Accommodation Maker(Banking) Law and Legal Definition

A person signing a note without receiving compensation or other benefit is an accommodation maker. S/he can be an acceptor, maker, or endorser. An accommodation maker guarantees the debt of another person. S/he guarantees to induce the lender to make a loan. When the accommodation maker and the accommodated party jointly sign the note, they are co-makers and are liable to each other for default. An accommodation maker gratuitously guarantees the debt of the accommodated party. However, s/he remains liable for the note as a surety. Pursuant to U.C.C. §3-415(5), the accommodation maker has a right of recourse on the instrument against the accommodated party.