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Liability of an Accommodation Party
Up to what extent is an accommodation party liable?
1. Right to revoke accommodation – before the instrument has been negotiated for value.
2. Right to reimbursement from accommodated party – the accommodated party is the real debtor. Hence, the cause of action is not on the instrument but on an implied contract of reimbursement.
3. Right to contribution from other solidary accommodation maker. (Sadaya v. Sevilla, G.R. No. L‐17845, Apr. 27, 1967)