Finance

A NH commercial real estate investor's loan has a 'recourse' provision. This means:

AThe lender may only foreclose on the property
BThe borrower is personally liable for any deficiency remaining after foreclosure sale proceeds✓ Correct
CThe borrower may prepay without penalty
DThe loan has a floating interest rate

Explanation

A recourse loan allows the lender to pursue the borrower personally for any deficiency remaining after a foreclosure sale (if the sale proceeds are less than the outstanding debt). Non-recourse loans limit lender recovery to the property only.

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