Comparative law notes
"Guaranty" is broader in meaning than "aval". Pursuant to section 897 of the Brazilian Civil Code, "aval" is a guarantee made to secure payment of a negotiable instrument. It is similar to the American law concept of "accommodation" provided for in paragraph 3-419 of the the Uniform Commercial Code, which reads: (a) If an instrument is issued for value given for the benefit of a party to the instrument ("accommodated party") and another party to the instrument ("accommodation party") signs the instrument for the purpose of incurring liability on the instrument without being a direct beneficiary of the value given for the instrument, the instrument is signed by the accommodation party "for accommodation."
