Print View

[Section Index]

The Negotiable Instruments Act, 1881

( ACT NO. XXVI OF 1881 )

[ 9th December, 1881 ]

Chapter III

PARTIES TO NOTES, BILLS AND CHEQUES

Liability of accommodation party and position of accommodation party
1[38A.(1) An accommodation party is liable on a negotiable instrument to a holder in due course, notwithstanding that when such holder took the instrument he knew such party to be an accommodation party.
 
 
 
 
(2) An accommodation party to a negotiable instrument, if he has paid the amount thereof, is entitled to recover such amount from the party accommodated.]
  • 1
    Section 38A was inserted by section 23 of the Negotiable Instruments (Amendment) Ordinance, 1962 (Ordinance No. XLIX of 1962)
Copyright © 2019, Legislative and Parliamentary Affairs Division
Ministry of Law, Justice and Parliamentary Affairs