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Due to the fact there is limited or no recourse to your project’s sponsors, firm shareholders are generally liable up for the extent in their shareholdings. The project continues to be off-balance-sheet for that sponsors and for The federal government.

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A key problem in non-recourse financing is whether situation may come up where the lenders have recourse to some or every one of the shareholders’ property. A deliberate breach to the Portion of the shareholders may possibly give the lender recourse to belongings.

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