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Special Report on

Nonrecourse debt Definition

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Non-recourse loans are secured loans that are collateralized with pieces of real estate or other forms of true assets--such as liquid capital and business holdings. The idea behind non-recourse loans is for the lender to make prudent underwriting decisions, because it can only collect the collateral to which the loan is secured if the borrower defaults. Non-recourse loans came about to restrict the amount of irresponsible lending in the marketplace. Some lenders, especially in high finance, were making loans to borrowers with limited collateral. In turn, when a borrower defaulted, the lender could aggressively pursue the ...
There are exceptions to this rule, however, so a careful examination of one's COD income is important to determine any potential tax consequences.
Cancellation of Debt and the Insolvency Exclusion
The general rule regarding cancellation of debt is that it is a taxable event. But there are some exceptions. The most common exceptions involve bankruptcy, the Mortgage Forgiveness Debt Relief Act (the “Act”), the insolvency provision, and certain farm and other business indebtedness. If the cancellation of debt pertains to your primary residence and you don’t remember under the Act, you might be healthy to exclude the income under the insolvency exclusion. You are insolvent when, and to the extent, the amount of your liabilities exceed the clean value of your assets. To determine if you are ... market research, surveys and trends
Getting Rid of Nonrecourse Mortgages? - Credit Slips
It's interesting to look at some of the reader comments to the NY Times article about the rich being more likely to default on their mortgages.  A lot of them are aghast that a mortgage might not be full recourse--that one can walk away and have no personal liability.  What happened to one's word being their bond, honor, etc?   Since the onset of the mortgage crisis, some commentators (starting with  Martin Feldstein in 2008 ) have been discovering to their horror that a lot of mortgage lending is nonrecourse.  They think this situation is an invitation to moral hazard and ... market research, surveys and trends


Definition of Nonrecourse Debt |
Nonrecourse debt is a type of loan that is secured by collateral, which, if the borrower defaults on the loan, the lender can seize. Then the lender cannot request any further compensation. Generally, the collateral given is real property. The borrower, in a sense, can benefit if the value of the collateral seized is less than the loan. The borrower holds no personal liability for the loan. Generally, nonrecourse debt has uncertain revenue streams, long loan periods and high capital expenditures. Lenders will protect themselves by lending a maximum of 80 to 90 Loan to Value of the property or item used as collateral. This means ... industry trends, business articles and survey research
Recourse and Nonrecourse Debt: Basis for LLC Member's Interest in ...
This paper discusses the advantages of nonrecourse debt available through the LLC structure to explain why the LLC is attractive to investors. Paper Introduction: Recourse and Nonrecourse Debt Basis for LLC Member\'s Interest in LLC An LLC member\'s interest in being part of a limited liabilitycorporation or LLC is predicated in part on the difference betweenrecourse and nonrecourse debt and the advantages that accrue as a result ofthe latter Recourse debt is that which allows the lender to come afterthe borrower in case of borrower default Nonrecourse debt on the otherhand does not allow the lender to pursue anything ... industry trends, business articles and survey research
Atlantic Power Corporation Announces Second Quarter 2010 Results and Improved ...
(the "Company") today announced its results for the three and six months ended June 30, 2010. All amounts are in U.S. dollars unless otherwise indicated. Highlights -- NYSE dual-listing completed -- Acquisition of an interest in first wind power project -- Extending minimum dividend sustainability guidance from 2015 to 2016 -- Full year 2010 payout ratio guidance confirmed at approximately 100% -- 2011 payout ratio guidance improved to range of 80% to 90% "Our year-to-date results and outlook for the balance of the year are improved and allowed us to raise our previous full year 2010 guidance," ... market trends, news research and surveys resources
CapLease Announces Second Quarter 2010 Results
a real estate investment trust (REIT) focused on single-tenant commercial real estate investments, today announced its results for the second quarter ended June 30, 2010. Net loss to common stockholders was $(2.7) million, and funds from operations, or FFO, was $9.4 million. Second Quarter 2010 and Subsequent Event Highlights: -- Stable Revenues of $41.6 Million -- FFO of $0.17 Per Share Before Items Affecting Comparability -- Debt Reduction of $43 Million Since End of First Quarter and $70 Million Total in 2010 -- Extended Maturity of Revolving Credit ... market trends, news research and surveys resources


Dec 18, 2008 ... 1207 (1998) (describing and comparing nonrecourse debt as ...... business is not bound by a trade usage definition of “units”). ... technology research, surveys study and trend statistics
Partnership - Audit Technique Guide - Chapter 5 - Loss Limitations ...
This guide is current through the publication date.  Since changes may have occurred after the publication date that would affect the accuracy of this document, no guarantees are made concerning the technical accuracy after the publication date. Each chapter in this Audit Techniques Guide (ATG) can be printed individually. Please follow the links at the beginning or end of this chapter to return to either the previous chapter or the Table of Contents or to proceed to the next chapter. Chapter 4 | Table of Contents | Chapter 6 Chapter 5 - Table of Contents Introduction Issue:  Basis Limitations Issue:  At-Risk Limitations Issue:  ... technology research, surveys study and trend statistics
Treasury Regulations
(b) General principles and definitions--(1) Definition of and allocations of nonrecourse deductions. Allocations of losses, deductions, or section 705(a)(2)(B) expenditures attributable to partnership nonrecourse liabilities ("nonrecourse deductions") cannot have economic effect because the creditor alone bears any economic burden that corresponds to those allocations. Thus, nonrecourse deductions must be allocated in accordance with the partners' interests in the partnership. Paragraph (e) of this section provides a test that deems allocations of nonrecourse deductions to be in accordance with the partners' ...
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Tax Law (Questions About Taxes): Mortgage Debt Foregiveness Taxes ...
I own a vacation home and both my 1st and 2nd mortgages are non-recourse in South Carolina.  I am considering a short sale.  Does the fact that they are non-recourse loans exempt me from taxes on the difference between debt owed and the short sale selling price?  Or does the fact that it was not my primary residence matter most, and therefore I will owe taxes?  If so, any other suggestions to minimize the tax impact? Best Regards, Shelly Answer Shelly, Thank you for your question. 1)Does the fact that they are non-recourse loans exempt me from taxes on the difference between debt owed and the short sale ...
WikiAnswers - Home Equity and Refinancing Questions including ...
Home equity is the ownership value accumulated in a property. A refi involves restructuring a debt, usually to take advantage of lower interest rates. Total questions 16200 Supervisors Become a Supervisor ID1118940431 asked What is chase home mortgage payment address and said it was the same as Payment address for chase home mortgage 2 minutes ago ID2920717769 asked What rating did black ops get and said it was the same as What rating is black ops 34 minutes ago See more activity Top Contributors this month Kluss Theprismgroup Thylawyer Mortgage411 Mebrg Kluss Mariangels Adrien Rosalie Whalen Zbtech Kamuna Kluss Akliger C.Hainsaw