Ang Tiong vs.

Ting
GR L-26767, 22 February 1968
En Banc, Castro (J)

Facts:
Lorenzo Ting issued a check for P4,000 payable to “cash or bearer.” With Felipe Ang’s signature
(indorsement in blank) at the back thereof, the instrument was received by Ang Tiong who thereafter
presented it to the bank for payment. The drawee bank dishonored it. Ang Tiong made written demands on
both Ting and Ang to make good the amount represented by the check. These demands unheeded. Ang Tiong filed suit
for collection. The trial court adjudged for Ang Tiong. Only Ang appealed, maintaining that he is only an accommodation
party.

Issue:
Whether Felipe Ang is an accommodation party.

Held:
Felipe Ang is a general indorser (Section 63, Negotiable Instruments Law), in the absence of any
indication by appropriate words his intention to be bound in some other capacity. Even on the assumption that Ang is a
mere accommodation party, he is liable on the instrument to a holder for value notwithstanding that such holder at the
time of taking the instrument knew him to be only an accommodation party (Section 29, Negotiable Instruments Law).
Assuming further that Ang is an accommodation indorser, the fact that Ang
may obtain security from the maker to protect himself against the danger of insolvency of the latter cannot in
any manner affect his liability to Ang Tiong, as the said remedy is a matter of concern exclusively between an
accommodation indorser and an accommodated party. The liability of Felipe Ang remains primary and
unconditional.