§ 34.1-3-419 — Instruments signed for accommodation

Wyoming § 34.1-3-419

• Jurisdiction: Wyoming
• Title 34.1: Uniform Commercial Code
• Art. 3: NEGOTIABLE INSTRUMENTS

Text

(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 34.1-3-605, 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 (1) execution of judgment against the
other party has been returned unsatisfied, (2) the other party
is insolvent or in an insolvency proceeding, (3) the other party
cannot be served with process, or (4) 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.