Legal Definitions - avails

Avails refers to the profits, proceeds, or benefits obtained from a transaction, an asset, or a financial instrument. It represents the total amount of money or value received, often after deducting associated costs. While commonly used in the context of selling property, it also applies to various financial benefits available from an insurance policy, such as its cash value, dividends, or the amount received if the policy is surrendered or borrowed against.

• Sale of a Business: When a small business owner sells their bakery, the avails would be the total amount of money they receive from the sale after paying off any outstanding business debts, closing costs, and taxes associated with the transaction.
  This illustrates avails as the net proceeds or profit generated from the sale of a significant asset, in this case, an entire business.
• Insurance Policy Loan: An individual holds a whole life insurance policy that has accumulated a significant cash value over the years. They decide to take out a loan using the policy as collateral. The maximum amount they can borrow against the policy's cash value would be considered the avails of the policy in this context.
  Here, avails refers to the financial benefit or value that can be accessed from an insurance policy without fully surrendering it, specifically the loan value.
• Auction of Collectibles: A collector decides to sell off a rare stamp collection at an auction. After the auction house takes its commission and covers the advertising costs, the remaining sum of money paid to the collector represents the avails from the sale of the collection.
  This example demonstrates avails as the proceeds obtained from selling personal property or assets, after deducting the expenses incurred during the sale process.