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Since there is limited or no recourse for the project’s sponsors, business shareholders are generally liable up into the extent in their shareholdings. The project stays off-equilibrium-sheet for your sponsors and for the government.
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A essential difficulty in non-recourse funding is whether or not situations may well crop up important link through which the lenders have recourse to some or each of the shareholders’ belongings. A deliberate breach on the read this article Section of the shareholders could provide the lender recourse to assets.
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