Recourse, Nonrecourse, and Liability Limits

These pages explain whether a lender can pursue the borrower beyond pledged collateral after default.

In this section

• Non-Recourse Loan
  A non-recourse loan limits lender recovery primarily to the pledged collateral if the borrower defaults.
• Recourse Loan
  Loan structure that lets the lender pursue the borrower beyond the collateral if sale proceeds do not fully repay the debt.