Afianz

Afianz is a term used in Spanish-language finance and law to denote a guarantee or surety that a third party provides to secure an obligation. It is closely related to fianza or garantía, and is often used in contexts such as loans, leases, or court bonds. The word derives from afianzar, meaning to secure or strengthen. In practice, afianz appears most often in Latin American jurisdictions, and may appear in forms such as afianzamiento, afianzante, or afianzado. Its exact meaning and the rules that apply vary by country and contract.

An afianz is created when a guarantor commits to cover the creditor's loss if the debtor defaults, up to a specified limit. The guarantor can be required to pay principal, interest, penalties, and costs. The debtor remains primarily liable, and the guarantor's obligation is usually secondary or contingent.

Typical features include a defined scope, term, release conditions, and procedures for notice and claim. Many jurisdictions require the guarantor to be solvent and to demonstrate creditworthiness. Subrogation rights allow the guarantor to pursue the debtor for recovery after payment. The arrangement is commonly governed by a contractual agreement that sets out the conditions under which the guarantee may be invoked and the consequences of enforcement.

Common use cases include loan guarantees, rental guarantees, construction bonds, and court or administrative bonds. Because guarantees shift risk from a creditor to a third party, the use of an afianz involves careful risk assessment and contract drafting. See also fianza, guarantee, surety, bond.