The act of having a third party (usually a bank or lending institution) guarantee the obligations of a buyer to a seller per the terms of a contract such as a promissory note or purchase agreement. The bank, by "avalizing" the document (usually "by aval" will be written on the document itself), acts as a cosigner with the buyer in the transaction.

To avalize means "to give one's accord". It is a rarely used but is an effective method of securing the rights of the receiving party in the transaction. This is an obligation that a bank will only take on with lucrative customers. It is seen as an act of good faith by both parties.

Investment dictionary. . 2012.

Look at other dictionaries:

  • avaliser — [ avalize ] v. tr. <conjug. : 1> • 1875; a remplacé avaler; de 2. aval ♦ Donner son aval, cautionner par un aval. Avaliser un effet de commerce. ♢ (v. 1950) Fig. Appuyer, donner caution à. Avaliser une décision. ● avaliser verbe transitif… …   Encyclopédie Universelle

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