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.
See the Non-Recourse Loan entry.
The company is not responsible to a third party if an account or financial instrument is dishonored by the debtor. The creditor's recourse is solely to the debtor's property.
By completing the endorsement with the clause "without recourse", the endorsee irrevocably waives his right to claim payment from the endorser even if the debt is not honoured at maturity.
Words used in endorsing a note or bill to denote that the future holder is not to look to the endorser in case of nonpayment.
A finance term. A mortgage securing a note without recourse allows the lender to look only to the security (property) for repayment in the event of default, and not personally to the borrower.
Without the lender having any right to seek payment or seize assets in the event of nonpayment from anyone other than the party (such as a special-purpose entity) specified in the debt contract.
A clause in a contract whereby the lender, in the event of non-payment, has no right to seek payment or seize assets from anyone other than the party specified in the debt contract. Français: Sans recours Español: Sin recurso
Giving the lender no right to seek payment or seize assets in the event of nonpayment from anyone other than the party specified in the debt contract (such as a special-purpose entity).
A term used in the secondary mortgage market. It is a clause in a sales contract by which a lender sells mortgage loans to an investor. It means the seller/lender is under no obligation to reimburse the buyer/investor for any losses resulting from the purchased loans. See with full recourse.
A phrase preceding the signature of a drawer or endorser of a negotiable instrument; signifies that the instrument is passed onto subsequent holders without any liability to the endorser in the event of nonpayment or nondelivery.
A phrase used for the endorsement of a note that indicates the future holder is not to look to the endorser in case of non‑payment.