A legal term written on a bill of exchange which signifies that the buyer accepts the risk of non-payment from a third party, rather than the seller.

Obligated to bear losses from uncollectible accounts.

A clause in a contract whereby the lender, in the event of non-payment, has no right to seek payment or seize assets from anyone other than the party specified in the debt contract.

A phrase preceding the signature of a drawer or endorser of a negotiable instrument; signifies that the instrument is passed onto subsequent holders without any liability to the endorser in the event of non-payment or non-delivery.

When drafts are negotiated without recourse, the beneficiary is relieved of responsibility to the holder of the draft to the extent that this is permissible under the contract involved and under the law governing the transaction. On the other hand, when drafts are negotiated with recourse, any bona fide holder has full recourse against the drawer o [..]

Giving the lender no right to seek payment or seize assets in the event of nonpayment from anyone other than the party specified in the debt contract (such as a special-purpose entity).

Definition A phrase meaning a borrower cannot appeal to a borrower after failing to pay debts. Rather, the lender can take the property.