Examples of creditor in a Sentence
She owes thousands of dollars to creditors.
Recent Examples of creditor from the Web
The sale price will be revealed in a report to creditors this week.
Another Italian website, The Local, says Vacchi has had possessions such as his yacht seized by creditors.
But Dickson, who lives in Louisville and Paris, Kentucky, filed for bankruptcy protection last month, citing a single creditor –
Elliott is Energy Future’s biggest creditor and has a stake in any final deal.
The country also remains mired in debt worth 175 percent of GDP, regardless of any relief offered by its European creditors.
While the case is in its infancy and shows no precise numbers, Hernandez declared owing up to $1 million to as many as 50 creditors.
The restructuring plan provides for full payment of claims of True Religion's continuing trade creditors, which includes continuing vendors, suppliers and landlords.
If approved, the filing will allow the brand to remain in business by handing ownership over to creditors.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'creditor.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of creditor
Financial Definition of CREDITOR
What It Is
How It Works
There are generally two types of creditors: personal and real. Personal creditors are people who loan money to friends or family. Real creditors are financial entities who require borrowers to sign legal contracts that grant the creditor some sort of collateral -- e.g. car, house, jewelry -- if the borrower fails to repay the loan.
Let's look at a scenario with a real creditor, XYZ Bank, to whom you go to for a loan. If you are approved and they lend you money, XYZ Bank becomes your creditor.
Individuals and companies can have several creditors at any given time, for many different types of debt. Additional examples of creditors who extend credit lines of money or services include: utility companies, health clubs, phone companies and credit card issuers.
Not all creditors are considered equal. Some creditors are considered superior to others (senior), while others are subordinate.
For example, if Company XYZ issues bonds, the bondholders become creditors senior to Company XYZ's shareholders. And should Company XYZ then go bankrupt, the senior bondholders are entitled to repayment before the shareholders are.
Why It Matters
If a borrower does not repay the credit, creditors have the legal right to:
1Sue to obtain access to accounts or other assets if the borrower has not paid.
2Place liens on the borrower's assets. This means the borrower cannot sell the assets without paying the creditor first.
The distinction between senior debt and subordinated debt is crucial for creditors and investors. Senior debt is considered less risky than subordinated debt because it is first in line to be repaid once means for repayment have become available. That means that the interest rate paid on senior debt is lower than that paid on unsecured debt.
CREDITOR Defined for English Language Learners
Definition of creditor for English Language Learners
: a person, bank, or company that lends money to someone
CREDITOR Defined for Kids
Definition of creditor for Students
legal Definition of creditor
Seen and Heard
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