Aval

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Aval (or endorsement) is a shared-in-common commitment of payment of an obligation in favor of the creditor or beneficiary. It is granted by a third party, in case the first party does not fulfill the obligation of the payment of a credit title.

The endorsement implies the will of a third party unilaterally immersed in the title. This person is called a guarantor. The third party (guarantor) commits himself to cover the payment of the amount of the credit title and its interest, in case the original debt (or guarantee) does not fulfill his or her obligation.

Normally the person seeking a loan may require a guarantor for the loan if the loan seeker's credit is inadequate. This demonstrates the bank or loaning agency that, if the person receiving the loan defaults, the guarantor can be held responsible for the remainder of the loan left unpaid.