Definitions for "Accommodation paper"
negotiable instrument signed by a party without receiving something of value in return. Used to assist another party to secure financing.
A note, trade acceptance or draft endorsed by a person when the borrower's credit is not substantial enough to warrant a loan in order to induce a bank to issue a loan to a borrower.
A promissory note or other negotiable instrument signed by a third party (accommodation party) guaranteeing the repayment of a loan.