Who Is an Accommodating Party?

An accommodation party is a legal term used in commercial transactions. It refers to an individual who has agreed to act as guarantor to assist another's access to a loan or credit extension. ... Third-party guarantor. Surety.

Who is accommodation party?

Accommodation Party is a person who signs negotiable instrument or commercial paper or agreement for the purpose of being a surety for another party (called accommodated party) to the instrument to help accommodated party obtain a loan or an extension of credit.

Who is an accommodation party in negotiable instrument?

- An accommodation party is one who has signed the instrument as maker, drawer, acceptor, or indorser, without receiving value therefor, and for the purpose of lending his name to some other person.