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A creditor is a [[party]] (e.g. person, organization, company, or government) that claims that a second party owes the first party some property or service. The first party, in general, has provided some [[property]] or [[service]] to the second party under the assumption (usually enforced by [[contract]]) that the second party will return an equivalent property or service. The first party is frequently called a [[lender]], and the second party is frequently be called a [[debtor]] or [[borrower]]. |
A creditor is a [[party (law)|party]] (e.g. person, organization, company, or government) that claims that a second party owes the first party some property or service. The first party, in general, has provided some [[property]] or [[service]] to the second party under the assumption (usually enforced by [[contract]]) that the second party will return an equivalent property or service. The first party is frequently called a [[lender]], and the second party is frequently be called a [[debtor]] or [[borrower]]. |
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The term creditor is frequently used in the financial world, especially in reference to [[loan]]s. |
The term creditor is frequently used in the financial world, especially in reference to [[loan]]s. |
Revision as of 04:44, 17 April 2004
A creditor is a party (e.g. person, organization, company, or government) that claims that a second party owes the first party some property or service. The first party, in general, has provided some property or service to the second party under the assumption (usually enforced by contract) that the second party will return an equivalent property or service. The first party is frequently called a lender, and the second party is frequently be called a debtor or borrower.
The term creditor is frequently used in the financial world, especially in reference to loans.
The term creditor derives from the notion of credit. In modern America, credit refers to a rating which indicates the ability of a borrower and likelihood to pay back his loan. In earlier times, credit also referred to reputation or trustworthiness.