An endorsement in which the endorser does not guarantee that an instrument will be accepted and paid by the drawer or maker is referred to as a ________.

Question

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A qualified endorsement is an endorsement in which the endorser gives up their right to hold the endorser liable for payment if the instrument is dishonored. This type of endorsement may include phrases such as "without recourse" or "payable only at (bank name)". In other words, the endorser is not guaranteeing payment and is thus limiting their liability.

An Endorsement in Which the Endorser Does Not Guarantee That