INSTRUMENTS SIGNED FOR ACCOMMODATION
(a) If an instrument is issued for value given for the benefit
of a party to the instrument ("accommodated party") and another
party to the instrument ("accommodation party") signs the instrument
for the purpose of incurring liability on the instrument without
being a direct beneficiary of the value given for the instrument,
the instrument is signed by the accommodation party "for
accommodation".
(b) An accommodation party may sign the instrument as maker,
drawer, acceptor, or indorser and, subject to subsection (d) of this
section, is obliged to pay the instrument in the capacity in which
the accommodation party signs. The obligation of an accommodation
party may be enforced notwithstanding any statute of frauds and
whether or not the accommodation party receives consideration for
the accommodation.
(c) A person signing an instrument is presumed to be an
accommodation party and there is notice that the instrument is
signed for accommodation if the signature is an anomalous
indorsement or is accompanied by words indicating that the signer is
acting as surety or guarantor with respect to the obligation of
another party to the instrument. Except as provided in Section 3-
605 of this title, the obligation of an accommodation party to pay
the instrument is not affected by the fact that the person enforcing
the obligation had notice when the instrument was taken by that
person that the accommodation party signed the instrument for
accommodation.
(d) If the signature of a party to an instrument is accompanied
by words indicating unambiguously that the party is guaranteeing
collection rather than payment of the obligation of another party to
the instrument, the signer is obliged to pay the amount due on the
instrument to a person entitled to enforce the instrument only if
(i) execution of judgment against the other party has been returned
unsatisfied, (ii) the other party is insolvent or in an insolvency
proceeding, (iii) the other party cannot be served with process, or
(iv) it is otherwise apparent that payment cannot be obtained from
the other party.
(e) If the signature of a party to an instrument is accompanied
by words indicating that the party guarantees payment or the signer
signs the instrument as an accommodation party in some other manner
that does not unambiguously indicate an intention to guarantee
collection rather than payment, the signer is obliged to pay the
amount due on the instrument to a person entitled to enforce the
instrument in the same circumstances as the accommodated party would
be obliged, without prior resort to the accommodated party by the
person entitled to enforce the instrument.
(f) An accommodation party that pays the instrument is entitled
to reimbursement from the accommodated party and is entitled to
enforce the instrument against the accommodated party. In proper
circumstances, an accommodation party may obtain relief that
requires the accommodated party to perform its obligations on the
instrument. An accommodated party that pays the instrument has no
right of recourse against, and is not entitled to contribution from,
an accommodation party.
Added by Laws 1961, p. 114, § 3-419. Amended by Laws 1991, c. 117,
§ 82, eff. Jan. 1, 1992; Laws 2009, c. 208, § 9, eff. Nov. 1, 2009.
NOTE: Laws 2008, c. 382, § 9 was held unconstitutional by the
Oklahoma Supreme Court in the case of Weddington v. Henry, 202 P.3d
143, 2008 OK 102 (2009) and repealed by Laws 2009, c. 208, § 22,
eff. Nov. 1, 2009.‹ Prev All Oklahoma sections Next ›
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