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LIABILITY OF THE GUARANTOR BY AVAL OF A BILL OF EXCHANGE

LIABILITY OF THE GUARANTOR BY AVAL OF A BILL OF EXCHANGE

Despite the fact that the same term was used under the Polish law (i.e. „poręczenie”) an aval is a separate institution from civil suretyship. Therefore unfortunately even some lawyers who do not deal with law on bills of exchange may be misled. An aval is a collateral securing receivable like civil suretyship however the rules under which a giver of an aval is liable are different and more strict. No wonder that aval is willingly applied in debtor creditor relations thus putting the creditor in a stronger position.

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