Bills of Exchange Act, 1964 (Act No. 34 of 1964)

Chapter I

The consideration for a bill

26. Accommodation bill or party
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(1)An accommodation party to a bill is a person who has signed a bill as drawer, acceptor or indorser, without receiving value therefor, but for the purpose of lending his name to some other person.

 

(2)An accommodation party is liable on the bill to a holder for value, irrespective of whether or not, when such holder took the bill, he knew such party to be an accommodation party.