BusinessAugust 16, 2026
nonrecourse
non-ri-KORS
Definition
Describing a type of loan where the borrower is not personally liable for repayment beyond the specific assets pledged as collateral.
Etymology
Derived from the Latin 'recursus' (a running back), the term entered legal English to describe a situation where a lender has 'no recourse' to the borrower's other assets if the loan defaults.
In the news
Khanna suggests a nonrecourse loan as a way for startup founders to pay the wealth tax without being personally liable if their company's stock value drops.
Mark Cuban tells Ro Khanna 'you don't understand business,' threatens investment shift over billionaire tax
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