Description of Show recourse options and examples of Show recourse options in GoDocs documents
Recourse options refer to what the Lender is able to seize in the event of default in order to repay the outstanding loan amount.
Fully recourse - Lender is able to seize the collateral and Borrower's additional assets.
Non-recourse with carve-outs - Loan is non-recourse (meaning Lender is only able to seize the collateral) unless Borrower/Guarantor acts in a way to trigger full recourse (AKA "bad boy carveouts"). Examples include, fraud, intentional misrepresentations to Lender, misappropriating funds, etc.
Percentage Recourse, plus carve-outs - a certain percentage of the loan amount may be full recourse (e.g. $100,000 of a $1,000,000 loan) and the remainder is non-recourse with carveouts.
On how to add recourse to your order please see video linked below:
How To Video: Select recourse