Melco, Inc., issued a promissory note for $12,000, payable to the order of Marjorie. On the back of the note, Charles had signed the following statement: “For and in consideration of funds advanced herein to Melco, Inc., we irrevocably guarantee Marjorie against loss by reason of non-payment of this note.” After the instrument was overdue, Marjorie sued Charles to enforce the note before demanding payment from the issuer. Is Charles liable on the note before demand is made on the issuer? Argument for Marjorie: Charles was an accommodation party and, as such, was liable on the instrument even if no demand had been made on the issuer. Argument for Charles: If the accommodation party writes, “I guarantee collection,” he is not liable until the issuer fails to pay. In this case, the words Charles wrote are the equivalent of “I guarantee collection.” Marjorie’s response: To avoid liability in this case, Charles had to comply with the exact requirements of the statute. How was she to know that he thought he was writing the equivalent of “I guarantee collection”?