What does a "without recourse" endorsement signify?

The "without recourse" endorsement is a specific type of endorsement used in financial transactions involving checks or negotiable instruments. When an endorser places a "without recourse" endorsement on a check, it indicates that the endorser is not accepting liability for the payment of the check. This means that if the check is not honored by the bank (for example, if it bounces due to insufficient funds), the endorser cannot be held responsible for the payment.

This endorsement is important for individuals or entities that want to transfer ownership of a check or negotiable instrument without assuming the risk associated with potential non-payment. By using this endorsement, the endorser effectively protects themselves from any financial repercussions that may arise from the check being dishonored.

In this context, the other options either suggest full liability or restrictions that do not align with the purpose of a "without recourse" endorsement. This characteristic makes the correct answer particularly pertinent to understanding the protections offered within financial transactions.