Glossary of Terms

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Non-Recourse Loan

A type of loan for which the sole payment source is the collateral or its cash flow; and the only remedy available to the lender in the event of default is to foreclose on the collateral. The borrower is not personally liable for repayment. This type of loan is most often seen in leveraged leases and in various loans made in respect of lease interests in equipment or other capital assets. (Courtesy www.elfaonline.org)

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