An accommodation note is one which is signed as maker or indorser by some party who has received nothing for signing his name to it. He lends his name to the maker to enable the latter to get his consideration (since bills and notes are contracts they are governed by the same rules of contracts elsewhere discussed) from the payee. It is a benefit to the payee because he can more easily transfer it to some other party by indorsement and secure money on it. Since the accommodation maker has received nothing for his signature the person for whom he signed as maker or indorser cannot make him pay as a "maker," even though his name is on the note as such. But if a holder for value (one who has in good faith paid something valuable for the note) gets the note he can make the accommodation party pay him, even if when he took the instrument he knew him to be only an accommodation party. A wishes to borrow $1,000 at the bank. He asks B to lend him his credit. So A makes a promissory note payable to B, who indorses it in blank. A then takes the note and discounts it at the bank. Or suppose A had been the ordinary payee but the bank would not take the note on A's and B's credit. Then A may get C to indorse it in blank and then A will take it to the bank and discount it. C is the accommodation in-dorser for A, the payee. If C's signature appears before that of A he is termed an "irregular indorser." Having signed for the accommodation of the payee, he is liable to all parties after the payee. For illustration : A made a note to his own order and indorsed it for the accommodation of B, who then indorsed it and negotiated it to P. At maturity the note was not paid and A is sued for the amount. He will be liable, and will not be permitted to show the existence of an oral agreement with B that B alone was to be liable on the note. In short, accommodation parties are liable to holders for value of the notes they sign, but are not liable to the party for whose accommodation they sign.