recourse

recourse definition - business

recourse

The right of a lender to demand payment from a guarantor of a loan in the event the primary borrower defaults. For example, Lender A sells a loan with recourse to lender B. Lender B can seek payment from Lender A in the event the borrower defaults.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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