co-obligor

See: comaker

CO-OBLIGOR, contracts. One who is bound together with one or more others to fulfill an obligation. As to what will constitute a joint obligation, see 5 Bin. 199; Windham's Case, 5 Co. 7; 2 Ev. Poth. 63; Ham. Parties, 29, 20, 24; 1 Saund. 155; Saunders, Arguendo and note 2; 5 Co. 18 b, 19 a, Slingsly's Case. He may be jointly, or severally bound.
     2. When obligors are jointly and not severally bound to pay a joint debt, they must be sued jointly during their joint lives, and after the death of some of them, the survivors alone can be sued; each is bound to pay the whole debt, having recourse to the others for contribution. See 1 Saund. 291, n. 4; Hardress, 198; 2 Ev. Poth. 63, 64, 66. Yet an infant co-obligor need not be joined, for his infancy may be replied to a plea of non-joinder in abatement. 3 Esp. 76; 5 Esp. 47; also, see 5 Bac. Abr. 163-4; 2 Vern. 99; 2 Moss. Rep. 577; 1 Saund. 291 b, n. 2; 6 Serg. & R. 265, 266; 1 Caines' Cases in Err. 122.
     3. When co-obligors are severally bound, each may be sued separately; and in case of the death of any one of them, his executors or administrators may be sued.
     4. On payment of the obligation by any one of them, when it was for a joint debt, the payer is entitled to contribution from the other co- obligors.

References in periodicals archive ?
Penney) of a private offering of USD350m aggregate principal amount of senior secured second priority notes, for which the company would be a co-obligor, subject to market and other conditions.
One example is a change in obligor or the addition or deletion of a co-obligor.
If the bankruptcy filing by the debtor is an event of default under the terms of the loan, the creditor could accelerate the loan balance and seek immediate and full payment from the debtor's co-obligor.
LEGAL COMMENTARY: Equitable contribution is the right to recover from a co-obligor who shares liability with the party seeking contribution.
Even accepting this testimony, however, a jury could reasonably conclude that if the MBNA agents had investigated the matter further and determined that MBNA no longer had the application, they could have at least informed the credit reporting agencies that MBNA could not conclusively verify that Johnson was a co-obligor," Judge Wilkins wrote.
Thus, if there is a co-obligor or guarantor on the debt with the Chapter 13 debtor, the creditor may not proceed against the guaranty or third-party obligation without securing release from the automatic stay in the bankruptcy court.
Senior unsecured notes at 'BB+' (as co-obligor for certain issuances);
1001-3(c)(2)(i), even if an alteration occurs by operation of the terms of the debt instrument, it constitutes a modification if it results in the substitution of a new obligor, the addition or deletion of a co-obligor, or a change (in whole or in part) in the recourse nature of the instrument (e.
Penney Corporation Inc, its wholly owned subsidiary, has commenced an underwritten public offering of USD350m aggregate principal amount of senior unsecured notes, for which the company would be a co-obligor, subject to market and other conditions.
In Letter Ruling 200047046, the Service ruled that the release of a subsidiary as a co-obligor on a debt instrument had no Federal income tax consequences.
Any alteration that results in the substitution of a new obligor, the addition or deletion of a co-obligor or a change in the recourse nature of the debt instrument.