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Limited recourse
A limited recourse loan is one with limited comeback (or recourse) to the borrower.
The comeback is usually limited to certain specified assets-usually the assets involved in, and income derived from, the project being financed.
The expression may also be used in circumstances where there is full recourse to the borrower, but the borrower is an SPV, which only owns assets relating to the project being financed.
In this case, the transaction is limited recourse to the shareholders of the SPV.
This is a structural limitation on recourse.
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