Non-Recourse Debt

A type of loan where the collateral is the only thing a lender can pursue if the loan doesn't get paid back. So if you get a non-recourse $5,000 loan to pay for a boat but then stop paying the bank, the bank can come and take away your boat. If they can only sell the boat for $3,000, though, they can't come after you for the rest of the cash.