Pete payee specially indorses a note payable to his order


Pete Payee specially indorses a note payable to his order and also uses the words "without recourse." What is the effect of the words "without recourse" here?

A) None, because Pete has primarily liability on the note

B) Pete has disclaims his secondary liability

C) Pete has disclaimed his liability to make the note good if maker defaults

 

D) Both B and C are correct

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Financial Accounting: Pete payee specially indorses a note payable to his order
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