Endorsed with no recourse???

Question

What does that phrase mean? A friend who was wiped out by Katrina got and insurance check to him and SBA, he signed it and sent it to SBA to apply to his new loan. SBA stamped it "Endorsed with no recourse" on it. He is confused as to what that means.

Answer 1

it means that if the item isn't paid for some reason, that SBA can not be sued for the money.

In essence, SBA simply assigned its rights to your friend.

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insurance "checks" frequently aren't real checks, but drafts issued by an adjuster or service. The home office of the insurance company doesn't decide whether to actually pay until it reviews the paperwork.