A secured debt for which the debtor has no liability beyond the value of the collateral pledged. Nonrecourse debt converts to recourse debt in a Chapter 11 case unless the property secured by the debt is sold under Section 363, the property is sold under a plan, or the holder of the debt makes the 1111(b) election.

Bankruptcy Code ยง 1111(b)(1). See also 1111(b) Election, Exploding Guaranty, Nonrecourse Carveout, Springing Guaranty.

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