Definition of "Without recourse"

Debbie Layman real estate agent

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Debbie Laymanelite badge icon

Village Real Estate HBV

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.

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