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LSDefine

Simple English definitions for legal terms

accommodation party

Read a random definition: noncontiguous

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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windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
BulbasaurNoLikeCardio
7:51
@texaslawhopefully: best prices and only fast food that doesn't make me sick
matt gaetz ethics report released
paid for sex with a junior in high school
guarantee people still defend him
BulbasaurNoLikeCardio
9:51
I only read headlines and skimmed a random article of it since I am the only one at work this week. Seems like he is Republican Hunter Biden but not at the paying rent with poop paintings stage
ImpartialLion
9:55
Sent in my transcript at 6 am today and it’s processing. Think it will be processed before lsac closes tmrw?
BulbasaurNoLikeCardio
9:58
I would say it is a toss up, for how much LSAC charges us for everything they are extremely efficient in processing and sending stuff out BUT with a 30% uptake in applicants and the holidays it may be significantly slower unless it is ran through and processed by a computer program. Even if it takes them longer to process it, not like there is anyone at a school to request and review it after LSAC does their thing
Do we know if any of the t14 open at all this week
just called Fordham. they said there will be decisions going out today
so congratulations on pre xmas waves
BulbasaurNoLikeCardio
10:27
Hope schools are chill and just send As leaving the Rs for next month lol
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