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La.. Rev. Stat. § 7:63 provides as follows: A person placing his signature upon an instrument otherwise than as maker, drawer, or acceptor is deemed to be an endorser, unless he clearly indicates by appropriate words his intention to be bound in some other capacity.
At the time the promissory note was executed, the husband and wife co-makers of the note both signed the note on the reverse side before presenting it to the payee. The husband co-maker subsequently made three payments totaling $ 160. Suit was filed, and judgment was rendered against the wife.
Did her endorsement on the reverse of the note make the wife legally responsible for the amount owed under the note?
Yes, as an accommodation endorser.
The court determined the wife co-maker intended to become an endorser to insure that her husband would pay his portion of the joint obligation. The court determined that the wife co-maker was legally responsible for the amount owed by him in her capacity as an accommodation endorser, in accordance with La. Rev. Stat. Ann. § 7:68 and La. Civ. Code Ann. arts. 2080, 2093. There could not be recovery against her, however, for one-half of the amount of the note as co-maker because five years had elapsed without a suit having been filed.