I was told that there is a way to endorse a check without liability on me if the check is no good. How? Without recourse? Endorsement cancelled? If not, what do those mean?
An endorsement made without recourse offers an endorser some protection from liability if the check is not honored. However, the without recourse endorsement isn't protection against an earlier forged endorsement or forged drawer's (issuer's) signature.
Your ability to transfer a check that you've endorsed without recourse to a bank for cash or deposit, is limited or non-existent. The bank would not knowingly accept such an endorsement in all but very limited cases, and is likely to have a provision in its deposit agreement entitling it to a clean endorsement in spite of what you might write on the check. As for "endorsement canceled", it has no real significance today.
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An endorsement made without recourse offers an endorser some protection from liability if the check is not honored. However, the without recourse endorsement isn't protection against an earlier forged endorsement or forged drawer's (issuer's) signature.