Avalize Law and Legal Definition

Avalize is the process by which a third party usually a bank guarantees the undertaking of the drawee to meet their responsibility under a bill of exchange. 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.

Aval, is defined as an independent guaranty used in civil law countries, often by banks and often with promissory notes or other commercial obligations. The aval may consist of the words "by aval" with the bank's signature. [Holifield v. BancorpSouth, Inc., 891 So. 2d 241, 243 (Miss. Ct. App. 2004)].