The provision of a loan to a business entity declaring that in the event of a loss to the lender associated with the loan on a property, the borrower(s) will not be held personally liable for the loss.

• There is a carveout clause in the non-recourse that states how the lender can recover the amount of unpaid tax liens accrued on the property from the borrower personally.
• Many people try to put a loan in a company or business's name, that way if the loan defaults, they have not personally guaranteed the loan and are therefore not personally responsible.