Accommodation Endorser
Barron's Banking Dictionary:
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Accommodation Endorser
Person who endorses a Promissory Note as a favor to the borrower, without compensation or benefit. An endorser or cosigner's signature enables the borrower to qualify for credit, or to obtain credit at more favorable terms. The endorser is a Guarantor or surety, and remains secondarily liable in event of default. See also Comaker.
Investopedia Financial Dictionary:
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Accommodation Endorser
An entity or person who agrees to back the credit obligations of another party in order to allow that party to obtain credit for which they would not otherwise qualify. It is the equivalent of a payment guarantee.
Investopedia Says:
Accommodation endorsers typically have some relationship with the borrowing person. Typical examples would include a parent company endorsing a subsidiary or a parent endorsing a child with no credit rating. The advantage of having an accomodation endorser may not only include obtaining credit, but may result in a reduced rate of interest as well.
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Barron's Banking Dictionary
Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.
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Mentioned in
Accommodation Paper
(in banking)
Accommodation Endorser, Maker, or Party
(business term)
Contingent Liability
(in banking)
Contingent Liabilities
(finance term)
Accommodation Party
(legal term)