Accommodation Paper - Explained
What is an Accommocation Paper?
Written by Jason Gordon
Updated at September 26th, 2021
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What is an Accommodation Paper?
Accommodation paper is a third-party pledge attached to a promissory note which ensures that the recipient of the promised payment gets paid. Usually, the third party lends their credit rating power to support a borrower having a lower rating. A co-signer is the most popular instance of an accommodation party. The borrower is also referred to as the accommodated party.
Back To: COMMERCIAL LAW: CONTRACTS, PAYMENTS, SECURITY INTERESTS, & BANKRUPTCY
Related Topics
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What is the role of a Guarantor or Surety of a negotiable instrument?
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Surety
- Cosign
- Accommodation Paper Definition
- Secondary Liability
- Avalize Definition
Academics research on Accommodation Paper
- Commercial paper in economic theory and legal history, Weinberg, H. R. (1981). Commercial paper in economic theory and legal history. Ky. LJ, 70, 567.
- Validity of Corporate Mortgages Executed for Accommodation, Curran, E. O. (1938). Validity of Corporate Mortgages Executed for Accommodation. Mich. L. Rev., 37, 1001.
- Negotiable Instruments Law a Rejoinder to Dean Ames, Brewster, L. D. (1901). Negotiable Instruments Law a Rejoinder to Dean Ames. Harv. L. Rev., 15, 26.
- The discount policy of the Bank of England during the suspension of cash payments, 1797-1821, Duffy, I. P. (1982). The discount policy of the Bank of England during the suspension of cash payments, 1797-1821. Economic History Review, 67-82. The article re-interprets the directors' well-known public statements about discount policy in the light of fresh information derived from the Bank's archives. It challenges the usual view that the directors collectively espoused the real bills doctrine and argues that they appreciated the need to regulate discounts in order to limit the note circulation. It maintains that the relatively low level of discounts during the Restriction reflects the success of this policy and that the Bank's occasional excesses were products of maladministration, not of unenlightened beliefs.
- Antebellum Commercial Law: Common Law Approches to Secured Transactions, Freyer, T. (1981). Antebellum Commercial Law: Common Law Approaches to Secured Transactions. Ky. LJ, 70, 593
