Igor signed a note to Gogh Bank, and his friend Sergei also signed the note as an accommodation maker. If Igor defaults on the note when it is due, what are Sergei's rights and obligations?
A) Sergei has the right to recover his payment from the bank.
B) Sergei has the same contractual liability as Igor and must pay the bank.
C) Sergei cannot recover his money from Igor or the bank since he has primary liability.
D) Sergei has secondary liability.

Question

Quizplus · Accepted Answer

An accommodation party is a person who signs a negotiable instrument for the purpose of lending her credit to another party to the instrument but is not a direct beneficiary of the value given for the instrument. An accommodation maker has the same contractual obligations as the payee. In the above case, Igor and Sergei have the same contractual liability.

Igor Signed a Note to Gogh Bank, and His Friend