The money Ward borrowed from Madison Guaranty was in the form of a "non-recourse loan".

Several recent assured tenancy issues featured non-recourse loans from banks to shareholders.

Why should investors risk money when they could obtain 20% returns from assured tenancy schemes with non-recourse loans and guaranteed by the bank?

Some of this money would come in the form of "non-recourse loans," meaning that the funds would be protected from bad consequences if they default.

Yet, research into the structure of the program shows that the overbidding incentives in non-recourse loans are subtle.

Yet for all the criticism of this subsidy, the truth is that the plan's reliance on non-recourse loans is not an especially radical idea.

When a non-recourse loan is used, there is generally no recourse, or liability, to the underlying insured or their estate.

A non-recourse loan is secured by the value of property (usually real estate) owned by the borrower.

In some jurisdictions, first mortgages are non-recourse loans, but second and subsequent ones are recourse loans.

This turns a pure non-recourse loan into a limited recourse loan.