Nelson v. Cotham

James H. Pilkinton, Judge.

This litigation calls for a determination of whether, under the facts of the case, a person signing a negotiable instrument is an accommodation party under the Uniform Commercial Code, and is entitled to foreclose a lien upon the affected real property. The chancellor held for the alleged accommodation endorser, determined the amount of the disputed balance, and ordered foreclosure. The property owners have appealed, and we consider the case de novo.

Buxton Homes, Inc. (the “Corporation”) was formed on July 15, 1975, as an Arkansas Corporation, the two stockholders of…