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LSDefine

Simple English definitions for legal terms

accommodation party

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A quick definition of accommodation party:

An accommodation party is someone who signs a piece of paper (called a negotiable instrument) to help someone else out. They don't get anything in return for doing this. The person they are helping is called the accommodated party. The accommodation party is responsible for paying the debt if the accommodated party can't. But the accommodated party promises to pay the debt and to make sure the accommodation party doesn't lose any money because of it.

A surety is someone who promises to pay someone else's debt if they can't. They are different from a guarantor because they are directly responsible for paying the debt. They don't get paid for doing this.

A more thorough explanation:

An accommodation party is a person who signs a negotiable instrument, such as a promissory note or a check, without receiving any benefit or compensation. The purpose of signing is to act as a surety for another party, known as the accommodated party. The accommodation party can sign in any capacity, such as a maker, drawer, acceptor, or indorser.

The accommodated party is responsible for paying the note or draft and indemnifying the accommodation party for any losses incurred in having to pay it. The accommodation party is liable to all parties except the accommodated party.

John signs a promissory note for his friend, Tom, who needs a loan to start a business. John does not receive any benefit or compensation for signing the note. John is the accommodation party, and Tom is the accommodated party. If Tom fails to pay the loan, John will be responsible for paying it and seeking reimbursement from Tom.

Another example is when a parent co-signs a student loan for their child. The parent is the accommodation party, and the child is the accommodated party.

These examples illustrate how an accommodation party assumes liability for another party's debt or obligation without receiving any benefit or compensation.

accommodation paper | accommodation surety

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JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
8:57
There’s someone I found on here with the username threeoutchange and if my understanding is correct that’s a reference to the debut album by a pretty cool 90s-00s Japanese band called Supercar. I geeked a little
8:57
It could just be a baseball reference I don’t get though lol
Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
Dkk
9:07
@renard99: man, hard to find.
Dkk
9:07
@glovediedthisishismom: Congrats on the snow.
Dkk
9:16
@renard99: Poetic and nice.
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