Recourse means the retention, by a bank, in form or in substance, of any credit risk directly or indirectly associated with an asset it has transferred and sold that exceeds a pro rata share of the bank’s claim on the asset. If a bank has no claim on a transferred asset, then the retention of any risk of credit loss is recourse. A recourse obligation typi- cally arises when a bank transfers assets and retains an explicit obligation to repurchase the assets or absorb losses due to a default on the payment of principal or interest or any other deficiency in the performance of the underlying obligor or some other party. Recourse may also exist implicitly if a bank provides credit enhancement beyond any contractual obligation to support assets it has sold. The following are examples of re- course arrangements:
Recourse means an arrangement in which a bank retains, in form or in sub- stance, of any credit risk directly or indi- rectly associated with an asset it has sold (in accordance with generally accepted account- ing principles) that exceeds a pro rata share of the bank’s claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. A re- course obligation typically arises when an institution transfers assets in a sale and re- tains an obligation to repurchase the assets or absorb losses due to a default of principal or interest or any other deficiency in the performance of the underlying obligor or some other party. Recourse may exist im- plicitly where a bank provides credit en- hancement beyond any contractual obliga- tion to support assets it has sold. The fol- lowing are examples of recourse arrange- ments:
Recourse means an arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset.
Examples of Recourse in a sentence
Party A acknowledges and agrees that all obligations of Party B in respect of amounts owing to the Party A pursuant to this Agreement are subject to the terms of Clauses 6.2 (Pre-enforcement Priority of Payments) and 22.2 (Limited Recourse) of the Deed of Charge.
Purchaser is buying the property As-Is, Where-Is and without Recourse.
More Definitions of Recourse
Recourse means, with reference to any obligation or liability, any liability or obligation that is not Without Recourse to the obligor thereunder, directly or indirectly. For purposes hereof, a Person shall not be deemed to be “indirectly” liable for the liabilities or obligations of an obligor solely by reason of the fact that such Person has an ownership interest in such obligor, provided that such Person is not otherwise legally liable, directly or indirectly, for such obligor’s liabilities or obligations (e.g. by reason of a guaranty or contribution obligation, by operation of law or by reason of such Person being a general partner of such obligor). A guaranty of Debt issued by Borrower or General Partner (as distinguished from a Subsidiary) shall be Recourse, but a guaranty for completion of improvements in connection with Debt shall be deemed Without Recourse, unless and except to the extent of a claim made under such guaranty that remains unpaid.
Recourse. The Bank agrees (i) that any claim, liability, or obligation arising hereunder or under the Note whether on account of the principal of any Loan, interest thereon, or any other amount due hereunder or thereunder shall be satisfied only from the assets of the specific Fund for whose benefit a Loan is borrowed and in any event in an amount not to exceed the outstanding principal amount of any Loan borrowed for such Fund's benefit, together with accrued and unpaid interest due and owing thereon, and such Fund's share of any other amount due hereunder and under the Note (as determined in accordance with the provisions hereof) and (ii) that no assets of any Fund shall be used to satisfy any claim, liability, or obligation arising hereunder or under the Note with respect to the outstanding principal amount of any Loan borrowed for the benefit of any other Fund or any accrued and unpaid interest due and owing thereon or such other Fund's share of any other amount due hereunder and under the Note (as determined in accordance with the provisions hereof).
Recourse means, with reference to any indebtedness for money borrowed, the portion of such indebtedness, if any, that is not Without Recourse to the obligor thereunder, directly or indirectly. For purposes hereof, a Person shall not be deemed to be “indirectly” liable for indebtedness of an obligor solely by reason of the fact that such Person has an ownership interest in such obligor, provided that such Person is not otherwise legally liable, directly or indirectly, for such obligor’s indebtedness (e.g., by reason of a guaranty or contribution obligation, by operation of law or by reason of such Person being a general partner of such obligor).
Recourse means, with reference to any obligation or liability of any person, any liability or obligation that is not Non-Recourse to such person.
Recourse means, with reference to any obligation or liability, any liability or obligation that is not Without Recourse to the obligor thereunder, directly or indirectly. For purposes hereof, a Person shall not be deemed to be “indirectly” liable for the liabilities or obligations of an obligor solely by reason of the fact that such Person has an ownership interest in such obligor, provided that such Person is not otherwise legally liable, directly or indirectly, for such obligor’s liabilities or obligations (e.g., by reason of a guaranty or contribution obligation, by operation of law or by reason of such Person being a general partner of such obligor). A guaranty of Debt issued by Borrower or General Partner (as distinguished from a Subsidiary) shall be Recourse, but a guaranty for completion of improvements in connection with Debt shall be deemed Without Recourse, unless and except to the extent of a claim made under such guaranty that remains unpaid.
Recourse means a bank’s retention, in form or in substance, of any credit risk di- rectly or indirectly associated with an asset it has sold that exceeds a pro rata share of that bank’s claim on the asset. If a bank has no claim on a sold asset, then the retention of any credit risk is recourse. A recourse ob- ligation typically arises when a bank trans- fers assets and retains an explicit obligation to repurchase assets or to absorb losses due to a default on the payment of principal or interest or any other deficiency in the per- formance of the underlying obligor or some other party. Recourse may also exist implic- itly if a bank provides credit enhancement beyond any contractual obligation to sup- port assets it has sold. The following are ex- amples of recourse arrangements:
Recourse means, with respect to any Indebtedness or Guaranty Obligation of any Person, that such Indebtedness or Guaranty Obligation is recourse to the assets and/or properties of such Person (except as provided below); provided, however, that with respect to nonrecourse Indebtedness secured by real property which contains limitations to the nonrecourse nature of the obligation, such limited nonrecourse obligations shall be deemed "Recourse" if and to the extent the nonrecourse exceptions are for liability of such Person for any of the following under any applicable loan documentation and any such events or circumstances described in clauses (a) through (j) have occurred: (a) fraud, waste, material misrepresentation, or willful misconduct; (b) indemnification with respect to environmental matters or failure to comply with Hazardous Materials laws; (c) failure to maintain required insurance policies; (d) misapplication of insurance proceeds, condemnation awards and tenant security deposits; (e) breach of covenants relating to unpermitted transfers or encumbrances of real property or other collateral; (f) misappropriation or misapplication of property income; (g) breach of covenants relating to unpermitted transfers of interests in a Person; (h) failure to deliver books and records; (i) failure to pay transfer fees or charges; or (j) other matters substantially the same as those set forth in clauses (a) through (i) above. An obligation of a Person that is without Recourse to the assets and/or properties of such Person shall not be considered a "Recourse" obligation unless any of the events or circumstances described in clauses (a) through (j) above have occurred. Indebtedness of a Single Purpose Entity secured by that Single Purpose Entity's real Property assets shall not be considered a "Recourse" obligation provided the Indebtedness is recourse only to such Single Purpose Entity's assets. A Guaranty Obligation with respect to the events or circumstances described in clauses (a) through (j) above of a Single Purpose Entity shall not be deemed a "Recourse" obligation if such events or circumstances have not occurred.