§490:3-419  Instruments signed for
accommodation.  (a)  If an instrument is issued for value given for the
benefit of a party to the instrument ("accommodated party") and
another party to the instrument ("accommodation party") signs the
instrument for the purpose of incurring liability on the instrument without
being a direct beneficiary of the value given for the instrument, the
instrument is signed by the accommodation party "for accommodation".



(b)  An accommodation party may sign the
instrument as maker, drawer, acceptor, or indorser and, subject to subsection
(d), is obliged to pay the instrument in the capacity in which the
accommodation party signs.  The obligation of an accommodation party may be
enforced notwithstanding any statute of frauds and whether or not the
accommodation party receives consideration for the accommodation.



(c)  A person signing an instrument is presumed
to be an accommodation party and there is notice that the instrument is signed
for accommodation if the signature is an anomalous indorsement or is
accompanied by words indicating that the signer is acting as surety or
guarantor with respect to the obligation of another party to the instrument. 
Except as provided in section 490:3-605, the obligation of an accommodation
party to pay the instrument is not affected by the fact that the person
enforcing the obligation had notice when the instrument was taken by that
person that the accommodation party signed the instrument for accommodation.



(d)  If the signature of a party to an
instrument is accompanied by words indicating unambiguously that the party is
guaranteeing collection rather than payment of the obligation of another party
to the instrument, the signer is obliged to pay the amount due on the
instrument to a person entitled to enforce the instrument only if (i) execution
of judgment against the other party has been returned unsatisfied, (ii) the
other party is insolvent or in an insolvency proceeding, (iii) the other party
cannot be served with process, or (iv) it is otherwise apparent that payment
cannot be obtained from the other party.



(e)  An accommodation party who pays the
instrument is entitled to reimbursement from the accommodated party and is
entitled to enforce the instrument against the accommodated party.  An
accommodated party who pays the instrument has no right of recourse against,
and is not entitled to contribution from, an accommodation party. [L 1991, c
118, pt of §1]