Recourse

In the context of a secured note, this legal agreement gives the lender the right to seize a borrower’s assets in the event that the borrower has defaulted on the loan. Should the borrower’s pledged assets not cover the loan, the lender may seek a Deficiency Letter from the SEC for the right to seize unpledged assets, levy bank accounts or garnish wages. Note: deficiency letters are used for additional purposes than used in this definition. Pertains to debt.

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