Okla. Stat. tit. 12A, § 12A-3-419: Instruments Signed for Accommodation

INSTRUMENTS SIGNED FOR ACCOMMODATION

(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) of this

section, 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 3-

605 of this title, 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

(i) execution of judgment against the other party has been returned

unsatisfied, (ii) the other party is insolvent or in an insolvency

proceeding, (iii) the other party cannot be served with process, or

(iv) it is otherwise apparent that payment cannot be obtained from

the other party.

(e) If the signature of a party to an instrument is accompanied

by words indicating that the party guarantees payment or the signer

signs the instrument as an accommodation party in some other manner

that does not unambiguously indicate an intention to guarantee

collection rather than payment, the signer is obliged to pay the

amount due on the instrument to a person entitled to enforce the

instrument in the same circumstances as the accommodated party would

be obliged, without prior resort to the accommodated party by the

person entitled to enforce the instrument.

(f) An accommodation party that pays the instrument is entitled

to reimbursement from the accommodated party and is entitled to

enforce the instrument against the accommodated party. In proper

circumstances, an accommodation party may obtain relief that

requires the accommodated party to perform its obligations on the

instrument. An accommodated party that pays the instrument has no

right of recourse against, and is not entitled to contribution from,

an accommodation party.