From ACT Wiki
- Where the wording of the agreement between a borrower and lender means that the borrower is liable to repay the lender. This is obviously the norm, and most lending is on a with recourse basis. However, in international trade there are various specialised lending products where this does not apply and the borrowing is ‘without recourse’- see below for definition of without recourse.
- Alternatively, where a party to a negotiable instrument has signed or endorsed that instrument without disclaiming liability to subsequent holders, then that party will be liable to subsequent holders in the event of non-payment at maturity.