Accommodation endorser meaning

Noun: accommodation endorser

Pronunciation: (u,ko-mudey-shun endor-su)

Accommodation endorser meaning:

• A person who endorses a promissory note without compensation or benefit but simply as a favor to the borrower

Derived forms: accommodation endorsers
Quotations:

1. John Houston – A second accommodation endorser of a bill of exchange against whom and the first accommodation endorser a joint judgment has been recovered, will be released from liability by a valid tender by the first endorser to the judgment.

Sample sentences:

1. Generally, the accommodation endorser is not a direct party to the transaction which gave rise to the creation of the instrument. By acting as endorser, however, the accommodation party assumes responsibility for redeeming the instrument.
2. Accommodation papers are usually used to support one party’s statements.