Accommodation Endorser (Noun)
Meaning
A person who endorses a promissory note without compensation or benefit but simply as a favor to the borrower.
Classification
Nouns denoting people.
Examples
- The accommodation endorser signed the promissory note without receiving any compensation, simply to help the borrower secure the loan.
- The lender required the borrower to have an accommodation endorser before approving the loan application.
- As an accommodation endorser, she took on the risk of repaying the loan if the borrower defaulted.
- The accommodation endorser was not entitled to any benefits or proceeds from the loan, only the borrower was.
- In signing the promissory note as an accommodation endorser, he essentially co-signed the loan without receiving anything in return.