What does "per aval" mean?

Written by Editorial Team | Last Updated: August 2026

The legal and financial term "per aval" originates from commercial law and banking, referring to a specialized form of financial guarantee or endorsement added to a negotiable instrument like a promissory note or bill of exchange. When a bank or third party signs per aval, they act as an avalist, providing a binding collateral guarantee that they will settle the financial obligation if the primary debtor defaults, thereby strengthening the creditworthiness of the instrument.

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