Mark for follow up Question 11 of 75. Jonathan has a nonrecourse loan financed by his bank, this means the O Lender has no right to seek payment from the borrower for any debt in excess of collateral. Borrower will not recognize gain or loss on the disposition of the property. O Lender may not foreclose or repossess the property that secures the debt. Borrower may recognize ordinary income from the cancellation of debt. Mark for follow up Question 12 of 75