Nevada § 104.3419 - Instruments signed for accommodation

§ 104.3419. Instruments signed for accommodation

1. 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.” 2. An accommodation party may sign the instrument as maker, drawer, acceptor or endorser

and, subject to subsection 4, 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. 3. 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

endorsement 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 otherwise provided in NRS 104.3605 , 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. 4. 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: (a) Execution of judgment against the other party has been returned unsatisfied; (b) The other party is insolvent or in an insolvency proceeding; (c) The other party cannot be served with process; or (d) It is otherwise apparent that payment cannot be obtained from the other party. 5. If the signature of a party to an instrument is accompanied by words indicating

that the party guarantees payment or the signer signs the instrument as an accommodation

party in some other manner that does not unambiguously indicate an intention to guarantee

collection rather than payment, the signer is obliged to pay the amount due on the

instrument to a person entitled to enforce the instrument in the same circumstances

as the accommodated party would be obliged, without prior resort to the accommodated

party by the person entitled to enforce the instrument. 6. An accommodation party that pays the instrument is entitled to reimbursement from

the accommodated party and is entitled to enforce the instrument against the accommodated

party. In proper circumstances, an accommodation party may obtain relief that requires

the accommodated party to perform its obligations on the instrument. An accommodated party that pays the instrument has no right of recourse against,

and is not entitled to contribution from, an accommodation party.