ok so this mid sem break. wasn't a very successful one on my part. lol
the start of it was quite productive going to like places, but then gg after tuesday night, i was just smacked out for a while. and that is so lame.
now i have so much hw catch up stuffs to do....
and omg investopedia rocks.
i've been confused over the term "recourse" since the start of semester, and i just looked it up on investopedia. and tada.
What Does Full Recourse Debt Mean?
A guarantee that no matter what happens, the borrower will repay the debt. Typically with a full recourse loan no occurrence, such as loss of job or sickness, can get the borrower out of the debt obligation. In this situation, if there is no collateral for the loan, the lender can go after the borrowers personal assets to collect if the loan is defaulted.
In contrast, a limited recourse loan would only allow the lender to take assets that are listed as collateral in the signed loan agreement. Also, a non-recourse loan would have no collateral and the lender would only be able to take the asset that is being financed, such as a home in a non-recourse mortgage.
love.
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