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See Ashland State Bank v. Elkhorn Racquetball, Inc., 520 N.W.2d
189, 194 (Neb. 1994); Marvin E. Jewell & Co. v. Thomas, 434
N.W.2d 532, 534 (Neb. 1989). A party claiming accommodation
party status under Nebraska law bears the burden of proving its
right to that status. See Rule 142(a); Marvin E. Jewell & Co. v.
Thomas, supra at 536.
1. FirsTier Note
Neb. Rev. Stat. U.C.C. section 3-419(a) and its predecessor
require that both the accommodated party and the accommodation
party be parties to the instrument. We are aware of no cases
that have held otherwise.
The Court of Appeals for the Eighth Circuit, to which an
appeal in this case would lie, has addressed specifically the
elements necessary to qualify as an accommodation party under
former Neb. Rev. Stat. section 3-415(1). See Pioneer Ins. Co. v.
Gelt, 558 F.2d 1303, 1310-1311 (8th Cir. 1977). In Pioneer Ins.
Co., suit was instituted by Pioneer Insurance Co. (Pioneer)
against Harry Gelt to recover on a promissory note. At the
request of a personal friend, Roger Sack, Gelt agreed to act as
the ostensible buyer of an investment corporation so that Sack
could avoid having to obtain the Securities and Exchange
Commission’s approval of the purchase. Sack assured Gelt that
Gelt would be held harmless in connection with the overall
transaction and that he would not be exposed to any financial
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