accommodation party


accommodation party
accommodation party see party 1a

Merriam-Webster’s Dictionary of Law. . 1996.

accommodation party
n. A person who, without any direct or indirect benefit, compensation, or consideration, co-signs a negotiable instrument as a favor to the person who owes the money and, thus, becomes liable on it to all parties except the accommodated party who, by implication, agrees to pay the instrument and to indemnify the accommodation party for any losses incurred in paying it. This is frequently done when the creditworthiness of the accommodated party does not satisfy the person taking the negotiable instrument or extending the credit. Also called , in the case of a promissory note, an accommodation maker.

Webster's New World Law Dictionary. . 2000.


accommodation party
One who signs a commercial paper for the purpose of lending his or her name and credit to another party to the document—the accommodated party—to help that party obtain a loan or an extension of credit.

Dictionary from West's Encyclopedia of American Law. 2005.


accommodation party
One who signs a commercial paper for the purpose of lending his or her name and credit to another party to the document—the accommodated party—to help that party obtain a loan or an extension of credit.

Short Dictionary of (mostly American) Legal Terms and Abbreviations.

Look at other dictionaries:

  • accommodation party — One who signs commercial paper in any capacity for purpose of lending his name (i.e. credit) to another party to instrument. U.C.C. No. 3 415. Such party is a surety …   Black's law dictionary

  • accommodation party — The person who signs an accommodation bill as drawer, acceptor, or endorser and acts as the guarantor …   Accounting dictionary

  • accommodation party — A person who has signed a bill or note as maker, drawer, acceptor, or indorser for the purpose of lending his name to the credit of some other person. 11 Am J2d B & N § 12 1. Under the Commercial Code, absence of consideration is not a requisite… …   Ballentine's law dictionary

  • accommodation party (maker) — n. A person who signs his or her name to a note or commercial paper to lend credit to another signer, the accommodated party, without consideration and thereby assuming liability for the debt; a cosigner or surety. The Essential Law Dictionary.… …   Law dictionary

  • party — par·ty n pl parties 1 a: one (as a person, group, or entity) constituting alone or with others one of the sides of a proceeding, transaction, or agreement the parties to a contract a person who signed the instrument as a party to the instrument… …   Law dictionary

  • accommodation paper — see paper Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. accommodation paper …   Law dictionary

  • accommodation bill — a bill of exchange accepted by an accommodation party, that is, a person signing without receiving value and for the purpose of lending his name (and his credit) to someone else. An accommodation party is liable on the bill to a holder for value …   Law dictionary

  • accommodation endorsement — The act of a third person the accommodation party in writing his or her name on the back of a commercial paper without any consideration, but merely to benefit the person to whom the paper is payable or to enable the person who made the document… …   Law dictionary

  • accommodation maker — >> accommodation party. Webster s New World Law Dictionary. Susan Ellis Wild. 2000 …   Law dictionary

  • accommodation — /akomsdeyshan/ An arrangement or engagement made as a favor to another, not upon a consideration received. Something done to oblige, usually spoken of a loan of money or commercial paper; also a friendly agreement or composition of differences.… …   Black's law dictionary


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