An obligor is a person or entity that has a legal obligation to another person or entity. In the context of credit and debt, an obligor is typically the borrower of a loan. The obligor is legally obligated to repay the loan in accordance with the terms of the loan agreement. If the obligor defaults on the loan, the lender may pursue legal action to recover the outstanding balance. What is the single obligor limit for banks in Ghana? The single obligor limit for banks in Ghana is $100 million. What are the duties of an obligor? An obligor is a person who is bound by an obligation, such as a contract. The duties of an obligor depend on the terms of the obligation, but typically include meeting the obligations of the contract, such as making payments when due.
What is obligor risk rating? An obligor risk rating is an assessment of the creditworthiness of a party to a financial contract, typically a bond, loan or credit default swap. The assessment is made by a credit rating agency and is based on the agency's evaluation of the obligor's ability to meet its financial obligations under the contract. The rating is expressed as a letter grade, with higher grades indicating lower risk.
Is an obligor a borrower? An obligor is a borrower if the obligor has received a loan from a lender. The term "obligor" is often used in the context of secured loans, where the borrower has pledged collateral to the lender in order to obtain the loan. In this case, the obligor is the party who is obligated to repay the loan and is also the party who has the right to use the collateral.
What is the difference between issuer and obligor?
The main difference between an issuer and obligor is that an issuer is the entity that creates and sells the security, while the obligor is the entity that is obligated to make payments on the security.
In most cases, the issuer and obligor are the same entity. However, there are some instances where the issuer and obligor are different entities. For example, when a company issues bonds, the company is the issuer, and the bondholders are the obligors.