What is URDG clause?
a) The Uniform Rules for Demand Guarantees (“URDG”) apply to any demand guarantee or counter-guarantee that expressly indicates it is subject to them. They are binding on all parties to the demand guarantee or counter-guarantee except so far as the demand guarantee or counter-guarantee modifies or excludes them.
What is ICC Publication No 758?
The ICC Uniform Rules for Demand Guarantees No. 7583 (URDG) is a set of voluntary contractual rules, published by the International Chamber of Commerce (ICC) with the aim of regularising and creating a standard set of international banking practice on demand guarantees and counter demand guarantees.
What is URDG bank guarantee?
What Are the Uniform Rules for Demand Guarantees (URDG)? The Uniform Rules for Demand Guarantees (URDG) refers to a set of international guidelines produced by the International Chamber of Commerce (ICC) and adopted in 1991.
How many articles are there in URDG?
The 35 articles in URDG 758 set out the liabilities and responsibilities of each party, the process to present a demand, the expiry conditions and how to deal with amendments and transfers of guarantees and counter-guarantees. The rules are clear and concise, and exist in 21 languages.
What is the latest URDG?
URDG 758
The current version of the URDG is URDG 758.
What is the latest UCP version?
UCP 600
The current version of the UCP, published in 2007, is ICC Publication No. 600, commonly referred to as UCP 600. The UCP does not have force of law, but must be incorporated by express reference in the commercial letter of credit.
What is Uniform Rules for Demand Guarantees ICC Publication No 458?
458). These 1978 rules required the production of a judgment or an arbitral award as a condition of the beneficiary’s right to payment. (2) However, these rules were unacceptable to owners who insisted on a guarantee that was immediately enforceable. Hence, these rules were rarely used.
What is Uniform Rules for demand guarantees ICC Publication No 458?
What is first demand guarantee?
A guarantee that imposes a primary obligation on the issuer to pay the beneficiary on its first demand (or on demand) where the primary obligor fails to perform the contract.
What is counter guarantee?
A Counter Guarantee may be defined as: “An undertaking given by the counter-Guarantor to another party which names that party as the Beneficiary to procure the issue by that other party of a local guarantee to be issued to the Beneficiary in the underlying contract/relationship.”
What UCP 700?
700 (“UCP”) are rules that apply to any documentary credit (“credit”) when the text of the credit expressly indicates that it is subject to these rules. They are binding on all parties thereto unless expressly modified or excluded by the credit.
How many days are permitted under UCP 600 to the beneficiary?
UCP 600 sub-article 14 (b) no longer refers to a reasonable time and limits the examination period to a maximum of five banking days following the day of presentation.