Full Recourse Debt

Borrow money from Tommy Two Guns...that’s definitely a full recourse debt.

For most loans, you have to put up collateral. Your mortgage has your house as collateral. Your car loan has your vehicle. If you don’t pay back the loan, the lender can seize the collateral as a form of repayment.

With full recourse debt, the lender can go beyond the stated collateral to pay off a defaulted loan. Basically, they can keep taking stuff until the debt is 100% satisfied.