11. Liability of other we have seen, an accommodation party to a bill may sign as drawer, acceptor or indorser; to a note as drawer or indorser.
He is liable to a holder for value, tho as an accommo dation party he has signed without receiving value, whether or not the holder who takes the bill or note knew that he was an accommodation party. He is not liable to the person whom he accommodates. He may up any defense that the person accommo dated could set up. If the holder knows of the rela tion between the accommodation party 1 and the party accommodated, and gives time to the latter to pay, the former is released. A second accommodation in dorser, who has paid a note, may, it has been held, recover from a prior accommodation indorser. But it has been held that a manufacturing corporation has no power to bind itself as an accommodation party. The plaintiff must show both that he paid value and also that he did not know of the accommodation char acter of the instrument.' When a person gives a guarantee, on a note, for instance, that it will be paid, he becomes a warrantor of the obligations of the drawer or indorser, as the case may be. He has signed, otherwise than as drawer or acceptor, and under the act, thereby incurs the liabilities of an indorser to a holder in due course. He is liable without notice of dishonor or protest. He is bound by any notice given to the person whose lia bility he warrants.
12. person who promises to accept a
bill, and does not do so, may .-be liable in damages. When a bill or note is dishonored, the measure of damages deemed to be liquidated damages will be the amount of the bill or note, interest from the time of presentment in case of a bill payable on demand, and from maturity in the case of a time bill or a note, to gether with the expenses of noting and protest. Among the expenses re-exchange would also be in cluded. In case of a bill which has been dishonored abroad, in addition to the damages just mentioned, the holder may recover from the 'drawer or any in dorser, and the drawer or an indorser who has been compelled to pay the bill may recover from any party liable to him, the amount of the re-exchange with in terest thereon until paid. Re-exchange has been de fined as the act of drawing a sight draft on the drawer to make good the loss on the dishonored bill. The amount of the re-exchange is the amount of the loss resulting from the dishonor of a bill in a country other than that in which it was drawn or indorsed. The re-exchange is ascertained by proof of the sum for which a sight bill (drawn at the time and place of dishonor the then rate of exchange on the place where the drawee or indorser sought to be charged resides) must be drawn, in order to realize, at the place of dishonor, the amount of the dishonored bill, and the expenses consequent on its dishonor.