An accommodation party who signs an instrument guaranteeing payment is secondarily liable on the instrument.

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An accommodation party, by definition, is someone who signs a negotiable instrument (such as a check or promissory note) to guarantee payment by someone else (such as the borrower or buyer). This party is secondarily liable, meaning they are responsible for payment only if the primary party (the borrower or buyer) fails to pay. This is different from a co-signer or co-maker, who is jointly and severally liable for payment along with the primary party.

An Accommodation Party Who Signs an Instrument Guaranteeing Payment Is