Question

Which of the following is true regarding the liability of an accommodation party?

A. As a maker, an accommodation party has primary liability; but, as an endorser, the party has secondary liability.

B. An accommodation party has primary liability both as a maker and as an endorser.

C. An accommodation party has secondary liability both as a maker and as an endorser.

D. An accommodation party has primary liability as either a maker or endorser only if all other parties to the instrument have filed bankruptcy.

E. An accommodation party has primary liability as a maker only if all other parties have filed bankruptcy, and secondary liability in any other case regardless of whether the accommodation party is the maker or endorser.

Answer

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