Negotiable Instruments Act, 1881 — section 38A

38A. Liability of accommodation party and position of accommodation party.—(1) An accommodation party is liable on a negotiable instrument to a holder in due course, notwithstanding that when such holder took the instrument he knew such party to be an accommodation party.

(2)An accommodation party to a negotiable instrument, if he has paid the amount thereof, is entitled to recover such amount from the party accommodated.] l Subs. by the Negotiable Instruments (Amdt.) Ordinance, 1962 (49 of 1962), s. 21. for the original section 32. 2 Subs. ibid., s. 22. for the original paragraph. 3 S. 38A, ins. by the Negotiable Instruments (Amdt.) Ordinance, 1962 (49 of 1962). s. 23.