Without Recourse


Definition of "Without recourse"

Cisco Cardoso
  Rio Properties & Investments LLC

The company is not responsible to a third party if an account or financial instrument is dishonored by the debtor. The creditor's recourse is solely to the debtor's property. An example is when a company sells accounts receivable to a factor to obtain money. If the customer defaults, the factor cannot recover the amount due from the company.



Search Real Estate Glossary

Related Real Estate Glossary terms

Related Real Estate FAQ