{"data":{"id":"us-ky/krs-355.3-419","jurisdiction":"us-ky","citation":"KRS 355.3-419","heading":"Instruments signed for accommodation.","body":"(1) If an instrument is issued for value given for the benefit of a party to the instrument\n(\"accommodated party\") and another party to the instrument (\"accommodation\nparty\") signs the instrument for the purpose of incurring liability on the instrument\nwithout being a direct beneficiary of the value given for the instrument, the\ninstrument is signed by the accommodation party \"for accommodation.\"\n(2) An accommodation party may sign the instrument as maker, drawer, acceptor, or\nindorser and, subject to subsectio n (4) of this section, is obliged to pay the\ninstrument in the capacity in which the accommodation party signs. The obligation\nof an accommodation party may be enforced notwithstanding any statute of frauds\nand whether or not the accommodation party receiv es consideration for the\naccommodation.\n(3) A person signing an instrument is presumed to be an accommodation party and\nthere is notice that the instrument is signed for accommodation if the signature is an\nanomalous indorsement or is accompanied by words indicating that the signer is\nacting as surety or guarantor with respect to the obligation of another party to the\ninstrument. Except as provided in KRS 355.3 -605, the obligation of an\naccommodation party to pay the instrument is not affected by the fact t hat the\nperson enforcing the obligation had notice when the instrument was taken by that\nperson that the accommodation party signed the instrument for accommodation.\n(4) If the signature of a party to an instrument is accompanied by words indicating\nunambiguously that the party is guaranteeing collection rather than payment of the\nobligation of another party to the instrument, the signer is obliged to pay the amount\ndue on the instrument to a person entitled to enforce the instrument only if:\n(a) Execution of judgment against the other party has been returned unsatisfied;\n(b) The other party is insolvent or in an insolvency proceeding;\n(c) The other party cannot be served with process; or\n(d) It is otherwise apparent that payment cannot be obtained from the other party.\n(5) If the signature of a party to an instrument is accompanied by words indicating that\nthe party guarantees payment or the signer signs the instrument as an\naccommodation party in some other manner that does not unambiguously indicate\nan intention to guarantee collection rather than payment, the signer is obliged to pay\nthe amount due on the instrument to a person entitled to enforce the instrument in\nthe same circumstances as the accommodated party would be obliged, without prior\nresort to the accommodated party by the person entitled to enforce the instrument.\n(6) An accommodation party who pays the instrument is entitled to reimbursement\nfrom the accommodated party and is entitled to enforce the instrument against the\naccommodated party. In proper circumstances, an accommodation party may obtain\nrelief that requires the accommodated party to perform its obligations on the\ninstrument. An accommodated party that pays the instrument has no right of\nrecourse against, and is not entitled to contribution from, an accommodation party.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33489","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:44Z","sha256":"fd5d7e00505e2f306cddde41e7d160338a9834e3f23e1c7dc6da51393301c231","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.3-418","next":"us-ky/krs-355.3-420"},"notice":"GroundRules: Original legal text. Not legal advice."}