Note Indorsed Sans Recours
Sydney Santos held a promissory note from a prior transaction. She indorsed the note to Selena Singh with the words sans recours. When the maker defaulted, Selena could not pursue Sydney for payment on the instrument.
Also known as: without recourse
Written by attorneys · grounded in primary & secondary sources — see below
An indorsement on a negotiable instrument that disclaims the indorser's liability to subsequent holders for payment of the instrument.
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Sydney Santos held a promissory note from a prior transaction. She indorsed the note to Selena Singh with the words sans recours. When the maker defaulted, Selena could not pursue Sydney for payment on the instrument.
Sydney Santos held a promissory note from a prior transaction. After an adverse judgment became final, she indorsed the note to Selena Singh with the words sans recours. When the maker defaulted, Selena could not pursue Sydney for payment on the instrument.
Stephen Shaw received a check in settlement of a disputed claim. He indorsed it sans recours before depositing it with his bank. The bank later faced a stop-payment order but could not recover from Stephen on the instrument itself.
Samuel Soto transferred a draft drawn on a foreign bank to cover legal fees. He added sans recours to the indorsement. When the draft was dishonored, the transferee had no recourse against Samuel personally under the instrument.
Scott Summers indorsed a promissory note to Sterling Dynamics with the phrase sans recours. After the maker defaulted, Sterling could not enforce the instrument against Scott even though the underlying obligation remained unpaid.
Sarah Sullivan transferred a negotiable note to Solstice Ventures. Her indorsement stated sans recours. When the note was dishonored, Solstice had no claim against Sarah on the instrument despite the loss it suffered.
It removes the indorser's liability to pay the instrument if it is dishonored. Subsequent holders therefore cannot pursue the indorser for payment.
Yes. Under UCC § 3-415(b), an indorsement stating without recourse or otherwise disclaiming liability is effective for an indorser whether the instrument is a check or another type of draft.
No. The obligation of a customer or collecting bank that transfers an item cannot be disclaimed by an indorsement stating without recourse.
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