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Simple English definitions for legal terms
accommodation note
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A quick definition of accommodation note:
An accommodation note is a written promise to pay money to someone else. It's like a special kind of note where someone else has signed it to help out the person who owes the money. There are many different types of notes, like ones that have to be paid all at once or ones that have small payments over time. Some notes are backed up by things like property or stocks, while others are not. Sometimes, people write notes to remember things later, like a to-do list.A more thorough explanation:
An accommodation note is a type of promissory note where an accommodating party signs and assumes secondary liability for the payment of the note. This means that if the primary party fails to pay, the accommodating party is responsible for paying the debt.
For example, if John borrows money from a bank and his friend Jane signs an accommodation note, Jane is agreeing to pay the debt if John cannot.
Accommodation notes are often used to help someone obtain credit when they may not be able to do so on their own.