Non-Recourse Debt
A loan that is secured by some sort of collateral, usually property. The issuer can seize the collateral if the borrower defaults.
Investopedia Commentary
These types of projects are characterized by high capital expenditures, long loan periods, and uncertain revenue streams. Analyzing them requires a sound knowledge of the underlying technical domain as well as financial modeling skills
As a taxpayer, you cannot claim a tax loss any greater than the amount of equity you put into the loan.
Related Links
Off-Balance-Sheet Entities: The Good, The Bad And The Ugly
See also: Collateral, Debt, Default, Non-recourse Finance, Project Finance
Also spelled: Non Recourse Debt, Non-Recourse Debts, Non Recourse Debt, nonrecourse, nonrecourse debt