Without recourse: Difference between revisions
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imported>Doug Williamson (Linked to The Treasurers Handbook - Payments and payment systems) |
imported>Doug Williamson (Link with new With recourse page, expand per ACT syllabus.) |
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A phrase followed by the signature of a drawer or endorser of a negotiable instrument, whereby liability is disclaimed to subsequent holders in the event of non-payment. | #Where the borrower under a specialised lending product is not liable to repay the lender, usually because a third party has taken over that obligation. | ||
#A phrase followed by the signature of a drawer or endorser of a negotiable instrument, whereby liability is disclaimed to subsequent holders in the event of non-payment. | |||
#Normally, the lender/ holder of the negotiable instrument has the ability to claim from an alternative source, usually a guarantor, when ‘without recourse’ applies. | |||
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* [[Recourse]] | * [[Recourse]] | ||
* [[Payments and payment systems]] | * [[Payments and payment systems]] | ||
* [[With recourse]] | |||
Revision as of 12:26, 10 February 2015
- Where the borrower under a specialised lending product is not liable to repay the lender, usually because a third party has taken over that obligation.
- A phrase followed by the signature of a drawer or endorser of a negotiable instrument, whereby liability is disclaimed to subsequent holders in the event of non-payment.
- Normally, the lender/ holder of the negotiable instrument has the ability to claim from an alternative source, usually a guarantor, when ‘without recourse’ applies.
