Without recourse: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Link with new With recourse page, expand per ACT syllabus.) |
imported>Doug Williamson (Layout.) |
||
| Line 1: | Line 1: | ||
1. | |||
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. | |||
2. | |||
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. | |||
3. | |||
Normally, the lender/ holder of the negotiable instrument has the ability to claim from an alternative source, usually a guarantor, when ‘without recourse’ applies. | |||
Revision as of 11:53, 13 May 2016
1.
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.
2.
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.
3.
Normally, the lender/ holder of the negotiable instrument has the ability to claim from an alternative source, usually a guarantor, when ‘without recourse’ applies.
