Section 28Part 2 — Bills of Exchange
Accommodation bill or party
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An accommodation party to a bill is a person who has signed a bill as drawer, acceptor or indorser, without receiving value therefor, and for the purpose of lending the accommodation party’s name to some other person.
An accommodation party is liable on the bill to a holder for value; and it is immaterial whether, when such holder took the bill, that holder knew such party to be an accommodation party or not.
Defined Terms
accommodation party