An obligation which gives the creditor the rights to retain a limited amount of the debtor's assets, in the event of default. Such an obligation means the debtor will generally pay a lower interest rate as compared to unsecured bonds. Its safety position is between an unsecured and secured obligation, which may eventually shift towards secured in due course. For example, a power plant needing finance for its projects may agree upon payment of 35% of the principal amount in the event of default.
Related information about limited recourse debt:
- Limited Recourse Debt Definition | Investopedia
Limited recourse debt sits in between secured bonds and unsecured bonds in ... Often a limited recourse debt contract is structured so that the debt transitions to ...
- Recourse debt - Wikipedia, the free encyclopedia
Recourse debt can either be full or limited recourse debt. A full recourse debt gives the granter the right to take any and all assets of the debtor, up to the full ...
- Non-recourse/limited recourse debt
Limited recourse debt gives the lender a limited amount of recourse to the borrowers other assets. Non-recourse lending is common in project finance. It is also ...
- Limited Recourse - Financial Dictionary - The Free Dictionary
In the event of liquidation, limited recourse debt is paid after secured debt and before unsecured debt. Want to thank TFD for its existence? Tell a friend about us , ...
- Amending the 'limited recourse debt' definition
'Limited recourse debt' includes arrangements where the creditor's right to recover the debt is effectively limited to the financed asset or security provided.
- Limited Recourse Debt - Amended Definition | The Treasury
As part of the 2012-13 Budget, the Government announced it will clarify that limited recourse debt includes arrangements where the creditor's right to recover the ...
- What is limited recourse debt? definition and meaning
Definition of limited recourse debt: An obligation which gives the creditor the rights to retain a limited amount of the debtor's assets, in the event of default.
- Limited recourse debt - BDO Australia
Following the Taxation Commissioner's unsuccessful attempt to prevent debt deductions in the BHP Billiton Finance case, the definition of 'limited recourse debt' ...