A dummy corporation is an entity established to facilitate business transactions on behalf of a principal by superficially holding certain assets or liabilities.
Nonrecourse financing refers to loans secured by collateral, typically real estate, where the lender's ability to recover the debt is limited to the proceeds from the sale of that collateral alone, with no further recourse to the borrower's other assets.
A Reverse (Annuity) Mortgage is a type of mortgage designed primarily for elderly homeowners with substantial equity in their homes. The lender periodically pays an amount to the borrower, with the loan balance increasing over time due to interest and periodic payments, ultimately resulting in negative amortization. The nonrecourse loan is repaid from the proceeds of a future sale of the home.
‘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.
