Accommodation parties are guarantors of negotiable instruments.

Question

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Accommodation parties, also known as sureties, are individuals who provide a guarantee or promise to pay the debt of the primary borrower if they default. They are often required for the acceptance of a negotiable instrument, such as a promissory note or check. As such, they are responsible for ensuring that the instrument is paid in full and on time, making them guarantors of the negotiable instrument.

Accommodation Parties Are Guarantors of Negotiable Instruments