The practice of accepting or paying a bill of exchange after it has been dishonoured, by an individual aiming to preserve the honour of the drawer or an endorser.
An accommodation party is an individual who signs a financial instrument, such as a note, as a favor to another party without receiving any compensation or benefit, thus guaranteeing the debt of another individual.
Accommodation paper is a type of negotiable instrument signed by a party—without receiving value: to facilitate another party in obtaining money or credit.
An accommodation party is an individual who signs an accommodation bill as the drawer, acceptor, or endorser, thereby acting as a guarantor to assure the payment of that bill.
