With recourse: Difference between revisions
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imported>Doug Williamson (Expand the page. Source: ACT syllabus.) |
imported>Doug Williamson (Classify page.) |
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== See also == | == See also == | ||
* [[Forfaiting]] | * [[Forfaiting]] | ||
* [[Norm]] | |||
* [[Payments and payment systems]] | |||
* [[Recourse]] | * [[Recourse]] | ||
* [[Without recourse]] | * [[Without recourse]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:The_business_context]] | |||
[[Category:Corporate_finance]] | |||
[[Category:Investment]] | |||
[[Category:Long_term_funding]] | |||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Manage_risks]] | |||
[[Category:Risk_frameworks]] | |||
[[Category:Risk_reporting]] | |||
Latest revision as of 16:29, 16 December 2021
- Where the wording of the agreement between a borrower and lender means that the borrower is liable to repay the lender. This is obviously the norm, and most lending is on a with recourse basis. However, in international trade there are various specialised lending products where this does not apply and the borrowing is ‘without recourse’- see below for definition of without recourse.
- Alternatively, where a party to a negotiable instrument has signed or endorsed that instrument without disclaiming liability to subsequent holders, then that party will be liable to subsequent holders in the event of non-payment at maturity.
