Recourse debt, also known as a recourse loan is a debt that is backed by collateral from the borrower. This type of debt allows the lender to collect from the debtor and the debtor's assets in the case of default as opposed to foreclosing on a particular property or asset. In the event that a project cannot service the financing or achieve completion, the financiers have 'recourse' to either cash from the project sponsor or other non–project security.
