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Recourse meaning

What does Recourse mean?
Recourse describes, in finance and security documents, the right of a creditor or purchaser to look beyond the asset to another party (such as a seller, borrower, guarantor or indemnifier) for payment or reimbursement. It is a descriptive expression used across multiple contexts rather than a term generally defined by statute; its scope is set by contract. In receivables financing (factoring, invoice discounting and securitisation), a purchase “with recourse” typically entitles the purchaser to require the seller to repurchase a receivable for a defined repurchase price (a put‑back), and/or to indemnify for non‑payment or breaches. A purchase “without recourse” allocates debtor credit risk to the purchaser. In lending, “non‑recourse” limits the lender’s remedies to specified collateral; “limited recourse” restricts recovery by amount, time or source; “full recourse” permits recovery against the borrower (and any guarantor) for any shortfall. The extent of recourse is central to true sale versus secured loan characterisation and to insolvency risk allocation. Usage and effect are broadly consistent across England & Wales, Scotland, Northern Ireland and Ireland; differences lie in the mechanics of assignment/assignation and security rather than in the concept of recourse itself.
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View the related Checklists about Recourse

CHECKLISTS
Leasing or Buying from Trustees under Scottish Trust Deeds for Creditors or Interim or Permanent Trustees in Bankruptcy—Checklist

Trustee in trust deed for creditors Authority to sell or lease must be expressly stated within the trust deed for creditors. If absent, recourse is to statutory powers under: section 4 of the Trusts (Scotland) Act 1921 section 2 of the Trusts (Scotland) Act 1961 Interim trustee in bankruptcy An interim trustee in bankruptcy lacks authority to contract, sell, or lease unless the court has specifically granted that power...

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CHECKLISTS
Civil harassment claims under the Protection from Harassment Act 1997: procedure for injunctions, damages and enforcement (England and Wales)

Under the Protection from Harassment Act 1997 (PHA 1997), pursuing a course of conduct that amounts to harassment is a criminal offence; the Act also creates a civil wrong permitting claims for damages and supporting injunctions. Both the High Court and the county court may grant injunctions restraining harassment to protect individuals. Where a client cannot rely on Pt IV of the Family Law Act 1996 (FLA 1996) because eligibility criteria are not met, or where compensation is sought for anxiety caused by harassment and for any resulting financial loss, recourse may instead be available under the PHA 1997. Conversely, if the harasser and the victim are ‘associated persons’ as defined in FLA 1996, s 62(3), the FLA 1996 often provides broader and potentially more suitable remedies, particularly where occupation of the family home is in issue. Proceedings brought under the PHA 1997 are not treated as ‘family proceedings’, and applications are determined under the Civil Procedure Rules 1998, SI 1998/3132 (CPR). Criteria The relevant statutory provisions are...

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View the related News about Recourse

NEWS
Singapore: SIAC administrative decisions—DMZ v DNA [2025] SGHC 31 confirms no back-door court appeals; seek institutional reconsideration first, with challenges reserved for the award.

DMZ v DNA [2025] SGHC 31 What are the practical implications of this case? Administrative acts by arbitral bodies can be susceptible to review where neither the institution’s rules, the lex arbitri, nor the arbitration agreement expressly or implicitly bar it. Such decisions must be taken lawfully, with respect for procedural fairness, the institution’s own rules, the applicable lex arbitri and the contractual terms governing the arbitration. Where an institution issues an administrative ruling that carries no right of appeal or review, a party aggrieved by that outcome ought to invite the institution to revisit its position under an express, or an implied, power to reconsider (paras [40]–[45]). Any court challenge is unlikely to succeed if the unhappy party failed first to request reconsideration by the institution. Instead of mounting a direct challenge where the rules foreclose one, parties may allow the decision to remain in place and seek measures to neutralise its consequences. Here, the court determined that the sole permissible route to contest the decision was to...

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NEWS
ArbitrateAD: Abu Dhabi’s new arbitration centre and rules—ADGM default seat, consolidation/joinder, emergency and expedited procedures, award scrutiny, technology, and transitional regime

The team behind arbitrateAD The registry Kristin Campbell-Wilson has now taken up the role of executive director at the newly established Abu Dhabi International Arbitration Centre. Bringing more than twenty years’ international arbitration expertise, she most recently served at the SCC Arbitration Institute, first as deputy secretary general and subsequently as secretary general. Her selection clearly underscores arbitrateAD’s strong focus on streamlined case administration in practice. It likewise marks a positive step for gender balance within the sector. The court The arbitrateAD Court (the Court) exercises oversight of arbitrations conducted under the arbitrateAD Rules. Under the arbitrateAD Rules, the Court is charged with appointing arbitrators, deciding challenges to arbitrators, and scrutinising arbitral awards, among other duties and responsibilities. The Court comprises 15 leading international arbitration practitioners, with women accounting for nearly half. This varied bench has wide geographic reach, with members based across 11 jurisdictions. They include five figures from the Middle East region, four originating from the UAE, plus ten others spanning Africa, Europe, Asia...

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NEWS
UK public law weekly update: Brexit reset and Gibraltar deal; key judicial review and ECHR rulings; procurement, subsidy control, FOI and data protection—5 March 2026

In this issue: Brexit headlines Brexit SIs Post-Brexit transition guidance Constitutional and administrative law Judicial review Equality and human rights Public Procurement Subsidy control and State aid Information law Other Public Law news LexTalk®Public Law: a Lexis®Nexis community Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Brexit headlines The Foreign Affairs Committee urges a White Paper on the UK-EU reset and the publication of the Dynamic Alignment Bill. Its Third Report of Session 2024–26, From a Common Understanding to Common Ground: Building a UK EU Strategic Partnership fit for the future, assesses the government’s approach and progress on reconfiguring UK-EU relations. Aimed at shaping parliamentary scrutiny of the next phase of UK-EU engagement, it lands while discussions with the EU and internal cross-government efforts continue. The Committee concludes that, although the Lancaster House summit in May 2025 created a platform...

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View the related Practice Notes about Recourse

PRACTICE NOTES
Ireland: TUPE transfers—transferor and transferee duties, information and consultation, due diligence, ETO dismissals, and WRC remedies

Governing legislation The process of transferring undertakings is regulated by SI No 131/2003 European Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003 (Ireland) (SI No 131/2003 (IRL)), commonly known as the TUPE Regulations 2003 (IRL). These 2003 Regulations superseded SI No 306/1980 European Communities (Safeguarding of Employees’ Rights on Transfer of Undertakings) Regulations 1980 (Ireland), as later amended by SI No 487/2000 European Communities (Safeguarding of Employees’ Rights on Transfer of Undertakings) (Amendment) Regulations 2000 (Ireland). The earlier regime gave effect to the EU Acquired Rights Directive 77/187/EEC in Ireland. Relevant transfers Numerous European Court of Justice (ECJ) rulings have clarified what amounts to a transfer for the purposes of Directive 77/187/EEC and, in turn, the TUPE Regulations 2003 (IRL). A detailed review of that body of caselaw lies outside this Practice Note and is not attempted here. In essence, a transfer arises where the undertaking keeps its identity after the handover; in other words, where the undertaking is passed on as a going concern,...

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PRACTICE NOTES
HKIAC Administered Arbitration Rules 2018 (Hong Kong): awards—form, reasons, seat, costs, time limits, publication, termination, interpretation, correction, additional awards and recourse

This Practice Note sets out guidance on arbitral awards in proceedings under the Hong Kong International Arbitration Centre (HKIAC) Administered Arbitration Rules 2018 (2018 HKIAC Rules; HKIAC 2018). As explained in Practice Note: HKIAC (2018)—the HKIAC Administered Arbitration Rules—application and key features, the 2018 HKIAC Rules generally govern HKIAC arbitrations commenced on or after 1 November 2018, save where the parties agree otherwise; for HKIAC arbitrations begun before 1 November 2018, the 2013 HKIAC Rules will generally apply unless the parties agreed otherwise. For an overview of the HKIAC and how it is organised, see Practice Note: HKIAC—background to and structure of the institution. Awards in HKIAC arbitrations In line with most institutional regimes, under the 2018 HKIAC Rules a tribunal may render interim, interlocutory, or partial awards and, in addition to a final award, may issue interim awards as to costs (HKIAC 2018, art 35.1). Where the tribunal has more than one arbitrator, any award or other ruling is to be made by a majority. Failing a...

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PRACTICE NOTES
SPVs in aviation finance and leasing: subsidiaries, orphan trusts and limited partnerships—tax and insolvency remoteness, jurisdiction and registration choices, share security, payment flows, limited recourse and parent comfort

Types of special purpose vehicle and orphan trust The deployment of special purpose vehicle structures is widespread in aviation finance. They offer lenders several advantages, including tax benefits and a bankruptcy-remote platform for the financing. A special purpose vehicle (SPV), also known as a single purpose company (SPC), is a legal entity established for a limited aim; in aviation finance this is commonly to own an aircraft for a particular transaction. There are numerous forms of SPV used in aviation finance, with the principal categories being: subsidiary companies orphan trusts limited partnerships Each of these is considered below. The type of SPV selected will vary on a transaction-by-transaction basis. Subsidiary companies Subsidiary companies are typically limited liability companies incorporated in a tax-friendly jurisdiction...

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View the related Precedents about Recourse

PRECEDENTS
Precedent Deed of Limited‑Recourse Loan (Interest‑Free Unless Varied) to EBT Trustee for Share Acquisitions under Employees’ Share Schemes (England and Wales)

This Deed is dated [ insert date ] Parties [ insert full name of Trustee ] incorporated and registered in [ insert place of incorporation of the Trustee ] with company number [ insert registered number ] whose registered office is at [ insert address of registered office ] as sole trustee of the [ insert name of the EBT ] Employee Benefit Trust (the Trustee ). [ Insert full name of company ] incorporated and registered in England and Wales under company number [ insert registered number ] whose registered office is at [ insert registered office address ] (the Lender ). Background (A) By a trust deed dated [ insert date of EBT trust deed ] (the Trust Deed), the Lender created the [ insert name of EBT ] Employee Benefit Trust (the EBT ). (B) The Lender is prepared to lend monies to the Trustee, in its capacity as trustee of the EBT, on the following terms....

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PRECEDENTS
Deed of third‑party legal mortgage of land by single company chargor, bilateral, securing specific facility obligations, with assignment of insurances and property rights (England and Wales law)

This Deed is dated [ insert day and month ] 20[ insert year ] Parties [ Insert name of Chargor ], a company registered in England and Wales under number [ insert company number ], with its registered office at [ insert address ] (the Chargor); and [ Insert name of Lender ], of [ insert address ] (the Lender). Recitals: The Lender has agreed to provide a loan facility to the Company (as defined below) on the terms and conditions specified in the Facility Agreement (as defined below). The availability of that facility to the Company is conditional upon the Chargor entering into this Deed to grant security in favour of the Lender for the Secured Obligations (as defined below). ...

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PRECEDENTS
Deed of All-Monies Cross-Guarantee and Indemnity by Group Companies in Favour of Lender (Joint and Several; Bilateral) - England and Wales

This Deed of guarantee and indemnity is executed on [ insert day and month ] 20[ insert year ] Parties 1 [ Insert name of Guarantor ], a company incorporated in England and Wales with registered number [ insert company number ], having its registered office at [ insert address ] ( Company A ); 2 [ Insert name of Guarantor ], a company incorporated in England and Wales with registered number [ insert company number ], having its registered office at [ insert address ] ( Company B ); Company A and Company B together (the Obligors ), and 3 [ Insert name of Lender ], of [ insert address ] (the Lender ). bACKGROUND (A) The Lender has extended facilities to the Obligors under a range of financing arrangements. (B) The Lender’s provision of those facilities to the Obligors, or to any of them, is conditional upon the Obligors executing this Deed for the benefit of the Lender...

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View the related Q&As about Recourse

Q&As
Section 21: landlord entry without court—deposit, gas/EPC

In such situations, if a tenant declines to grant the landlord entry to examine the premises, this amounts to a breach of the lease terms, as the lease contains a provision giving the landlord the right to enter the property for inspection, following a stated period of notice thereafter...

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Q&As
Lump-sum holiday/sick arrears as employer pension contributions?

For guidance on entitlement to statutory annual leave under the Working Time Regulations 1998 (SI 1998/1833), and on methods of calculation, refer to Practice Notes: Statutory paid holiday—the right and Statutory paid holiday—calculating holiday pay. For details on recourse where statutory sick pay (SSP) and contractual sick pay are not paid, see the ‘Remedies’ section of Practice Note: Sick pay...

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Q&As
Post‑exchange bankruptcy of tenant in common: innocent co‑owner’s liability and recourse

This Q&A considers a tenant who is in a tenancy in common with another tenant, who petitions for bankruptcy after exchange and before the completion of a sale of the property that the two tenants own. It examines the first co-owner’s exposure to the purchaser and what remedies he or she may pursue against the other co-tenant if the purchaser serves a notice to complete. As to contractual responsibility, this turns on the contract’s terms. By way of illustration, if the sellers have joint and several obligations, the innocent party is nonetheless answerable to the purchasers. For further details, see Practice Note: Joint, several, and joint and several liability...

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