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) maker
B) indorser
C) authorized agent
D) accommodation party

Question

Quizplus · Accepted Answer

An accommodation party is someone who signs a financial instrument on behalf of another party, lending their credit without receiving any direct benefit. Their liability is based on the capacity in which they sign, such as a guarantor.

A(n) ___________ Signs an Instrument to Lend His Credit to an Instrument