A note that an accommodating party has signed and thereby assumed secondary liability for; ACCOMMODATION PAPER. Cf. GUARANTY(1). [Cases: Bills and Notes 49, 122. C.J.S. Bills and Notes; Letters of Credit §§ 24–25.]
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An indorsement to an instrument by a third party who acts as surety for another party who remains primarily liable. See ACCOMMODATION PAPER. [Cases: Bills and Notes 236. C.J.S. Bills and Notes; Letters of Credit § 63.]
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accommodation party. A person who, without recompense or other benefit, signs a negotiable instrument for the purpose of being a surety for another party (called the accommodated party) to the instrument. • The accommodation party can sign in any capacity (i.e., as maker, drawer, acceptor, or indorser). An accommodation party is liable to all parties
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accommodation paper. A negotiable instrument that one party cosigns, without receiving any consideration, as surety for another party who remains primarily liable. • An accommodation paper is typically used when the cosigner is more creditworthy than the principal debtor. — Also termed accommodation bill; accommodation note. [Cases: Bills and Notes 49, 96. C.J.S. Bills and
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One who signs a note as a surety. See ACCOMMODATION(2); accommodation indorser under INDORSER. [Cases: Bills and Notes 49, 122. C.J.S. Bills and Notes; Letters of Credit §§ 24–25.]
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maker. 1. One who frames, promulgates, or ordains (as in lawmaker). 2. A person who signs a promissory note. See NOTE(1). Cf. COMAKER. [Cases: Bills and Notes 48, 118. C.J.S. Bills and Notes; Letters of Credit§§ 23, 80–82.] 3. DRAWER. accommodation maker. One who signs a note as a surety. See ACCOMMODATION(2); accommodation indorser under
An indorsement by a person who signs outside the chain of title and who therefore is neither a holder nor a transferor of the instrument. • An irregular indorser is generally treated as an accommodation party. UCC § 3-205(c). — Also termed anomalous indorsement; full indorsement. See ACCOMMODATION PARTY. [Cases: Bills and Notes 191, 294.
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A type of defense that is good against any possible claimant, so that the maker or drawer of a negotiable instrument can raise it even against a holder in due course. • The ten real defenses are (1) fraud in the factum, (2) forgery of a necessary signature, (3) adjudicated insanity that, under state law,