is a term often used in financial or legal contexts, particularly in negotiable instruments like promissory notes or checks. When a negotiable instrument is transferred or endorsed “without recourse”, it means that the person transferring or endorsing it is not assuming any liability or responsibility for the payment of the instrument.
In simpler terms, if a negotiable instrument is endorsed or transferred “without recourse”, the recipient of the instrument cannot hold the transferor liable if the payment isn’t made by the issuer. It implies that the person transferring it is not guaranteeing the payment or assuming any responsibility for any potential issues related to the instrument.
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