.

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

The FASB is also reviewing GAAP accounting standards for asset sales with recourse in conjunction with its Financial Instruments Project and expects to develop a comprehensive set of accounting standards for all financial instruments, including those associated with asset securitization.