accommodation party

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 except the accommodated party, who impliedly agrees to pay the note or draft and to indemnify the accommodation party for all losses incurred in having to pay it. See SURETY. [Cases: Bills and Notes 49, 96, 122. C.J.S. Bills and Notes; Letters of Credit §§ 24–25, 63.]

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词条贡献者

资深译员Jenny，国内名牌大学法律英语专业，专注翻译各种与重组、破产及重整有关的法律文件。