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A "nonrecourse" loan generally means that if a borrower defaults, the lender has rights to sell or repossess the mortgaged real estate or other collateral in order to recover on the loan but not other unrelated assets of the borrower. However, in a recent case, a borrower was personally liable for the full balance of a nonrecourse loan because of a carve-out provision in the promissory note.
October 17, 2002 at 12:00 AM
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The original version of this story was published on Law.Com
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