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Simply because there is limited or no recourse on the project’s sponsors, enterprise shareholders are usually liable up on the extent in their shareholdings. The project stays off-harmony-sheet for that sponsors and for the government.
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A key challenge in non-recourse financing is whether conditions may occur during which the lenders have recourse to some or most of the shareholders’ property. A deliberate breach to the Portion of the shareholders might provide the lender recourse to belongings.
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