Vermont § 419 - § 3—419.

§ 419. § 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) of this section, 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 3—605 of this title, 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. (Added 1993, No. 158 (Adj. Sess.), § 12, eff. Jan. 1, 1995.)