52. Endorser who excludes his own liability or makes it conditional.- The endorser of a negotiable instrument may, by express words in the endorsement, exclude his own liability thereon, or make such liability or the right of the endorsee to receive the amount due thereon depend upon the happening of a specified event, although such event may never happen. Where an endorser so excludes his liability and afterwards becomes the holder of the instrument all intermediates endorsers are liable to him.
Illustration
(a) The endorser of a negotiable instrument signs his name, adding the words “without recourse”. Upon this endorsement he incurs no liability. (b) A is the payee and holder of a negotiable instrument. Excluding personal liability by an endorsement, without recourse, he transfers the instrument to B, and B endorses it to C, who endorses it to A. A is not only reinstated in his former rights, but has the rights of an endorsee against B and C.
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