Sentences with phrase «primary debtor»
The phrase "primary debtor" refers to a person or entity who is primarily responsible for repaying a debt. They are the main person or organization that owes the money and has the main obligation to pay it back. Full definition
Instead, they would both usually be primary debtors on the loan.
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You also have no recourse against the primary debtor.
You get no benefit from the loan that is made, but you are liable for full repayment of the loan should the primary debtor refuse to pay.
As a result of this, a provision is usually included in guarantee documentation to state that the obligations of the primary debtor may be changed in future without the need for the consent of the guarantor (this is known as an «indulgence clause»).
As the bank insisted, the uncle was not merely a guarantor but was a primary debtor of the mortgage on the home; he did not live there but lived in a nearby home.