or (3)2 Mr.

A makes a promissory note that is payable to bearer that then

Ila of a delivers it to Mr. B who, in turn delivers it to Mr. C. Mr. Cindorses
(incit specially to D and then D in turn indorsed it to E and then E
delivers it to F. F cannot hold B and E secondarily liable but they
Ila mi bare liable in case of breach of warranty; F cannot likewise make Mr.
C and D secondarily liable because F did not obtain his title from
the indorsement of Mr. Cand D (1979 Bar).
14.03.| Accommodation party (Sec. 29, NIL).
An accommodation party is one who has signed
the instrument as maker, drawer, acceptor, or in-
193
dorser, without receiving value therefor and for
Jan
the purpose of lending his name to some other
person. The requisites are:
bI59
o ramst ai
(1)
he must be a party to the instrument signing
039001000
as maker, drawer, acceptor or indorser;
mitrones eru ver (2)
he must not have received value therefor
(instrument);
(a8eD) 1r vsg o1
(3)
he must sign for the purpose of lending his
name or credit to some other person (Virata
-19990 Jof
u. Wee, July 5, 2017).
G1 oswern
b)
An accommodation party is liable to a holder for
toforeis
value, notwithstanding such holder, at the time
of taking the instrument, knew him to be only
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of aldsi
an accommodation party (1976, 1990, 2003, 2012,
and 2014 Bar). Absence of consideration cannot be
raised by the accommodation party (1998, 2003,
and 2005 Bar).
c) A corporation cannot act as an accommodation
party. The issue or endorsement of negotiable
instrument by a corporation without consideration
and for the accommodation of another is ultra
vires (Crisologo v. CA, 117 SCRA 594).
d)
The accommodation party can ask for reimburse-
ment from the accommodated party after paying
the holder (1998 and 2003 Bar).
e)
Extension of the term or period to pay in favor of
the accommodated party without the consent of