Accommodation Parties And Negotiable Instruments (Never)

Front 1

Acoomodation and negotiable instrument

Back 1

Under article 3, it refers to what the common law calls a surety or a guarantor. It means a person who incurs an obligation without receiving a direct benefit

Front 2

liability

Back 2

Liable in the capacity in which instrument is signed (usually by indorser). No requirements that creditor try to collect from debtor prior to trying to collect from surety, unless phrase "collection guaranteed" is included when surety signs instruments

Front 3

Defenses available to accommodation party if sued by creditor/ primary debtor's defense

Back 3

All available to surety but discharge in bankruptcy, infancy, or incapacity

Front 4

Defenses available to accommodation party if sued by creditor/ special suretyship defenses

Back 4

Defense payment good to the extent that surety is caused loss by; creditor's extension of debtor's time to pay contract. Other material modification to contract between debtor and creditor. IMpairment of collateral securing contract between debtor and creditor.

Discharge of principal not a defense for a surety under art 3. different result than under common law of suretyship

Front 5

Defenses available to accommodation party if sued by creditor/ rights available to accommodation party if sued by creditor

Back 5

1) reimbursement from primary debtor
2) common law rights.