MUTUARY Meaning and
Definition
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A mutuary is a term derived from the Latin word "mutuarius," meaning one who borrows or a borrower. In the realm of law and finance, a mutuary is an individual or entity that takes out a loan from a lender, accepting the obligation to repay the borrowed amount in accordance with the agreed-upon terms and conditions. The mutuary is responsible for repaying both the principal amount borrowed and any applicable interest, fees, or penalties which might be specified in the loan agreement.
As a borrower, the mutuary usually enters into a contractual agreement with the lender, which outlines the terms of the loan such as the repayment schedule, interest rate, and any clauses related to default or early repayment. Prompt and faithful repayment of the loan is mandatory for the mutuary to maintain their positive credit history.
Additionally, the mutuary may be required to provide certain collateral or security against the loan, depending on the nature and size of the borrowed amount. The lender may also perform a credit assessment before extending the loan to assess the mutuary's creditworthiness and ability to repay. In case of non-payment or default, the lender may take legal actions or seek remedies as outlined in the loan agreement.
Overall, a mutuary refers to an individual or entity that borrows money through a legally binding agreement with a lender, undertaking the obligation to repay the borrowed amount within the agreed timeframe while adhering to the specified terms and conditions.
Common Misspellings for MUTUARY
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