Accommodation Maker [Party]

One who signs a note as acceptor, maker, or indorser without recovering value therefore, or any compensation, benefit, or consideration directly or indirectly by way of the transaction of which the note is a part. The accommodation maker, as surety, remains liable for the note, even though the accommodation maker receives no consideration from the accommodated party, the person receiving the favor, also known as the payee. See 87 N.W. 2d 299, 302. The accommodation maker is, in effect, gratuitously guaranteeing the debt of the accommodated party. However, the transaction must be one primarily for the benefit of the accommodated party. See 264 N.W. 875, 876. If the accommodation maker is obligated to honor the accommodation contract, the maker "has a right of recourse on the instrument against" the accommodated party. U.C.C. §3-415(5). If both the accommodation maker and the accommodated party jointly sign the note, they are known as comakers each fully liable if one defaults.