Nonrecourse Debt

Nonrecourse Debt means:
a debt for which an individual has no personal liability. For example, a lender may take the property pledged as collateral to satisfy a debt, but has no recourse to other assets of the borrower. The at-risk rule bars claiming tax losses beyond equity contributions where there is nonrecourse financing, except for third-party debt on real estate used in a trade or business. Former IRC (check if this IRC provision is current here) §465.