Recourse

Recourse means:
the ability of a lender to claim money from a borrower in default, in addition to the property pledged as collateral. The at-risk rule does not bar losses where there is recourse financing.

See also other Tax Terms and Definitions in U.S.A.

non-recourse debt.

Example of Recourse:

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Ross obtains a mortgage loan from Local Savings. Should Ross default on the loan, Local Savings may foreclose and force the sale of the mortgaged property. Should the sale fail to satisfy the unpaid loan principal, Local Savings has recourse to Ross's other assets.