Debtor

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Debtor

 

in civil law, a party to an obligation, that is, a party obliged to perform a certain act or to refrain from performing an act. Only persons able to exercise civil rights and obligations, that legal “persons”[such as corporations] can act in the capacity of debtors.

In bilateral contractual obligations, one and the same person can be both a debtor and a creditor (for example, under a sale and delivery contract the contractor is a debtor as far as his obligation to deliver goods is concerned and a creditor in connection with the receipt of money). In obligations, several persons can be the debtor (the so-called plurality of debtors). In this case, the obligation is fulfilled by each debtor to the extent of his share and, in the case of joint and several liability, each of the debtors is obliged to fulfill the obligation to the full extent (for example, in the case of indivisibility of the object of obligation, see the Civil Code of the RSFSR, art. 180; in the case of joint guaranty, the Civil Code of the RSFSR, art. 204). The debtor who has fulfilled the obligation in its entirety has the right of claim on other debtors for exoneration.

E. G. POLONSKII

References in periodicals archive ?
501) As for the manifestation of the setoff, this was rightful under Debtor and Creditor Law section 151:
The version of Section 547(c)(2) that applies to bankruptcy cases filed on and after October 17, 2005, retains the requirement that the indebtedness paid by the alleged preference was incurred in the ordinary course of business or financial affairs of the debtor and creditor.
In addition to the baseline of dealings test, courts review the ordinariness of the transfer between the debtor and creditor in relation to past practices.
The court found that the controlling factor in determining whether a payment was made in the ordinary course of business of the debtor and creditor is the consistency of the timing of the payment during and prior to the preference period.
Late payments may be in the ordinary course of business of the debtor and creditor if they are consistent with a payment history of similarly late payments.
The creditor must prove that the debt was incurred and the payment was made in the ordinary course of business of the debtor and creditor and was not "unusual," "idiosyncratic" or otherwise inconsistent with some industry standard.