What is meaning of counterparty?

I want to Account B trusts account A for 12000 "USD".

I found two address for prepareTrustline

  1. counterparty in trustline

  2. address who prepare Trustline

is counterparty == Account B and address who prepare Trustline == account A

is this current?

const address = 'rKgcwx6vE6yfzquGrRGPLJahy7RLPogdD2'; // Account B

let counterparty = "rw2NGfT6Yigy6uYv85D19xnWtZdECbeAwY"; //Account A

    const trustline = {

        "currency": "USD",

        "counterparty": counterparty,

        "limit": "12000",

       "ripplingDisabled": true,

        "frozen": false,

        "memos": (


                "type": "test",

                "format": "text/plain",

                "data": "texted data"




    const preparedTx = await api.prepareTrustline(address, trustline);

    const response = api.sign(preparedTx.txJSON, "s.....................")

    const txID = response.id;

    //console.log("Identifying hash:", txID)

    const txBlob = response.signedTransaction;

    const latestLedgerVersion = await api.getLedgerVersion();

    //console.log("Signed blob:", txBlob);

    const result = await api.submit(txBlob)