when a financial instrument contains the words without recourse the endorser is released from future claims if a signed check includes without recourse the endorser is not subject to liability should the check bounce due to insufficient funds 
for example assume alice makes out a check to bob the payee bob decides to pay off his debt to maggie by endorsing the check which involves writing his name on the back exactly as it appears on the front of the check once the back of the check is signed it becomes negotiable and allows for the transfer of money ordered by the check in addition bob adds without recourse on the back of the check the endorser bob will not assume any responsibility for paying the check if it is returned for insufficient funds if alice s bank refuses to pay maggie s bank the check amount due to insufficient funds in alice s account maggie cannot demand payment from bob a promissory note is a debt instrument like a mortgage loan that contains a written promise by the buyer to pay the seller a definite sum of money if the loan is secured without recourse the lender often uses the mortgaged property as collateral the lender cannot hold the buyer liable however will instead recover the collateral without recourse is evident in certificates of deposit cds and securities where the seller is not required to indemnify the investor for any losses suffered such as those caused by market fluctuations 