without defalcation

without defalcation
An expression, sometimes written "without offset," in an instrument for the payment of money, intended to preclude a setoff against the amount payable under the terms of the instrument. Anno: 79 ALR 126; 98 ALR 606; 20 Am J2d Countel § 29. A phrase formerly used in promissory notes to confer or emphasize negotiability and to cut off defenses between the original parties as against holders in due course. 11 Am J2d B & N § 198.

Ballentine's law dictionary. . 1998.

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