A drawee of a bill who, by signing the bill on its face, agrees to pay the bill when it is due is referred to as a(n) ________.

Question

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The acceptor is the drawee who signs the bill and agrees to pay it when it is due. Option A, accommodation party, refers to a person who signs a bill as a favor to help out the debtor. Option C, holder in due course, refers to a person who is in lawful possession of the bill, has given value for it, and has no reason to believe there are any defects in the bill. Option D, holder, is a generic term for anyone holding the bill, whether as the original payee, a subsequent endorsee, or a transferee.

A Drawee of a Bill Who, by Signing the Bill