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Can you summarize MNST 336.3-419?
UNIFORM COMMERCIAL CODE > INSTRUMENTS SIGNED FOR ACCOMMODATION.
Short Summary
This legal document, governed by the Minnesota Statutes under the Uniform Commercial Code, specifically addresses instruments signed for accommodation. It outlines the circumstances in which an accommodation party signs an instrument for the benefit of another party without being a direct beneficiary themselves. The document explains that an accommodation party may sign the instrument as a maker, drawer, acceptor, or endorser, and is obligated to pay the instrument in the capacity in which they sign. The obligation of an accommodation party can be enforced regardless of any statute of frauds and whether or not they receive consideration for the accommodation. The document also discusses the presumption of an accommodation party’s status and the notice that the instrument is signed for accommodation. It further clarifies the obligations of an accommodation party based on the intention to guarantee collection or payment. Additionally, the document addresses the rights of an accommodation party who pays the instrument, including reimbursement from the accommodated party and the ability to enforce the instrument against them. Overall, this legal document provides a comprehensive framework for understanding instruments signed for accommodation and the associated obligations and rights of the parties involved.
Whom does it apply to?
Parties involved in the signing of an instrument for accommodation
What does it govern?
Instruments signed for accommodation
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota