Obligor

An infrequently used term usually intended to meant the "principal" in a bond, e.g., and employer arranges for a bond on his various employees to protect the employer against the infidelity of employees. The employer is the obligee under the bond, and the employee is the principal or the obligor. Since the obligor may also mean the surety company, it is generally better to express specifically the intent by indicating either the insurance company or the principal, and not use the phrase obligor.