No personal liability. Lenders may take the property pledged as collateral to satisfy a debt, but have no recourse to other assets of the borrower.

A type of borrowing in which the lessee-borrower is not at-risk for the borrowed funds. The lender expects repayment from the lessee and/or the value of the leased equipment; hence, the lender's credit decision is based upon the creditworthiness of the lessee, as well as the expected value of the leased equipment.

Elimination of recourse or personal guarantee for an obligation. (See "Carve-Outs.")

Without recourse, as in a non-recourse lease.