Accommodation Paper Definition

noun

A bill of exchange cosigned by one party as maker, acceptor, or endorser without requiring collateral or a fee, in order to lend his or her credit reputation to the second party.

Webster's New World

A negotiable instrument that one co-signs as a surety as an accommodation to another party, who remains primarily liable without receiving any benefit, compensation, or consideration. See also accommodation party.

Webster's New World Law

(commerce, law) A note, bill, or draft accepted or endorsed by a person to allow a second person to raise money or obtain credit.

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