recourse

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Related to With Recourse: Without recourse

Recourse

The right of an individual who is holding a Commercial Paper, such as a check or promissory note, to receive payment on it from anyone who has signed it if the individual who originally made it is unable, or refuses, to tender payment.

Recourse is the right of the holder to recover against a prior endorser, who is secondarily liable. When a check is endorsed without recourse, it signifies that the endorser will not be liable to pay in the event that payment is refused.

recourse

n. the right to demand payment to the writer of a check or bill of exchange. (See: check, bill of exchange)

recourse

noun avail, benefit, confugere, correccive device, corrective measure, device, disposal, legal redress, means, redress, remedy, resource, se applicare, se conferre
Foreign phrases: Electa una via, non datur recursus ad alleram.He who has chosen one course cannot have reeourse to another.
See also: alternative, option, tool

recourse

the right to demand payment, especially from the drawer or indorser of a BILL OF EXCHANGE or other NEGOTIABLE INSTRUMENT when the person accepting it fails to pay. Hence, without recourse is a qualified indorsement on such a negotiable instrument, by which the indorser protects himself from liability to subsequent holders.
References in periodicals archive ?
First, small business loans sold with recourse would be reported in accordance with GAAP on the regulatory reports filed by insured depository institutions.
Regarding the rationale for the regulatory reporting requirements for asset sales with recourse, the banking regulators historically have considered the existence of any risk that may be borne by the seller as the determining factor in deciding if sales treatment is appropriate.
Finally, when "sales" can only be made with recourse, as opposed to selling assets at enough of a discount to insulate the purchaser of the assets from all but catastrophic losses, banks may tend to sell only the highest quality assets and keep those of lower quality.