Cred´it`or Pronunciation: kr?d´?t-?r
CREDITOR, persons, contracts. A creditor is he who has a right to require
the fulfilment of an obligation. or contract.
2. Creditors may; be divided into personal and real.
3. The former are so called, because their claims are mainly against
the person, who can reach the property of their debtors only by; virtue of
the general rule by which he who has become personally obligated, is bound
to fulfill his engagements, with all his property acquired and to be
acquired, Which is a common guaranty for all his creditors.
4. The latter are called real, because they have mortgages or other
securities binding on the real estates of their debtors.
5. It is proper to state that personal creditors may be divided into
two classes first, those who have a right on all the property of their
debtors, without considering the origin, or the nature of their claims;
secondly, those who, in consequence of some provision of law, are entitled
to some special prerogative, either in the manner of recovery, or in the
rank they are to hold among creditors; these are entitled to preference. As
an example, may be mentioned the case of the United State; when they are
creditors, they have always a preference in case of insolvent estates.
6. A creditor sometimes becomes so, unknown to his debtor, as is the
case when the former receives an assignment of commercial; paper, the title
to recover which may be conveyed either by endorsement, or, in some cases,
by mere delivery. But in general it is essential there should be a privity
of contract between the parties. Vide, generally, 7 Vin. Ab. 42; 3 Com. Dig.
343; 8 Com. Dig. 388; 1 Supp. to Ves. Jr. 302 2 Sup. to Ves. Jr. 305 Code,
7, 72, 6; Id. 8, 18; Dig 42, 6, 17; Nov. 97 ch. t3 Bouv. Inst. Index, h.t.
, mortgage holder