Without recourse
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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.
