LBQAL mSTRUCTOft. 11 



ACCOMMODATION BILL AND NOTE. 



The relative rights and duties of parties who endorse 

 a promissory note for the accommodation of the maker, 

 are the same as in the case of a business note ; so that, 

 due notice of the dishonor of such accommodation note 

 having been given, a subsequent endorser who pays it, 

 may recover of a prior endorser the whole amount paid, 

 and not merely a contribution, as in the case of sureties. 



If one of two joint payors and endorsers of a note, 

 discounted for the accommodation of the maker, die be- 

 fore the note falls due, his representatives are not liable 

 to the holder for any part of the amount. 



It is always understood that a note endorsed for the 

 maker's accommodation, to be discounted in a bank, is 

 to be renewed ; but a renewal is not an extinguishment 

 of the debt, and will not destroy the security of a mort 

 gage, or other guaranty, given to indemnify the en- 

 dorser, when the original note was discounted. 



Wherever a promissory note, endorsed by the payee 

 for the accommodation of the maker, is negotiated by 

 the latter in violation of an agreement between them, 

 the holder cannot recover against such endorser, unless 

 he received the note in good faith, for a valuable con- 

 sideration, and without notice of the arrangement. 



When an accommodation note is drawn for $2500, 

 and the payee declines to endorse it for the whole 

 amount, but directs the bank, where the note is paya- 

 ble, to pay on it $750 ; such note is, in legal elTect, a 

 note for $750, and may be declared on as such- 



