A non-recourse loan is one in which
A)the lender can force repayment of the loan at any time, and the borrower must comply.
B)the borrower pays the lender a premium that the lender may keep if the borrower defaults on the loan.
C)the lender is entitled to the proceeds from the sale of any asset collateralizing the loan, but cannot seize any of the other assets of the borrower.
D)the lender may put a lien on the other assets of the borrower requiring future payment if the proceeds from the sale of the asset collateralizing a loan is not enough to repay the loan
In full.

Question

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A non-recourse loan is a type of loan in which the lender is entitled to the proceeds from the sale of any asset collateralizing the loan, but cannot seize any of the other assets of the borrower. This means that if the borrower defaults on the loan, the lender cannot go after other assets owned by the borrower in order to recoup the rest of the loan amount. This type of loan is often used in real estate financing, where the property being purchased serves as collateral for the loan. In a non-recourse loan, the lender is entitled to the proceeds from the sale of any asset that is used to collateralize the loan. However, the lender cannot seize any of the borrower's other assets if the proceeds from the sale of the collateral are not enough to repay the loan. This type of loan is typically used in situations where the collateralized asset is considered the only reliable source of repayment for the loan.

A Non-Recourse Loan Is One in Which