12-33.Which type of note limits the lender's remedy to the value of the residence that serves as collateral?

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A non-recourse note is a type of loan agreement where the lender's remedy in case of default is limited to the value of the collateral (usually the borrower's home). This means that if the borrower defaults on the loan and the collateral is worth less than the amount owed, the lender cannot pursue the borrower for any additional funds. A recourse note, on the other hand, allows the lender to seek additional funds from the borrower if the collateral is not sufficient to cover the outstanding balance of the loan. An obligatory note is not a recognized term in the field of finance or lending.

12-33Which Type of Note Limits the Lender's Remedy to the Value