WITHOUT RECOURSE

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Without Recourse: a formula used to disclaim responsibility for future nonpayment, especially of a negotiable financial instrument. Without recourse is a phrase that has several meanings. In a general sense, without recourse pertains to when the buyer of a promissory note or other negotiable instrument assumes the risk of default. Without recourse can also refer to a financing arrangement where the dealer’s maximum possible liability is limited to warranties pertaining to the quality of an installment contract.