The obligor (also known as obligator) is the debtor or borrower; the party advancing the funds is the lender, creditor, or obligee
Contract
A contract is a voluntary arrangement between two or more parties that is enforceable at law as a binding legal agreement. At common law, the elements of a contract are offer, acceptance, intention to create legal relations, and consideration.
What is the difference between obligor and debtor?
is that obligor is (legal|finance) the party bearing a legal obligation to another party, the obligee while debtor is (economics) a person or firm that owes money; one in debt; one who owes a debt. (legal, finance) The party bearing a legal obligation to another party, the obligee.
What is an obligor?
An obligor, also known as a debtor, is a person or entity who is legally or contractually obliged to provide a benefit or payment to another.
What is a guarantor’s obligation to the borrower?
By definition, a guarantor or surety’s obligation is secondary to that of the borrower and that secondary obligation exists only as long as the principal debtor owes performance of the underlying obligation.
What is the legal definition of a debtor?
(legal) One who owes another anything, or is under obligation, arising from express agreement, implication of law, or principles of natural justice, to pay money or to fulfill some other obligation; in bankruptcy or similar proceedings, the person who is the subject of the proceeding.
Who is an obligor on a loan?
An obligor, also known as a debtor, is a person or entity who is legally or contractually obliged to provide a benefit or payment to another. In a financial context, the term "obligor" refers to a bond issuer who is contractually bound to make all principal repayments and interest payments on outstanding debt.
What does the obligor mean?
Legal Definition of obligor : one who is bound by an obligation to another an obligation extinguished by performance of the obligor — compare creditor, debtor, obligee, promisor, surety.
Who is the obligor in a case?
The two parties share one or more dependents, and they work together to support those dependents. The Obligor is the person who is bound to perform some legal obligation, and the Obligee is the person who benefits from the performance.
What is an obligor in a contract?
Primary tabs. Obligee is a person or entity to whom an obligation is owed. It is a term that is often used in contract law. An obligee can be a creditor or a promisee. For example, in a principal surety relationship, an obligee is the creditor who may enforce payment or performance by either principal or surety.
Is creditor and obligee the same?
The ACTIVE SUBJECT is the person who has the right or power to demand the performance or payment of the obligation. He is also called the obligee or the creditor. The PASSIVE SUBJECT is the person bound to perform or to pay. He is the one against whom the obligation can be demanded.
Is seller an obligor?
A distributor may, for example, have a contract with a seller (the obligor) that prevents them from selling their rival's products.
Who is a debtor?
What Is a Debtor? A debtor is a company or individual who owes money. If the debt is in the form of a loan from a financial institution, the debtor is referred to as a borrower, and if the debt is in the form of securities—such as bonds—the debtor is referred to as an issuer.
What is the difference between an obligor and obligee?
An obligor is an individual who owes a benefit or payment to another person, such as child support, alimony, or a payment on a loan. The individual receiving the benefit is known as the obligee, and they benefit from the terms of the contract.
Who is debtor and creditor?
In every credit relationship, there's a debtor and a creditor: The debtor is the borrower and the creditor is the lender.
Is obligor a buyer?
In a financial contract, such as a sale of a property or a loan given out for the purchase of a property, the obligor is the party that is contractually obligated to provide a benefit or payment -that is the buyer of the property, or the debtor in the case of the loan, respectively.
What is a primary obligor?
A person who owes a primary obligation to another person. In a finance transaction, the primary obligor is usually the borrower.
Who is the guarantor of a promissory note?
From the perspective of the lender or landlord who benefits from the guaranty, the guarantor who executes a payment guaranty is an equally liable co-maker of the promissory note, the tenant, or other primary obligated entity. The purpose of these provisions is to make the guarantor’s liability effectively the same as the liability ...
Do guarantors have to show liability?
As compared to a borrower who obviously must show debt as a liability on its financial statement, a guarantor (generally speaking) need only recognize the guarantee’s existence as a liability when required by the industry standard that has been adopted by regulatory authorities. [5]
Is a guarantor a surety?
Traditionally, guarantors (like sureties) are vested with certain common law surety defenses. By definition, a guarantor or surety’s obligation is secondary to that of the borrower and that secondary obligation exists only as long as the principal debtor owes performance of the underlying obligation.
Do guaranties require a guarantor to pay?
Those guaranties regularly require the guarantor to pay every obligation (debt principal, interest, costs, legal fees, etc.) if the borrower or other guaranteed obligor (like a tenant) does not pay as promised regardless of the lender or landlord’s efforts to collect from the primary obligee or realize on the collateral.
Who is the guarantor of a promissory note?
From the perspective of the lender or landlord who benefits from the guaranty, the guarantor who executes a payment guaranty is an equally liable co-maker of the promissory note, the tenant, or other primary obligated entity. The purpose of these provisions is to make the guarantor’s liability effectively the same as the liability ...
Do guarantors have to show liability?
As compared to a borrower who obviously must show debt as a liability on its financial statement, a guarantor (generally speaking) need only recognize the guarantee’s existence as a liability when required by the industry standard that has been adopted by regulatory authorities. [5]
Do guaranties require a guarantor to pay?
Those guaranties regularly require the guarantor to pay every obligation (debt principal, interest, costs, legal fees, etc.) if the borrower or other guaranteed obligor (like a tenant) does not pay as promised regardless of the lender or landlord’s efforts to collect from the primary obligee or realize on the collateral.
Is a guarantor a surety?
Traditionally, guarantors (like sureties) are vested with certain common law surety defenses. By definition, a guarantor or surety’s obligation is secondary to that of the borrower and that secondary obligation exists only as long as the principal debtor owes performance of the underlying obligation.
