Legal Definitions - chargee

The term chargee has two distinct meanings in legal contexts:

• 1. The holder of a charge or security interest:

  A chargee is an individual or entity that holds a legal claim or interest (known as a "charge" or "security interest") over someone else's property or assets. This claim typically serves as collateral for a debt or obligation. If the debt is not repaid, the chargee has certain legal rights concerning the charged property.

  • Example A: Mortgage Lender

    When a family purchases a home with a loan from a bank, the bank typically places a mortgage (a type of charge) on the property. In this scenario, the bank is the chargee because it holds a legal claim over the house. This claim ensures that if the family defaults on their loan payments, the bank has the right to pursue legal remedies, such as foreclosure, to recover the outstanding debt.

  • Example B: Business Asset Loan

    A small manufacturing company seeks a loan to upgrade its machinery. The lender agrees, but requires the company to offer its existing equipment and future inventory as security. The lender then registers a charge against these business assets. Here, the financial institution providing the loan is the chargee, holding a legal interest in the company's assets to protect its investment should the company fail to repay the loan.

• 2. One formally accused of a crime:

  In a criminal law context, a chargee refers to a person who has been formally accused of committing a crime by law enforcement or a prosecuting authority. This means official charges have been filed against them.

  • Example A: Theft Accusation

    Following an investigation into a series of shoplifting incidents, the police gather evidence and formally accuse an individual, filing criminal charges against them. This individual is then considered the chargee in the subsequent legal proceedings, as they are the one facing the formal accusation of theft.

  • Example B: Corporate Misconduct

    After an extensive audit, a former CEO of a large corporation is indicted by a grand jury for alleged embezzlement and financial fraud. The CEO becomes the chargee in this high-profile case, indicating that they are the subject of the formal criminal charges brought by the state regarding their alleged corporate misconduct.