Aval (bill guarantee)

Aval is a guarantee specific to Turkish negotiable instruments: a third party secures payment of a note, bill or cheque by signing on the instrument itself, usually with a phrase indicating the guarantee. A bare signature on the face of the instrument is in principle also treated as an aval.

The aval giver is liable in the same manner as the person for whom the guarantee was given. This liability is independent: it stands even if the underlying obligation is invalid for any reason other than a defect of form.

In practice, shareholders frequently give aval on notes issued by their companies, turning the company debt into a personal one. Clearly stating the capacity in which a signature is placed on an instrument helps avoid later disputes.