Avalizor (noun):
1. A person or entity who guarantees the payment of a debt or the fulfillment of an obligation on behalf of another party, typically by providing a written guarantee or surety bond.
2. In financial and legal contexts, an avalizor acts as a co-signer or guarantor for a loan, lease, or other financial agreement, assuming responsibility for the debt or obligation if the primary debtor fails to fulfill their obligations.
3. The role of an avalizor is often required by lenders or landlords to mitigate the risk of default or non-payment, providing an additional layer of security and assurance.
4. The avalizor’s commitment to guarantee the debt or obligation is legally binding, and they may be held liable for the full amount owed if the primary debtor defaults.
5. The term “avalizor” is commonly used in commercial transactions, particularly in banking, real estate, and corporate finance, where the involvement of a guarantor is necessary to ensure the financial stability and reliability of the transaction.
Avalizor refers to a person or entity that provides a guarantee or surety for the payment of a debt or the performance of an obligation by another party. The avalizor essentially becomes a co-debtor or guarantor, assuming liability for the debt or obligation in case the primary debtor fails to fulfil their obligations.
The role of an avalizor is commonly seen in financial transactions, such as loans or credit agreements, where a third party agrees to guarantee the repayment of the loan or the fulfilment of contractual obligations. The avalizor’s liability is typically secondary to that of the primary debtor, meaning that the creditor must first seek payment from the primary debtor before turning to the avalizor.
The avalizor’s guarantee is usually evidenced by a written document, such as an aval or a surety agreement, which outlines the terms and conditions of the guarantee. This document may specify the extent of the avalizor’s liability, the duration of the guarantee, and any other relevant provisions.
In legal proceedings, if the primary debtor defaults on their obligations, the creditor may initiate a claim against both the primary debtor and the avalizor to recover the outstanding debt or seek performance of the obligation. The avalizor may be held liable for the full amount of the debt or obligation, depending on the terms of the guarantee.
It is important for both the primary debtor and the avalizor to carefully consider the implications of entering into an avalizor arrangement. The avalizor should assess the creditworthiness and reliability of the primary debtor before agreeing to provide a guarantee. Additionally, the primary debtor should be aware that their failure to fulfil their obligations may result in legal action against both themselves and the avalizor.
Overall, an avalizor plays a crucial role in providing financial security and assurance to creditors, allowing them to mitigate the risk associated with lending or entering into contractual agreements.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 29th March 2024.
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