A person or entity who is legally, or contractually, obliged to provide some benefit or payment to another. In the 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.
An obligor is also referred to as a "debtor."
As bond issues are contractual obligations, issuers have very little leeway in terms of deferring principal repayments or interest payments. Any delay in payment or non-payment of interest could be interpreted as a default for the bond issuer, an event that could have massive repercussions and long-term ramifications for the continuing viability of the business. As a result, most bond issuers take their debt obligations very seriously. With that said, defaults by over-leveraged issuers do occur from time to time.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
obligor — ob·li·gor /ˌä blə gȯr, jȯr/ n: one who is bound by an obligation to another an obligation extinguished by performance of the obligor compare creditor, debtor, obligee … Law dictionary
Obligor — Ob li*gor , n. The person who binds himself, or gives his bond to another. Blackstone. [1913 Webster] … The Collaborative International Dictionary of English
obligor — (n.) person who binds himself to another by contract, 1540s, agent noun in Latin form from OBLIGE (Cf. oblige) … Etymology dictionary
obligor — [äb΄li gôr′, äb′li gôr΄] n. [< OBLIGE + OR] Law a person who binds himself to another by contract … English World dictionary
obligor — noun Date: 1541 one who is bound by a legal obligation … New Collegiate Dictionary
obligor — /ob li gawr , ob li gawr /, n. Law. 1. a person who is bound to another. 2. a person who gives a bond. [1535 45; OBLIGE + OR2] * * * … Universalium
obligor — noun The party bearing a legal obligation to another party, the obligee … Wiktionary
obligor — Any party with an obligation to discharge; usually used to refer to a borrower. American Banker Glossary A person who has an obligation to pay off a debt. Bloomberg Financial Dictionary … Financial and business terms
obligor — obÂ·liÂ·gor || â€šÉ‘blÉª gÉ”r /â€šÉ’blÉª gÉ”Ë n. guarantor; person who receives an obligation (Law); person who is obligated … English contemporary dictionary
obligor — [ ɒblɪgɔ:, ˌɒblɪ gɔ:] noun Law a person who owes or undertakes an obligation to another by contract or other legal procedure. Compare with obligee … English new terms dictionary