An expense that arises from the payment of a non-recourse loan. Where a borrower is unable to pay a loan, the loan issuer's only option of receiving payment for the loan is by seizing and selling the collateral deposited by the borrower. Regardless of the loan amount, only funds generated from the sold collateral(s) can be used to clear the debt, any loss made between the generated fund and loan issued is then referred to as "non-recourse expense".
Related information about nonrecourse expense:
- What is nonrecourse loan? definition and meaning
nonrecourse loan. nonrecourse expense · dry mortgage. Definition. A loan in which the borrower is not held personally liable in the case of default.
- What is nonrecourse debt? definition and meaning
nonrecourse debt. nonrated · nonrecourse expense. Definition. Debt for which the borrower is not personally liable. In the event of default, the lender has access ...
- What is seizing? definition and meaning
Related Terms. distraint · sequestration · Eminent Domain · levy · equity grabbing · attachment · nonrecourse expense · bankruptcy trustee. Browse by Letter: ...
- What is collateral? definition and meaning
used margin · unsecured loan · additional collateral · second lien debt · nonrecourse expense · shareholder loan · cash collateral · inventory financing ...
- InvestorWords.com: Terms starting with N
nonrecourse expense · nonrecourse loan · nonrecourse sale · nonrecurring charge · nonrecurring closing costs · nonrefundable · nonregulated · nonrenewable ...
- Browse InvestorWords.com: Lending & Credit terms
nonperforming asset · nonproductive loan · nonrecourse debt · nonrecourse expense · nonrecourse loan · nonrecurring closing costs · normal yield curve ...