Notes and acceptances that are made in settlement of genuine business transactions come under the head of regular, legitimate business paper. An accommodation note, or acceptance, is one which is signed, or indorsed, or accepted, simply as an accommodation, and not in settlement of an account or in payment of an indebtedness.

With banks, accommodation paper has a deservedly hard reputation. However, there are all grades and shades of accommodation paper, though it represents no actual business transaction between the parties to it, and rests upon no other foundation than that of mutual agreement.

No contract is good without a consideration, but this is only true between the original parties to a note. The third party or innocent receiver, or holder of a note, has a good title, and can recover its value, even though it was originally given without valuable consideration.

An innocent holder of a note which had been originally lost or stolen, has a good title to it, if he received it for value.