Accommodation Endorsement

Also found in: Financial

0.01 sec.

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—the maker—to obtain money or credit on it.

An accommodation endorsement is a loan of the endorser's credit up to the face amount of the paper.

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