2006 New York Code - Contract Of Accommodation Party.

 
  Section 3--415. Contract of Accommodation Party.
    (1)  An  accommodation  party  is  one who signs the instrument in any
  capacity for the purpose of lending his name to another party to it.
    (2) When the instrument has been taken for value before it is due  the
  accommodation  party  is  liable  in the capacity in which he has signed
  even though the taker knows of the accommodation.
    (3) As against a holder in  due  course  and  without  notice  of  the
  accommodation  oral proof of the accommodation is not admissible to give
  the accommodation party the  benefit  of  discharges  dependent  on  his
  character  as  such.  In  other cases the accommodation character may be
  shown by oral proof.
    (4) An indorsement which shows that it is not in the chain of title is
  notice of its accommodation character.
    (5) An accommodation party is not liable to  the  party  accommodated,
  and  if he pays the instrument has a right of recourse on the instrument
  against such party.
    (6) An accommodation party warrants to any subsequent  holder  who  is
  not  the  party  accommodated and who takes the instrument in good faith
  that
         (a) all signatures are genuine or authorized; and
         (b) the instrument has not been materially altered; and
         (c) all prior parties had capacity to contract; and
         (d) he has no knowledge of any insolvency  proceeding  instituted
             with  respect  to  the  maker or acceptor or the drawer of an
             unaccepted instrument.