What is avalisation?

Answer 1

To add an Aval is the specific endorsement on a Bill of Exchange or Draft by a bank, which guarantees payment should the Drawee (the Importer) default on payment of the bill at maturity. It should be noted that there can exist some important legal difficulties in certain countries. For instance, in the UK the practice of avalisation is not recognised within the UK Bills of Exchange Act, 1882.