Recourse

Term describing a type of loan. If a loan is with recourse, the lender has a general claim against the parent company if the collateral is insufficient to repay the debt.

A type of borrowing in which the borrower (a lessor funding a lease) is fully at-risk to the lender for repayment of the obligation. The recourse borrower (lessor) is required to make payments to the lender whether or not the lessee fulfills its obligation under the lease agreement.