Principal Debtor
/ˈprɪnsəpəl ˈdɛtər/
Definitions
- (n.) The primary party who is directly responsible for the payment of a debt or obligation to a creditor.
The principal debtor is legally obligated to repay the loan before any guarantors are called upon.
Forms
- principal debtors
Related terms
See also
Commentary
In drafting, clearly distinguishing the principal debtor from secondary obligors such as guarantors is essential to delineate responsibilities and liabilities.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.