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LSDefine

Simple English definitions for legal terms

nonrecourse loan

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A quick definition of nonrecourse loan:

A nonrecourse loan is a type of loan where the lender can only take the collateral (like a house or car) if the borrower can't pay back the loan. The lender can't go after the borrower's personal assets. It's like borrowing a toy from a friend, but if you can't give it back, they can only take the toy and not anything else you own.

A more thorough explanation:

A nonrecourse loan is a type of secured loan where the lender can only seize the collateral if the borrower defaults on the loan. The lender cannot go after the borrower's personal assets to recover the loan amount.

For example, if a borrower takes out a nonrecourse loan to buy a car and defaults on the loan, the lender can only repossess the car and sell it to recover the loan amount. The lender cannot sue the borrower for any remaining balance if the sale of the car does not cover the full loan amount.

Another example is a nonrecourse mortgage loan. If the borrower defaults on the loan, the lender can only foreclose on the property and sell it to recover the loan amount. The lender cannot sue the borrower for any remaining balance if the sale of the property does not cover the full loan amount.

Nonrecourse loans are often used in real estate and commercial lending, where the collateral is the property or the business itself. They are less risky for borrowers because they limit the lender's ability to go after their personal assets.

nonrecognition provision | nonrecourse note

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General

General chat about the legal profession.
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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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