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Recourse

Law Library - American Law and Legal InformationFree Legal Encyclopedia: Purge to Recovered Assets Incentivization Fund (RAIF)

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PAPER, such as a check or promissory note, to receive payment on it from anyone who has signed it if the individual who originally made it is unable, or refuses, to tender payment.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.

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