Differences between Aval and Surety

Before knowing the differences between Aval and Surety it is more important to know what is a guarantee and its types.

A warranty is the way to ensure the creditor will receive payment of the debt, plus legal accessories, including interest, penalties, etc.

According to the "Dictionary for Jurists Juan Miguel Palomar" A warranty is the action and effect of strengthening the provisions.

The Civil Code tells us that there are three types of guarantees: Prenda, Bond or Mortgage

1) Deposit

It is a contract whereby a person agrees with the creditor to pay for the debtor, if he does not. Normally bail is used in a lease for the rental payment is guaranteed by the contract, ie, whether the contract is valid for one year, the income will be guaranteed by that deadline.

In some cases, landlords also request a bail request signing a guarantor as can happen that the tenant fails to make payments of rent and will be the guarantor who guarantees these payments.

2) Turn

It is a real right constituted a disposal of immovable property to ensure compliance with an obligation and its preference in payment. (Article 2856 of the Civil Code for the City of Mexico or its correlative inside the Republic)

3) Mortgage

It's a security interest in goods that are not delivered to the creditor. In case of default of the secured obligation, the creditor is entitled to the right so that the debt is paid.

Another example of bail, would be delivering the food debtor to ensure payment of alimony, it may be on bail or pointing a property for collateral and will be registered with the Public Registry of Property and this would be considered a guarantee pledge.

When hiring a deposit, surety, insurance and bonding institutions, ask them Aval with property to be designated to guarantee payment. (THE BONDING by Federal Institutions Act regulates insurance and bonds)

The way banking institutions ensure that their loans granted will be covered, is through mortgage, that being a real right, is also registered with the Public Registry of Property. This is so that takes effect against third parties and, taking these loans to be preferred to other debts that have the debtor.

Differences between Aval and Surety

The differences between Aval, Guarantor or joint obligor , depend on the area of law or branch intended to be used, however, the naming someone as Aval, Guarantor or joint obligor does not invalidate the obligation to guarantee the obligations.

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