Definition

Noun: A person who signs their name to a promissory note (like a loan agreement) to guarantee its payment, not for personal gain or payment, but as a favor to the person who is borrowing the money. This action makes the endorser legally responsible for the debt if the borrower fails to pay.

Usage

This is a specific legal and financial term. An accommodation endorser provides their creditworthiness to help someone else obtain a loan they might not get on their own. * The bank required a guarantor, so his uncle acted as an accommodation endorser on the loan. * Acting as an accommodation endorser is a significant risk, as you become liable for the debt.

Advanced Usage

• The role is defined by the accommodation party principle in commercial law, where the endorser signs for the purpose of lending their name or credit to another party on the instrument.
• The relationship is often referred to as an accommodation endorsement, highlighting the act itself rather than the person.

Variants and Related Words

• Accommodation Party: A broader legal term for any person (including an endorser, co-maker, or guarantor) who signs a negotiable instrument to benefit the accommodated party without direct personal financial benefit.
• Guarantor: A more general term for a person who agrees to be responsible for another's debt or performance.
• Co-signer: A common term for a person who signs a loan agreement alongside the primary borrower, sharing responsibility for repayment.

Synonyms

• Guarantor (contextual)
• Co-signer (contextual)
• Surety (contextual)

Important Note

This term is highly specific to finance and law. In everyday language, "co-signer" is more commonly used, though it may not always imply the exact "favor without compensation" nuance of a formal accommodation endorser.

Noun

1. a person who endorses a promissory note without compensation or benefit but simply as a favor to the borrower