party to a negotiable instrument who signs a note or bill as maker, acceptor,
or endorser, to accommodate another party and enhance the credit worthiness
of the paper.
Uniform Negotiable Instruments Law (Art. II, Sec. 29) specified that an
accommodation party is one who thus signed an instrument "without receiving
Uniform Commercial Code (Sec. 3-415(1)) has eliminated such reference
to non receipt of consideration as the distinguishing feature of an accommodation
party. It is no longer determining
that he signed gratuitously. The
accommodation party is a surety or guarantor whose obligation is supported
by any consideration for which the instrument is taken before due.
If he signs as accommodation maker or acceptor, the accommodation
party is bound without prior resort to his principal.
If he signs as accommodation endorser, he is bound only after presentment,
notice of dishonor, and protest.
But the accommodation party who pays the instrument becomes subrogated
to the rights of the holder paid, as surety, as to recourse on the instrument.