A leveraged credit linked note (LCLN) is a note that is secured by collateral posted, but for which the borrower (issuer of the note) cannot be held liable in its personal capacity- that is, recourse to a issuer’s own holdings (assets) is not possible.

In other words, the maximum amount that a lender can attain in case of non-fulfillment or non-performance by the issuer is defined by the value of the collateral at most. Other than that, a borrower has no recourse right to a lender’s non-pledged assets.