Definitions for "Without Recourse"
A term used in endorsing a negotiable instrument excluding the endorser from responsibility should the obligation not be paid.
A company is not responsible to a third party when an account or financial instrument is not honored by the debtor with the creditor's only recourse being to the debtor's property.
A phrase followed by the signature of a drawer or endorser of a negotiable instrument, whereby he disclaims liability to subsequent holders in the event of non-payment. Such an endorsement constitutes a warranty of the genuineness of the instrument, and therefore cannot waive liability if any prior signature is proved to be a forgery.
A lending expression that means loans or leases that have been acquired from an original lender with no guaranty from the originator.
A mortgage in which the Lender will not pursue personal liability against the borrower. The Lender's security is in the real estate being financed.
A term indicating that a bank may not demand repayment by the beneficiary if for any reason the bank is not reimbursed for its payment to the beneficiary. Therefore, this type of payment is considered a free and clear payment.