A note discounted with recourse means that if the original customer fails to pay the bank the total amount due on the maturity date of the note,the company that transferred the note to the bank is liable for the full amount.

Question

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A note discounted with recourse means that the selling company retains the risk of the customer's non-payment, and therefore is liable to cover any unpaid amount in case of default.

A Note Discounted with Recourse Means That If the Original