A(n)____ signs an instrument to lend his credit to an instrument,and his liability is determined by the capacity in which he signs.
A) indorser
B) accommodation party
C) authorized agent
D) maker

Question

Quizplus · Accepted Answer

An accommodation party signs an instrument to lend his credit to the instrument, meaning that he is not the primary obligor but provides a guarantee for payment. The liability of an accommodation party is determined by the capacity in which he signs. Indorser and maker are primary obligors, and authorized agent acts on behalf of another party but does not lend their credit.

A(n)____ Signs an Instrument to Lend His Credit to an Instrument,and