Business Glossary

Business Definition for: accommodation paper

Dictionary of Banking Terms

accommodation paper

promissory note or negotiable instrument signed by a third party, who acts as accommodation maker, endorser, or party.

See also accommodation endorser

Dictionary of Business Terms

accommodation paper

a negotiable instrument signed by a party as maker, drawer, acceptor, or endorser, without receiving value. It has the purpose of enabling another party to obtain money or credit.

Related Terms:

accommodation endorser

person who endorses a promissory note as a favor to the borrower, without compensation or benefit. An endorser or cosigner's signature enables the borrower to qualify for credit, or to obtain credit at more favorable terms. The endorser is a guarantor or surety, and remains secondarily liable in event of default.

Referring Terms:

promissory note

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