Skip to content

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 A

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.] [Blacks Law 8th]