(i) An individual or Company whose performance of certain obligations is covered by a bond. (ii) The money due under the Policy. (iii) The party to a transaction, as distinguished from the broker or Agent. (iv) A sum lent or employed as a fund of investment, as distinguished from its income or profits. (v) The original amount (as of a loan) of the total due and payable at a certain date.
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UK: 1. One who authorises an agent, to act on his behalf. If an agent purports to act on his own behalf, his principal is called an undisclosed principal. 2. A principal debtor is one who owes a debt that is guaranteed by a surety. 3. A sum of money put out at interest. 4. An authorised firm that accepts regulatory responsibility for contracted appointed representative firms and individuals. The principal must report its contracted agreement with an AR to the FSA for inclusion in the FSA Register. See PRINCIPAL’S CLAUSE.
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A person or organization whose obligation are guaranteed by a bond.
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MEDICAL,USA: Entity that authorizes another individual or representative to act on behalf of the principal in dealing with third parties.
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Used in suretyship, it refers to the individual whose performance is guaranteed.