Base Recourse Clause Samples

The Base Recourse clause defines the fundamental rights and remedies available to a party, typically a lender, in the event of a default or breach by the counterparty, such as a borrower. This clause outlines the specific actions the lender can take to recover losses, which may include seizing collateral, demanding immediate repayment, or pursuing legal action. By clearly establishing the baseline remedies, the clause ensures both parties understand the consequences of non-performance and helps allocate risk by providing a predictable framework for addressing defaults.