(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." e
(b) An accommodation party may sign the instrument as maker, drawer, acceptor or indorser
and, subject to subsection (d), is obliged to pay the instrument in the capacity in which the
accommodation party signs. The obligation of an accommodationu party may be enforced
notwithstanding any statute of frauds and whether or not the accommodation party receives
consideration for the accommodation. t
(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 indicatingl that the signer is acting as surety or
guarantor with respect to the obligation of ansother party to the instrument. Except as
provided in section 3-605, 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 persong 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) An accommodation party who pays the instrument is entitled to reimbursement from the
accommodated party and is entitled to enforce the instrument against the accommodated
party. An accommodated party who pays the instrument has no right of recourse against,
and is not entitled to contribution from, an accommodation party.‹ Prev All West Virginia sections Next ›
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