Accommodation

paper is included under the head commercial paper when it is made (in the case of a promi ory note) or drawn (in the case of a draft or bill of exchange) by a concern or individual for use in mercantile or commercial.: 1 = busine . Accommodation paper consists of drafts or bills of exchange drawn, accepted or indorsed or of promi ory notes made or indorsed without consideration by one party to enable another to obtain credit or to raise money. A promi ory note that has been received for goods sold and that has in order to effect its discount (sale) been indorsed by the party who received it is known as a bill receivable. Single-name paper is paper that is not indorsed; double name paper is paper with an indorsement. Another designation for single-name paper is straight paper; in fact it is a common practise to speak of paper without indorsement as straight paper. 128