Appellant Sambok added the words “with recourse” in the indorsement of a note. He argued that the note contemplates a qualified indorsement.
Whether or not the contention of Sambok is meritorious.
NO. “Recourse” means resort to a person who is secondarily liable after the default of the person who is primarily liable. Appellant, by indorsing the note “with recourse” does not make itself a qualified indorser but a general indorser who is secondarily liable. The effect of such indorsement is that the note was indorsed without qualification. A person who indorses without qualification engages that on due presentment, the note shall be accepted or paid, or both as the case may be, and that if it be dishonored, he will pay the amount thereof to the holder.