Definition of 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. 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. The recipient of the benefit or payment is known as the obligee.
A person who is bound to another by contract or other legal procedure.
Obligated party (bond issuer, borrower, debtor, insurer, etc.) who has an obligation to repay a debt, make a payment, do something, or to refrain from doing something, under the terms of an agreement. Also called promisor.
An obligor is a person who is legally bound to another. Debt holders are the most common types of obligors. However, in addition to the required repayment of interest and principal, many holders of corporate debt are also contractually required to meet other requirements. For a bondholder, these are called covenants and are outlined in the initial bond issue between the obligor and obligee.
How to use Obligor in a sentence?
- If you ever find yourself as the obligor you need to pay off what you owe so that you keep your good reputation in tact.
- In family law, there are certain cases when a court order is handed down—in a divorce settlement, for example—that requires one of the parents, the obligor, to pay child support to the other parent.
- An obligor is a person or entity who is legally or contractually obliged to provide a benefit or payment to another.
- Prime Group had given an indemnity as a principal obligor, and not just a guarantor, to the Respondents in respect of the tenants obligations under one of the Leases.
- An affirmative covenant is something that the obligor is required to do, such as the need to hit specific performance benchmarks.
- The obligor was unable to make anymore payments for the vehicle, so the bank had it repossessed the following week.
- I was the obligor , so that meant I would be the one that would pay and I would be the one that would be held liable if we did not.
Meaning of Obligor & Obligor Definition