Accommodated Party Law and Legal Definition

Accommodated party is a party to an instrument for whose benefit an accommodation party signs and incurs liability on the instrument. S/he is the person for whose benefit an accommodation is made.

Pursuant to U.C.C. § 3-103, when an instrument is issued for value given for the benefit of a party to the instrument and another party to the instrument signs the instrument for the purpose of incurring liability on the instrument without being a direct beneficiary of the value given for the instrument, the instrument is signed by the accommodation party for accommodation. The benefited party is the accommodated party.