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]