recourse


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Related to recourse: Without recourse, have recourse to

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Paper, such as a check or promissory note, to receive payment on it from anyone who has signed it if the individual who originally made it is unable, or refuses, to tender payment.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 ?
752 prescribes how liabilities affect a partner's basis, and its regulations discuss the definitions of recourse vs.
The holders of the recourse, within the meaning of law, were the following:
A borrower faces full recourse liability if it violates restrictions on sale of the property or interests in the borrower or on secondary financing as described in the loan documentation (commonly referred to as due-on-sale and due-on-encumbrance clauses).
The revised rule provides for a multilevel, ratings-based approach for agreements involving recourse, direct credit substitutes, and residual interests.
The regulators recognize this problem and have indicated unofficially that if a repurchase is not automatic, in the event of default, and the risk of repurchase can be controlled by the seller, the transaction is not a recourse arrangement.
When a debt is partially recourse and partially nonrecourse, it is reasonable to assume that a settlement of the debt, whether by the payment of a lump sum in cash or by a transfer of property, will first be allocated to the nonrecourse portion of the debt.
Interagency guidance issued May 23, 2002, on implicit recourse provided to asset securitizations.
It is unlikely, from a state law standpoint, that the general partner would be released from personal liability by the firm's creditors for the business's recourse debts.
His recourse factor charged an extra 1% for every 10 days beyond 30 days that the receivable was due.
Under a recourse arrangement, a bank typically commits to cover any initial losses on loans that may occur up to a contractually agreed upon amount.
Other recourse arrangements have been fashioned involving sales of mortgage and other types of loans.
The courts have found that the offsetting payment structure in a true circular transaction has meant that a default by one party would lead each of the others to default in turn, making it unlikely that any of the parties within the circular transaction (even those with recourse rights) would disrupt the payment chain.