Without recourse

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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.

See also