A person who signs an instrument and lends his or her name, and credit to another party to the instrument is referred to as a(n) ________.
A) agent
B) qualified indorser
C) unqualified indorser
D) accommodation party

Question

Quizplus · Accepted Answer

An accommodation party is a person who signs an instrument, such as a promissory note or a check, for the purpose of lending their name and credit to another party to the instrument. This person is not a co-maker of the note, nor does he or she benefit directly from the transaction. An accommodation party is primarily liable for the repayment of the note in case the maker fails to make the payment.

A Person Who Signs an Instrument and Lends His or Her