Finance
What is a 'non-recourse loan' in Nevada and how does it differ from a recourse loan?
AA non-recourse loan has no interest in Nevada
BA non-recourse loan limits the lender's remedy to the collateral (the property) — if the borrower defaults, the lender can foreclose but cannot pursue the borrower personally for any deficiency; recourse loans allow the lender to pursue the borrower's other assets✓ Correct
CNon-recourse loans are only available for commercial properties in Nevada
DNevada has no recourse loans for any property type
Explanation
Non-recourse loans limit lenders to foreclosure on the collateral — they cannot sue the borrower for additional amounts. Nevada's anti-deficiency statutes (NRS 40.455-40.459) effectively make certain purchase money residential mortgage foreclosures non-recourse by prohibiting deficiency judgments. Non-recourse protection is particularly important in Nevada's investor market for commercial properties — many commercial mortgages are structured as non-recourse with 'bad boy' carve-outs (fraud, waste, environmental). Understanding recourse vs. non-recourse affects investment risk analysis.
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