An accommodation party may sign an instrument guaranteeing collection rather than payment of an instrument.In this situation,the accommodation indorser is primarily liable on the instrument.

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An accommodation party signs an instrument to provide security or assistance to the primary obligor, but does not receive any direct benefit from the transaction. If an accommodation party guarantees collection rather than payment, they are not assuming primary liability on the instrument. Instead, they are assuming secondary liability, which means they are liable to pay the debt only if the primary obligor fails to do so. The primary liability rests with the maker or drawer of the instrument, and any indorsers who assume primary liability by placing their signature on the front or back of the instrument.

An Accommodation Party May Sign an Instrument Guaranteeing Collection Rather