Hi!
Got a question here. What’s the difference among the following types of security?
Secured
Non-recourse
Limited Recourse
Recourse
I understand that secured means the loan is backed by an asset/collateral, such that the lender has rights to it if the borrower defaults.
On the other end of the spectrum, there is the recourse loan which means the borrower guarantees to pay the lender even if the loan defaults and the lender can seize the borrowers asset to achieve that.
How about for non-recourse? I understand that to mean that the borrower is not liable for the loan. But is non-recourse secured as a pre-requisite?
Thank you作者: Chuckrox8 时间: 2013-8-9 10:40
