KFLCC Kingdom Law 2nd Ed.

297

CREDITOR

CREDIT

of "mutual debts." 1 Atk. 230; Atkinson v. Elliott, 7 Term R. 378.— Personal credit. That credit which a person possesses as an in dividual, and which is founded on the opinion entertained of his character and business stand ing. Credit In the English sense of the term, or more particularly, the security for a loan or advancement. — Credit foncier. A company or corporation formed for the purpose of carrying out improve ments, by means of loans and advances on real estate security.— Credit mobilier. A. com pany or association formed for carrying on a banking business, or for the construction of pub lic works, building of railroads, operation of mines, or other such enterprises, by means of loans or advances on the security of personal property. Barrett v. Savings Inst., 64 N. J. Eq. 425, 54 Atl. 543. A person to whom a debt is owing by another person, called the "debt or." Mohr v. Elevator Co., 40 Minn. 343, 41 N. W. 1074; Woolverton v. Taylor Co., 43 111. App. 424; Insurance Co. v. Meeker, 37 N. J. Law, 300; Walsh v. Miller, 51 Ohio St 462, 38 N. E. 381. The foregoing is the strict legal sense of the term; but in a wider sense it means ( one who has a legal right to demand and recover from another a sum of money on any account whatever, and hence may include the owner of any right of action against another, whether arising on contract or for a tort, a penalty, or a forfeiture. Keith v. Hiner, 63 Ark. 244, 38 S. W. 13; Bongard v. Block, 81 111. 186, 25 Am. Rep. 276; Chalmers v. Sheehy, 132 Cal. 459, 64 Pac. 709, 84 Am. St Rep. 62; Pierstoff v. Jorges, 86 Wis. 128, 56 N. W. 735, 39 Am. St Rep. 881. Classification. A creditor is called a "sim ple contractjsreditor," a "specialty creditor," a bond creditor," or otherwise, according to the nature of the obligation giving rise to the debt Other compound and descriptive terms. —Attaching creditor. One who has caused an attachment to be issued and levied on prop erty of his debtor.— Catholic creditor. In Scotch law, one whose debt is secured on all oi on several distinct parts of the debtor's prop erty. The contrasted term (designating one who is not so secured) is "secondary creditor." —Certificate creditor. A creditor of a mu nicipal corporation who receives a certificate of indebtedness for the amount of his claim, there being no funds on hand to pay him. Johnson v. New Orleans, 46 La. Ann. 714, 15 South. 100.— Confidential creditor. A term some-^ times applied to creditors of a failing debtor who furnished him with the means of obtaining credit to which his real circumstances did not en title him, thus involving loss to other creditors not in his confidence. Gay v. Strickland, 112 Ala. 567, 20 South. 921.— Creditor at large. One who has not established his debt by the recov ery of a judgment or has not otherwise secured a lien on any of the debtor's property. U. S. v. Ingate (C. C.) 48 Fed. 254; Wolcott v. Ash enfelten 5 N. M. 442, 23 Pac. 780, 8 L. R. A. 691.— Domestic creditor. One who resides in the same state or country in which the debtor has his domicile or his property.— Execution creditor. One who, having recovered a judg ment against the debtor for his debt or claim, has also caused an execution to be issued there on.— Foreign creditor. One who resides in a state or country foreign to that where the CREDIT. Fr. CREDITOR.

time, In consequence of the favorable opin ion held by the community, or by the par ticular lender, as to his solvency and relia bility. People v. Wasservogle, 77 Cal. 173, 19 Pac. 270; Dry Dock Bank v. Trust Co., 3 N. Y. 356. 2. Time allowed to the buyer of goods by the seller, in which to make payment for them. 3. The correlative of a debt; that Is, a debt considered from the creditor's stand point, or that which is incoming or due to one. 4. That which is due to a merchant, as distinguished from debit, that which is due by him. 5. That influence connected with certain social positions. 20 Toullier, n. 19. The credit of an individual is the trust re posed in him by those who deal with him that he is of ability to meet his engagements; and he is trusted because through the tribunals of the country he may be made to pay. The credit of a government is founded on a belief of its ability to comply with its engagements, and a confidence in its honor, that it will do that voluntarily which it cannot be compelled to do. Owen v. Branch Bank, 3 Ala. 258. —Bill of credit. See BILL.— Letter of credit. An open or sealed letter, from a mer chant in one place, directed to another, in an other place or country, requiring him, if a per son therein named, or the bearer of the letter, shall have occasion to buy commodities, or to want money to any particular or unlimited amount, either to procure the same or to pass his promise, bill, or bond for it, the writer of the letter undertaking to provide him the money for the goods, or to .repay him by exchange, or to give him such satisfaction as he shall re quire, either for himself, or the bearer of the letter. 3 Chit. Com. Law, 336. A letter of credit is a written instrument, addressed by one person to another, requesting the latter to give credit to the person in whose favor it is drawn. Civ. Code Cal. § 2858. Mechanics' Bank v. New York & N. H. R. Co., 13 N. Y. 630; Pol lock v. Helm, 54 Miss. 5, 28 Am. Rep. 342; Lafargue v. Harrison, 70 Cal. 380,9 Pac. 261, 59 Am. Rep. 416. General and special. A general letter of credit is one addressed to any and all persons, without naming any one in particular, while a special letter of credit is addressed to a particular individual, firm, or corporation by name. Birckhead v. Brown. 5 Hill (N. Y.) 642; Civ. Code Mont. 1895, § 3713.— Line of cred it. See LINE.— Mutual credits. In bank rupt law. < Credits which must, from their na ture, terminate in debts; as where a debt is due- from one party, and credit given by him to the other for a sum of money payable at a future day, and which will then become a debt; or where there is a debt on one side, and a delivery of property with directions to turn it into money on the other. 8 Taunt. 499; 2 Smith, Lead. Cas. 179. By this phrase, in the rule under which courts of equity allow set-off in cases of mutual credit, we are to understand a knowledge on both sides of an existing debt due to one party, and a credit by the other par ty, founded on and trusting to such debt, as a means of discharging it. King v. King, 9 ,N. J. Eq. 44. Credits given by two persons mutually; i. e., each giving credit to the other. It is a more extensive phrase than "mutual debts." Thus, the sum credited by one may be due at once, that by the other payable in fw turo; yet the credits are mutual, though the transaction would not come within the meaning