accommodation bill


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.

Collins dictionary of law. . 2001.


accommodation bill
United Kingdom
A form of bill of exchange where the party signing as drawer, acceptor or indorser does not receive value (or consideration) for doing so and accepting primary liability under the bill. Typically, accepting or indorsing a bill without value is done to "accommodate" another party who may use the bill to raise finance, for example, a bankers' acceptance.
Related terms

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • Accommodation bill — Accommodation Ac*com mo*da tion, n. [L. accommodatio, fr. accommodare: cf. F. accommodation.] [1913 Webster] 1. The act of fitting or adapting, or the state of being fitted or adapted; adaptation; adjustment; followed by to. The organization of… …   The Collaborative International Dictionary of English

  • accommodation bill — or note See accommodation paper …   Black's law dictionary

  • accommodation bill — noun or accommodation paper : a bill, draft, or note made, drawn, accepted, or endorsed by one person for another without consideration to enable that other to raise money or obtain credit thereby * * * a bill, draft, or note made, drawn,… …   Useful english dictionary

  • accommodation bill — A bill of exchange signed by a person (the accommodation party) who acts as a guarantor. The accommodation party is liable for the bill should the acceptor fail to pay at maturity. Accommodation bills are sometimes known as windbills or windmills …   Accounting dictionary

  • accommodation bill — A bill of exchange signed by a person (the accommodation party) who acts as a guarantor. The accommodation party is liable for the bill should the acceptor fail to pay at maturity. Accommodation bills are sometimes known as windbills or windmills …   Big dictionary of business and management

  • accommodation bill — /əkɒməˈdeɪʃən bɪl/ (say uhkomuh dayshuhn bil) noun a bill of exchange endorsed by one person for another, to enable the second person to obtain credit or raise money by giving extra security. Also, US, accommodation draft, accommodation note …   Australian English dictionary

  • accommodation bill — a bill, draft, or note made, drawn, accepted, or endorsed by one person for another without consideration, to enable the second person to obtain credit or raise money. Also called accommodation paper. [1815 25] * * * …   Universalium

  • accommodation bill — noun A bill of exchange endorsed by a reputable third party acting as a guarantor, as a favor and without compensation …   Wiktionary

  • accommodation bill — /əˌkɒmə deɪʃ(ə)n ˌbɪl/ noun a bill of exchange where the person signing (the ‘drawee’) is helping another company (the ‘drawer’) to raise a loan …   Marketing dictionary in english

  • accommodation bill — /əˌkɒmə deɪʃ(ə)n ˌbɪl/ noun a bill of exchange where the person signing (the ‘drawee’) is helping another company (the ‘drawer’) to raise a loan …   Dictionary of banking and finance


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