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CREDITOR

(A) A person or entity to whom money or a debt is owed. (B) persons, contracts. A creditor is he who has a right to require the fulfillment of an obligation or contract. 2. Creditors may be divided into personal and real. 3. The former are so called, because their claims are mainly against the person, who can reach the property of their debtors only by; virtue of the general rule by which he who has become personally obligated, is bound to fulfill his engagements, with all his property acquired and to be acquired, Which is a common guaranty for all his creditors. 4. The latter are called real, because they have mortgages or other securities binding on the real estates of their debtors. 5. It is proper to state that personal creditors may be divided into two classes first, those who have a right on all the property of their debtors, without considering the origin, or the nature of their claims; secondly, those who, in consequence of some provision of law, are entitled to some special prerogative, either in the manner of recovery, or in the rank they are to hold among creditors; these are entitled to preference. As an example, may be mentioned the case of the United State; when they are creditors, they have always a preference in case of insolvent estates. 6. A creditor sometimes becomes so, unknown to his debtor, as is the case when the former receives an assignment of commercial; paper, the title to recover which may be conveyed either by endorsement, or, in some cases, by mere delivery. But in general it is essential there should be a privity of contract between the parties.

Law Dictionary – Alternative Legal Definition

A person to whom a debt is owing by another person, called the “debtor.” Mohr v. Elevator Cov, 40 Minn. 343, 41 N. W. 1074; Woolvertoh v. Taylor Co., 43 111. App. 424; Insurance Co. v. Meeker, 37 N. J. Law, 300; Walsh v. Miller, 51 Ohio St 462, 38 N. E. 381. The foregoing is the strict legal sense of the term; but in a wider sense it means one who has a legal right to demand and recover from another a sum of money on any account whatever, and hence may include the owner of any right of action against another, whether arising on contract or for a tort; a penalty, or a forfeiture. Keith v. Hiher, 63 Ark. 244, 38 S. W. 13; Bongard v. Block, 81 111. 186, 25 Am. Rep. 276; Chalmers V; Sheeny, 132 Cal. 459, 64 Pac. 709, k Am. St. Rep. 62; Pierstoff v. Jorges, 86 Wis. 128, 56 N. W 735, 39 Am. St Rep. 881. j . Classification. A creditor is called a “simple contract creditor,” a “specialty creditor,” a “bond creditor,” or otherwise, according to the nature of the obligation giving rise to the debt. Other compound and descriptive terms. Attaching creditor. One who has caused an attachment to be issued and levied on property of . his debtor. Catholic creditor. In Scotch law, one whose debt is secured on all oi on several distinct parts of the debtor’s property. The contrasted term (designating one who is not so secured) is “secondary creditor.” Certificate creditor. A creditor of a municipal corporation who receives a certificate of indebtedness for the amount of his claim, there being no funds on hand to pay him. Johnson v. New Orleans, 46 La. Ann. 714, 15 South. 100. Confidential creditor. A term sometimes applied to creditors of a failing debtor who furnished him with the means of obtaining credit to which his real circumstances did’ not entitle him, thus involving loss to other creditors not in his confidence. Gay v. Strickland, 112 Ala. 567, 20 South. 021. Creditor at large. One who has not established his debt by the recovery of a judgment or has not otherwise secured a lien on any of the debtor’s property. U. S. v. Ingate (C: C.) 48 Fed. 254; Woicott v. Ashenfcltcr, 5 N. M. 442, 23 Pac. 780, 8 L. R. A. 691 . Domestic creditor. One who resides in the same state or country in which the debtor has his domicile or his property. Execution creditor. One who, having recovered a judgment against the debtor for ins debt or claim, has also caused art execution to be issued thereon. Foreign creditor. One who resides in a state or country foreign to that where the debtor has his domicile or his property. General creditor. A creditor at large (supra), or one who has no lien or security f on the payment of bis debt or claim. King v. Eraser, 23 S. C. 543; Wolcott v. Ashenfelter, 5 N. M. 442, 23 Pac. 780, 8 LL R. A. 091. Joint creditors. Persons jointly entitled to require satisfaction of the same debt or demand. Judgment creditor. One who has obtained a judgment against his debtor, under which he can enforce execution. King v. Fraser, 23 S. C. 548; Wex v. Wechsler, 18 Me. 36;Baxter v. Moses, 77 Me. 465, 1 Atl. 350. 52 Am. Rep. 783; .Code Civ, Proc. N. Y. 1899, 3343. Junior creditor. One whose claim or demand accrued at a date later than that of a claim or demand held by another creditor, who is called correlatively the “senior” creditor. Lien creditor. See LIEN. Preferred creditor. See PREFERRED. Principal creditor. One whose claim or demand very greatly exceeds the claims of all other creditors in amount is sometimes so called. See In re Sullivan’s Estate, 25 Wash. 430, 65 Pac. 793. Secured creditor. See SECURED. Subsequent creditor. One whose claim or demand accrued or came into existence after a given fact or transaction, such as the recording of a deed or mortgage or the execution, of a voluntary conveyance. McGhee v. Wells. 57 S. C. 280. 35 S. E. 529, 76 Am. St. Rep. 567; Evans v. Lewis, 30 Ohio St. 14. Warrant creditor. A creditor of a municipal corporation to whom Is given a municipal warrant for the amount of his claim, because there are no funds In hand to pay it. Johnson v. New Orleans, 46 La. Ann. 714, 15 South. 100.

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