Cengage Advantage Books: Essentials of Business Law 5th Edition by Jeffrey Beatty,Susan Samuelson

Exercise 5

What is the difference between a co-maker and an accommodation party
(a) A co-maker is liable both to the holder and the other co-maker, while an accommodation party is liable only to the holder.
(b) A co-maker is liable to subsequent indorsers, while an accommodation party is not.
(c) A co-maker is liable only to the other co-maker, while the accommodation party is liable to the holder.
(d) A co-maker is not liable once a bank certifies a check, while an accommodation party is still liable even after certification.