Section Code: 0938 - 0940
Thai Civil and Commercial Code
Chapter 2: Bills of ExchangePart 3: Aval
Section 938. Aval (Guarantee)
Payment of a bill of exchange may be wholly or partly guaranteed by a surety called "aval".
An aval may be given by a third person or even by any party to the bill.
Section 939. How to Give an Aval
An aval is either given on the bill itself or on an allonge.
It is expressed by the words "good as aval" or by any equivalent expression. It is signed by the giver of aval.
It is deemed to be constituted by the mere signature of the giver of the aval placed on the face of the bill, except in the case of the signature of the drawee or of the drawer.
An aval must specify for whose account it is given. In default of this, it is deemed to be given for the drawer.
Section 940. Bounding Guaranteed
The giver of an aval is bound in the same manner as the person whom he guarantees.
His engagement is valid even when the liability which he has guaranteed is inoperative for any reason other than defect of form.
He has, when he pays the bill of exchange, the right of recourse against the person whom he has guaranteed, and the persons responsible for the latter.