Inseparable from the financial instrument and effectively gives a guarantee and is abstract from the performance of the underlying trade contract. The 1930 Geneva Convention on Bills of Exchange says that the "aval" can be written on the bill itself or on a slip affixed thereto called an "allonge." In certain countries an aval may have an indeterminate legal status and a guarantee may be used as an alternative. The guarantor per aval is a primary obligor.
banking) Payment of a bill of exchange, which is the responsibility of the drawee, can be either completely or partially guaranteed via an aval (join and several gaurantee), where the guarantor places his/her signature on the draft either alone or with corresponding explanation "per aval" or "as guarantor"
A guarantee of the buyer's credit provided by the guarantor, unless the buyer is of unquestioned financial standing. The aval is an endorsement note as opposed to a guarantee agreement.
A guarantee on a negotiable instrument which states that the party providing its aval will pay the instrument upon its maturity if the drawee or obligor fails to fulfil their obligation.
The bank's guarantee of payment of an accepted bill of exchange/draft
The specific endorsement on a Bill of Exchange by a bank. By doing this, the bank guarantees payment in the event that the drawee defaults on payment of the bill at maturity.
A guarantee added to a debt obligation by a third party who ensures payment should the issuing person default.
Typical form of guarantee of the bills (P/N or B/E). It consists basically of the words "per aval" followed by the stamp and the signature(s) of one or more legal representatives of the guarantor. The aval has the decisive advantage of being inseparable from the debt instrument, and of embodying an "abstract" obligation, independent of the developments of the underlying commercial contract.
A form of guarantee, generally given by a commercial bank, on a negotiable instrument. An aval is usually an unconditional guarantee of payment and is not affected by the terms of the underlying transaction. Avals are recognized only in certain countries (mainly European), though usually not in countries with an Anglo-Saxon legal base. Français: Aval Español: Aval
(Continental Europe based) A guarantee of a bill of exchange or promissory note.