Avalize

  

This sounds really intense. Like, "doctor, don't avalize her yet! Let's at least wait for those last test results to come in." But it's actually a financial term.

It means that a bank (or some other financial institution) puts an aval on something. An aval is a kind of endorsement or guarantee (See: Aval). Maybe a little intense if there's big money involved, but not call-the-doctor intense.

Related or Semi-related Video

Finance: What is a Co-signer?7 Views

00:00

Finance a la shmoop what is a cosigner? well it's just this oh wait

00:08

that goes in the trigonometry video people why don't you do this all right [Man discussing trigonometry]

00:13

never mind cosigner it's this... okay all right we're in finance so a cosigner is

00:19

this there we go it's your mom you really wanted that

00:24

condo with the nice view of the park the cool arts district and the local dentist [Dentist office building]

00:29

office nearby for some weird reason but the building owners just didn't trust

00:33

you alone to make the payments yourself which makes sense given that you're a

00:37

part-time barista who takes at least one sick day every week you blame them so [Sick days marked on calendar]

00:42

your condo dream seems a well a bit out of reach luckily for you the bomb

00:48

or Bank of mom came in handy when she co-signed the loan along with you all [Mum signing loan agreement]

00:54

right what does that co-signing mean well it means that you are the first one

00:59

obliged to pay the monthly payments on your loan but if you don't well then the

01:03

Bank of America way bigger than the bank of mom can come after mom and she is

01:09

directly legally obligated to pay the loans that you promised - hey so yeah

01:16

you got your condo dream but mom's living quarters aren't so spacious yeah [Mum laying in a car backseat]

01:21

well you made her co-sign for your deadbeat self hanging her butt up to dry

01:26

and now she's well enjoying the view from her SUV parked on the curb of the [SUV window winds down and Mum appears]

01:31

road outside the dentist hang in there mom you'll get a better

01:35

parking lot slot with a view someday

Up Next

Finance: What is a Surety Bond?
0 Views

A surety bond is an agreement between three parties in which one party guarantees that a second party will fulfill a promise to the third party.

Finance: What are T-Notes, T-Bonds and TIPS?
19 Views

What are T-Notes, T-Bonds, and TIPS? T-Notes are debt securities (like bonds) that are issued by the government and mature within one to 10 years....

Finance: What are General Obligation, Revenue and Double-barreled Bonds?
92 Views

What are general obligation, revenue and double-barreled bonds? General obligation bonds are backed by the place that issued them. So rather than b...

Finance: What is Counterparty Risk?
9 Views

What is Counterparty Risk? Counterparty risk is the risk to either party within a transaction that the other will not or be unable to abide by the...

Find other enlightening terms in Shmoop Finance Genius Bar(f)