An exculpatory clause is a provision in a mortgage allowing the borrower to surrender the property to the lender without personal liability for the loan. This means the borrower can walk away from the property if unable to meet the mortgage obligations, without other personal assets being pursued for the debt.
‘Without recourse’ is a term used in endorsing a note or bill to indicate that the holder cannot look to the debtor personally for payment if the debtor defaults. The recourse is only to the property involved. It is similar to a nonrecourse loan and is often used as a form of exculpation.
