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In proper circumstances, an accommodation party may obtain relief that requires the accommodated party to perform its obligations on the instrument. A person who, without any direct or indirect benefit, compensation, or consideration, co-signs a negotiable instrument as a favor to the person who owes the money and, thus, becomes liable on it to all parties except the accommodated party who, by implication, agrees to pay the instrument and to indemnify the accommodation party for any losses incurred in paying it. This is frequently done when the creditworthiness of the accommodated party does not satisfy the person taking the negotiable instrument or extending the credit. Do it in style with our hire corporate buses or cars. Very organized, friendly and accommodating to our large group! Our host was friendly and did a great job anticipating our needs - we never had to go in search of her for anything. Everyone that we came in contact with was helpful, friendly and ready to help in any way they could. The Pizza was great and it was nice to have a separate room available for our party. (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. The third party is called a qualified intermediary in the tax regulations. Example: Jack sells his office building to Jill for 0,000. An accommodated party that pays the instrument has no right of recourse against, and is not entitled to contribution from, an accommodation party. A third party who holds money or other property for a short period of time in order to facilitate a tax-free exchange under Section 1031 of the IRS Code. |
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