Accommodation bill

Accommodation bill,

Definition of Accommodation bill:

  1. A bill not representing or originating in an actual commercial transaction, but for the purpose of raising money on credit.

  2. Bill of exchange endorsed by a reputable third party (called an accommodation party or accommodation endorser) acting as a guarantor, as a favor and without compensation. The bill then can be discounted on the financial strength of the guarantor who remains liable until the bill is paid. Also called accommodation note, accommodation paper, or (in the UK) windbill.

Meaning of Accommodation bill & Accommodation bill Definition