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What is resource debt

What is resource debt

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Answer #1

The question here asked should be about recourse debt instead of resource debt and explanation to recourse deby is as follows.

Recourse that is such a debt financing where the lender gets the full control on the debtor's assets in case if the debtor is unable to pay the debt. It is a type of bank loan or house loan where a property or asset is kept with the financial institution so that in case of any default the lender (financial institution) could collect its money from the borrowers assets.

Non-payment of recourse debt even allows the lender to pursue legal actions against the debtor/borrower.
It is also stated that mortgages in US are generally non-recourse debts, but on the request of the lending institution, these can become recourse debt too.

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