accommodation party (C1)
noun phrase
Pronunciation: /əkɒməˈdeɪʃən ˈpɑːti/
Definition
A person who signs a negotiable instrument to help another person obtain credit, often without receiving direct benefit from the transaction.
Examples
The company's CEO acted as an accommodation party to help the small business owner secure a loan.
The bank required an accommodation party to co-sign the mortgage before approving the loan.
How to Use accommodation party
- act as an accommodation party (phrase)
- to sign a negotiable instrument to help another person obtain credit — "The CEO acted as an accommodation party to help the small business owner secure a loan."
- sign as an accommodation party (phrase)
- to sign a negotiable instrument to guarantee payment — "The guarantor signed as an accommodation party to secure the loan for the borrower."
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