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Limited recourse: Difference between revisions
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Of a {{tag|contract}}, that the [[obligor]]’s obligations under it are limited to a defined pool of assets. Usually the limitation of a claim in this way goes hand-in-hand with a security interest over the defined pool of assets. | Of a {{tag|contract}}, that the [[obligor]]’s obligations under it are limited to a defined pool of assets. You see this a lot in [[repackaging]]s, [[securitisation]]s and other structured transactions involving [[espevie]]s. | ||
Usually the limitation of a claim in this way goes hand-in-hand with a security interest over the defined pool of assets. | |||
Security and limited recourse are fundamental structural aspects of contracts with [[Special purpose vehicle|special purpose vehicles]] and [[investment fund]]s, so if you feel the urge to challenge these provisions, do yourself and everyone else on the deal a favour: save your breath. | Security and limited recourse are fundamental structural aspects of contracts with [[Special purpose vehicle|special purpose vehicles]] and [[investment fund]]s, so if you feel the urge to challenge these provisions, do yourself and everyone else on the deal a favour: save your breath. | ||