Credit

1.

In its primary sense, as a noun and a verb, imports reliance upon something said or done as the truth: belief or faith in testimony.

Discredit.

To diminish the reliance to be placed upon testimony on any account whatever, and not necessarily for want of veracity in a person or for want of genuineness in a document.

Compare Impeach, 3; Infamy.

General credit

The general credit of a witness is his character as a credit-worthy man.

Particular credit

Credit as a witness in a particular action.'

See Credible.

2.

The capacity of being trusted. The trust reposed in an individual, by those who deal with him, that he is able to meet his engagements.' In an enlarged commercial sense, implies reputation and confidence; a basis 'on which the possessor may trade without immediate payment.'" The term also comprehends what is due to another person; and, again, time given in which to pay for a thing bought. Credit is, strictly, a benefit as a means to procure property, and is not in itself recognized as property. Its whole office is to obtain trust. It is available to another by gift, sale, etc. Given gratuitously, it is i loan; given for a consideration, a sale of credit." Every contract for labor, not paid for in advance, is a contract upon credit; because the labor, when once performed, cannot be recalled. It is otherwise where property is to be paid for on delivery, for a delivery need not be made.

1 See 1 Greenl. Ev. §§ 2, 49, 431; 3 BI. Com. 369. 1 Whart. Ev. § 404. ' 1 Whart. Ev. § 413. <l Whart. Ev. §415. 1 Whart. Ev. § 416.

1 Whart. Ev. §§ 391, 417. ' Bemis v. Kyle, 5 Abb. Pr. 233 (1867), 'Dry Dock Bank v. American Ins. Co., 3 N. T. 356 (1830). [Owen V. Branch Bank at Mob Ue, 3 Ala. 867 (1842). Credit, bill of. " No State.. shall emit Bills of Credit," i that is, issue paper intended to circulate through the community, for its ordinary purposes as money, and redeemable at a future day.s A paper issued by the sovereign power, containing a pledge of faith, and designed to circulate as money. 3 The term may cover certificates of indebtedness, bearing interest; 2 but not bills of a bank chartered by a State, even though the State be the sole stockholder," nor, even if it pledges its credit for their payment, in case the bank fails to redeem them.* Credit, letter of. A letter written by one merchant or correspondent to another requesting him to credit the bearer with a sum of money. 5 See Letter, 3, Of credit.

Mutual credits

In laws of set-off, " a knowledge on both sides of an existing debt due to one party, and a credit by the other party, founded on and trusting to such debt, as a means of discharging it." See Accounts, Mutual; Debts, Mutual. ' Creditor. In a strict literal sense, he who voluntarily trusts or gives credit to another, upon bond, bill, note, book, or simple contract, for money or other property. In a liberal sense, he who has a legal demand for money or other property which has come to the hands of another, without the consent of the former, but by mistake or accident, and to the payment or possession of which, or to compensation in damages therefor, he is entitled upon the ground of an implied promise. In a still more general sense, he who has a right by law to demand and recover of another a sum of money on any account whatever.' Not simply a person to whom a debt is due, but a person to whom any obligation is due, — the last not being the usual meaning.8 Constitution, Art. I, sec.

10, cl. 1. ' Craig V. Missouri, 4 Pet. 431 (1830), Marshall, C. J. 'Briscoe v. Bank of Kentucky, 11 Pet. 314 (1837), Mc Lean, J. * Darrington v. Bank of Alabama, 13 How. 16 (1851). See Legal Tender Case, 110 U. S. 443 (1883); Virginia Coupon Cases, 114 id. 283 (1885); 2 Story, Const §§ 1362- 64; 4 Kent, 408. "Mechanics' Bank v. N. Y. & New Haven E. Co., 4 Duer, 586 (1855): Mo Culloch's Commercial Diet. 2 Story, Eq. § 1435; Munger u.

Albany City Nat. Bank, 85 N. Y. 590 (1681), Folger, C. J. ' [Stanley v. Ogden, 2 Root, 201 (1795).] One who has the right to require the fulfillment of an obligation or contract.' Compare Debtor. The term may merely designate a person. Thus, although the relation of debtor and creditor has been dissolved, the person who was the " debtor " in a contract for usurious interest may testify against him who was the " creditor." No one, unsolicited, may make himself the creditor of another.'

See Negotiable.

Domestic creditor

A creditor resident within the county or the State of the debtor's domicil, or where his property is situated.

Foreign creditor

One who resides within another jurisdiction.* Execution creditor. A creditor who has obtained a levy upon property belonging to his debtor.

Existing creditor

A person who becomes the ci'editor of another after the latter has made an invalid transfer of his property, and before the invalidity has been removed.s General creditors, or creditors at large. Creditors of an insolvent whose claims are to be satisfied pro rata out of any balance left after the claims of secured or favored creditors have been paid.

Judgment creditor

He whose claim! has been merged into a judgment against his debtor, and under which, generally, execution may be had.

Junior creditor

A person who becomes a creditor after some other has become a creditor; also termed a "younger," "later," or "subsequent" creditor, and particularly used with reference to the validity of the liens of judgment creditors.

Lien creditor

A creditor who has for evidence of his claim a judgment, mortgage, or other lien regularly entered of record..

Preferred creditor

A creditor who the law, or the debtor, has directed shall be paid before others.

See Pbeper, 2.

Secured creditor

A creditor who has the possession of, or a lien upon, property of his debtor, as security for the payment of his claim. Opposed, unsecured creditor. 1 Hardy v. Norfolk Manuf. Co., 60 Va. 423 (1885), Lacy, J. 2 Gififord V. Whitoomb, 9 Cush. 483 (1862), cases, Bigelow, J.; 28 Minn. 153. s Gurnee v. Bausemer, 80 Va. 872 (1885), cases. * On enjoining creditors frona proceeding in a for- Subsequent or future creditors; existing creditors; prior creditors.

See Assign; Conveyance, Fraudulent; Receivee; Stock, 3 (3); Suffer.

Creditor's bill

A bill in equity filed by one or more creditors of a deceased person for an account of the assets and a settlement of the estate of the decedent. A single creditor may file his bill for payment of his own debt, and seek a recovery of assets for this purpose only. But the more usual course is for one or more creditors to file a bill by and on behalf of himself or themselves, and all other creditors who shall come under the decree, for an account of the assets, and a due settlement of the estate. The principle is that as equality is equity the assets should be distributed without that preference allowed at common law. The usual decree is, quod coynputet; that the master take the accounts between the deceased and all his creditors; and an account of all the personal estate of the deceased In the hands of the executor or administrator:, the same to be applied in payment of the debts and other charges, in a due course of administration. Thereafter, a creditor may not carry on a suit at law except as the coiui; of equity may allow. Such a b Ul lies for a discovery of assets. The court will proceed to a final decree on the merits. The usual decree is for an account; but where the representative of the deceased admits assets, the decree is for immediate payment." It Is no doubt generally true that a creditor's bill, to subject his debtor's interests in property to the payment of the debt, must show that all remedy at law had been exhausted. And, generally, it must be averred that judgment has been recovered for the debt, that execution has been issued, and that it has been returned nulla bona. The reason is, until such a showing is made, it does not appear, in most cases, that resort to a court of equity is necessary, in other words that the creditor is remediless at law. But a fruitless execution is not necessary to show that the creditor has no adequate legal remedy. Thus, when the debtor's estate is a mere equitable one, which cannot be reached by any proceeding at law, there is no reason for requiring attempts to reach it by legal processes. In Illinois a creditor's bill is defined to be a bill by which a creditor seeks to satisfy his debt out of some equitable estate of the defendant which is not liable to a levy and sale under an execution at law.*