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Avalization: a service in which the bank promises to pay, fully or partially, promissory notes issued to a supplier as a form of payment. This service can be of use for parties to a contract who want an assurance that the promissory note will be paid in due time.
Aval is a guarantee that the bank will pay the amount which the promissory note issuer must pay under a promissory note. If necessary, the guarantor may provide a promissory note safekeeping service.
The advantages of this service include:
Customers taking advantage of avalization service will receive a payment instrument with a bank guarantee. An aval can be canceled only if the promissory note is found to be invalid.
MTB Bank offers residents and nonresidents of Ukraine a complex of securities safekeeping services and transactions with securities. To find out about the terms and conditions of these services, call our number above.
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