irregular indorsement. Conditional sale. It is also called without recourse or at the endorsee's own risk. English-Arabic economic glossary. Facultative Endorsement: When an endorser waives the condition of notice of dishonor. The denial of recourse against a prior endorser must be found in express words. This type of check is ordinarily made payable to the lawyer and client jointly. (1) Any endorser can exclude personal liability by endorsing “sans recourse” i.e. In financial transactions, the words "without recourse" disclaim any liability to the subsequent holder of a financial instrument. It is unusual for a bank to accept a check that has the words "without recourse" in the endorsement … An assignment of a note is generally regarded as constituting an endorsement, and the mere fact that an instrument is assigned by express statement on the back does not make the signer a qualified endorser. English Portuguese translation in context, Free: Learn English, French and other languages, Reverso Documents: translate your documents online, Learn English watching your favourite videos, All English definitions from our dictionary. Endorsement without recourse. Check endorsement without recourse keeps a bank from withdrawing the amount of the check, as well as any fees, from a depositor's account even if the deposited check bounces for insufficient funds. : the right to demand payment from the endorser or drawer of a negotiable instrument see also recourse note at note compare non-recourse NOTE: Under Article 3 of the Uniform Commercial Code, the phrase without recourse on a negotiable instrument limits the liability of the endorser or drawer. WITHOUT RECOURSE. Often the purchaser of such a note will acquire it at a substantial discount from the face value of the note, in recognition that the purchaser can only seek to collect the money from the original maker of note. Maker. Any words other than "without recourse" should clearly be of similar meaning. Recourse and Nonrecourse The term ‘Recourse’ means to have the right to seek damages for failure to perform. Facultative endorsement: UCC § 3-205(c). A blank endorsement, the most common type, is endorsed by the payee and presented to the bank for cash or deposit. If the bank accepts such a check and deposits the stated amount in the endorser's account, the bank will have no right to … 172; 6 2. Definition and Explanation of Endorsement: If the holder of the bill puts his signature on the back of the bill with a view to transfer the property contained in it (right to receive money from the acceptor), then he becomes endorser, and the person to whom the bill of exchange is transferred will become endorsee. A phrase used by an endorser (a signer other than the original maker) of a negotiable instrument (for example, a check or promissory note) to mean that if payment of the instrument is refused, the endorser will not be responsible. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. C will have to attempt to collect the money from A. If A's bank refuses to pay C the check amount because A has insufficient funds in his checking account, C cannot demand payment from B. A person might agree to accept a check without recourse if the person believes she could collect the money in question. Because the payee's name is on the back of the note, he is presumed to be an unqualified endorser unless there are words that express a different intention. Definition of SANS RECOURSE ENDORSEMENT: See blank endorsement . With a qualified endorsement, the endorser will not assume any responsibility for paying the check if it is returned for any reason. Who of the following is primarily liable on a promissory note? (2) If the holder of a negotiable instrument, without the consent of the endorser destroys the instrument or in any way prejudices the holder (Section 40 ). A financial institution will not accept this type of endorsement. It simply consists of the signature of the endorser on the endorsement. An indorsement by a person who signs outside the chain of title and who therefore is neither a holder nor a transferor of the instrument. Shipl. . indorsement without recourse. An endorsement "without recourse" eliminates the endorser's obligation to pick up the check if it is returned for insufficient funds. English-Chinese law dictionary (法律英汉双解大词典). The party who sells a contract for another is called the: Judge. Facultative endorsement: When the endorser expressly gives up some of his rights under the negotiable instrument, the endorsement is called a ‘facultative’ endorsement. • An irregular indorser is generally treated as an accommodation party. The type of language used on the endorsement plays an important role in whether the investor has any recourse against the seller or prior note holder for repayment of the note. endorsement with the words without recourse "金山词霸2003法学大词典": 无追索权的背书. Any words other than "without recourse" should clearly be of similar meaning. While this type of indorsement may limit the indorsers liability to subsequent holders of the instrument, it does not affect or limit the ability to further transfer or negotiate the instrument. Thus, “Pay X or order sans recourse” or “Pay X without recourse to me” or “Pay X or order at his own risk” is examples of this type of endorsement. An endorsement that says that the endorser does not want to incur any liability if the document is not honoured. Vide Sans Recours and Indorsement; Chit. It is a type of endorsement when the endorser just signs on the instrument without mentioning the name of the person in whose favour the endorsement is made. Special Endorsement – Where the endorser puts his sign and writes the name of the person who will receive the payment.