Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

nonrecourse note

Read a random definition: maximum sentence

A quick definition of nonrecourse note:

A nonrecourse note is a type of written promise to pay money that can only be paid back using the collateral that secures the note, not the borrower's other assets. This means that if the borrower defaults on the loan, the lender can only take the collateral and cannot go after the borrower's other possessions. It is different from a recourse note, which allows the lender to go after the borrower's other assets if the collateral is not enough to cover the debt.

A more thorough explanation:

A nonrecourse note is a type of promissory note that can only be satisfied by the collateral securing the note, not by the debtor's other assets. This means that if the borrower defaults on the loan, the lender can only go after the collateral and cannot pursue the borrower's other assets.

For example, if a borrower takes out a nonrecourse loan to purchase a property, and the property's value decreases, the lender cannot go after the borrower's other assets to recover the difference. The lender can only take possession of the property securing the loan.

Nonrecourse notes are often used in real estate transactions, where the property being purchased serves as collateral for the loan. They are also used in some types of business loans, where the assets being financed serve as collateral.

nonrecourse loan | nonrecurring dividend

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
8:57
There’s someone I found on here with the username threeoutchange and if my understanding is correct that’s a reference to the debut album by a pretty cool 90s-00s Japanese band called Supercar. I geeked a little
8:57
It could just be a baseball reference I don’t get though lol
Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
Dkk
9:07
@renard99: man, hard to find.
Dkk
9:07
@glovediedthisishismom: Congrats on the snow.
Dkk
9:16
@renard99: Poetic and nice.
9:42
My name is renard99 and I just sent @babycat feet pics
glovediedthisishismom
9:42
nobody is at the office today they should let little glovey go home and watch harry potter
Dkk
9:49
Lmfao, Gross
Dkk
9:49
@glovediedthisishismom: Watch it at the office!
Dkk
9:50
Proton vpn and https://en.solarmovie-official.lol/
let little glovey go home!
LSD+ is ad-free, with DMs, discounts, case briefs & more.