Without responsibility or liability. Every one who indorses a note or check is responsible for its payment, if its original signer does not pay it. This responsibility can be avoided by the indorser prefixing the words "without recourse" to his signature.
It does not follow, however, that the instrument would always be accepted in this form. In fact, there are only certain conditions under which this may be done. To illustrate, a note broker would not wish to assume liability in case of a note made payable to him by indorsing the same, and, in such an instance, he could resort to the words " without recourse," which would be usually acceptable to the purchaser of the note, he buying upon the strength alone of the maker and previous indorsers, if any. Had the note been given to John Smith in the course of business, and John Smith, having received a direct benefit on account thereof, resold the note, the purchaser would then wish John Smith to incur all the liability of an indorser, and would not usually permit him to avoid recourse.