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Simple English definitions for legal terms
prime maker
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A quick definition of prime maker:
A prime maker is the person who is responsible for paying back a loan or debt. They are the main person who signed the agreement and agreed to be held accountable for the money borrowed. It's like being the leader of a group project, where you are the one who takes the most responsibility for making sure everything gets done correctly.
A more thorough explanation:
A prime maker is a person who is primarily responsible for a promissory note or other negotiable instrument. This means that if the note is not paid, the prime maker is the one who is legally obligated to pay it.
For example, if John signs a promissory note to borrow money from a bank, and Jane co-signs as a guarantor, John is the prime maker because he is the one who is primarily responsible for paying back the loan. If John defaults on the loan, the bank can go after him for payment before going after Jane.
Another example is if a company issues bonds to raise money, the company is the prime maker because it is primarily responsible for paying back the bondholders.
Overall, a prime maker is the person or entity who is legally obligated to pay back a debt or fulfill a financial obligation.