Basic Uniform Commercial Code

Accommodation

Another party can sign the front of a note as guarantor to make himself an accommodation party, making himself liable for the note as well.

If a PETE (person entitled to enforce the note) who is owed money in an instrument does something to compromise the value of the collateral or otherwise does something to contribute to the accommodation party or surety party bearing a loss, the accommodation party is not liable for the amount of the loss.

A PETE has to exhaust his remedies against the primary person before he can go after an accommodation party.