What is an obligor?

An obligor is a person or entity who is legally obligated to fulfill a specific duty or obligation. This could be in relation to a contract, loan agreement, or other legal agreement where the obligor has agreed to perform a certain action or pay a certain amount of money.

In the context of loans, the obligor is the borrower who is obligated to repay the loan according to the terms and conditions outlined in the loan agreement. If the obligor fails to meet their obligations, they may be subject to penalties or legal consequences.

Obligors are also commonly found in bond agreements, where the obligor is the entity responsible for making interest and principal payments to bondholders. The creditworthiness of the obligor is an important consideration for investors when evaluating the risk associated with a particular bond.

Overall, an obligor is someone who has a duty or responsibility to fulfill an obligation, and their ability to do so can have significant financial and legal implications.