Okuzeka
Finance & Banking vocabulary · Corporate Finance

Limited recourse

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, limited recourse means: A financing arrangement restricting a lender's recovery claims to specified assets, parties or circumstances.

In Turkish: sınırlı rücu

How it is used

Specify the limits and exceptions; limited recourse does not mean that every claim is excluded.

Example sentences

  1. The project loan had limited recourse to the sponsor after construction.

    The lender's access to the sponsor changes under stated conditions.

  2. The lawyers reviewed the fraud exception to limited recourse.

    Exceptions can preserve claims despite a general restriction.

Common collocations

  • limited recourse financing
  • limited recourse provision
  • project financeLong-term financing for a large project, such as a power plant or motorway, in which the loan is repaid mainly from the project's own future cash flows.
  • collateralAn asset, such as property, cash or securities, that a borrower pledges to a lender and that the lender can sell if the loan is not repaid.

More terms: Corporate Finance

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This page explains English vocabulary for learners. It is not financial advice.