Asked by Vanessa Ramirez on Apr 29, 2024
Verified
A(n) ________ party is a party who signs an instrument to provide credit for another party that has also signed the instrument.
A) actuary
B) accommodation
C) agent
D) principle
E) endorsee
Accommodation Party
A person who signs a negotiable instrument for the purpose of lending their reputation to someone else on the instrument, without direct benefit.
- Identify the functions and accountabilities of participants in negotiable instruments, including but not limited to the drawer, maker, endorser, and acceptor.
Verified Answer
JJ
Jaeda JenningsMay 02, 2024
Final Answer :
B
Explanation :
An accommodation party is someone who signs a financial instrument on behalf of another party, essentially providing a guarantee of payment, to lend their creditworthiness to the other party.
Learning Objectives
- Identify the functions and accountabilities of participants in negotiable instruments, including but not limited to the drawer, maker, endorser, and acceptor.