International Standard Demand Guarantee Practice (ISDGP) for URDG 758 - eBook

INTERNATIONAL STANDARD DEMAND GUARANTEE PRACTICE

Table of contents

INTRODUCTION... 6

1. APPLICATION OF ISDGP... 8
2. DEFINITIONS... 9

Applicant... 9

Application... 9

Authenticated... 10

Beneficiary... 10

Business day/business hours...11

Charges... 12

Complying presentation.... 12

Counter-guarantee... 12

Demand... 13

Guarantor... 13

Guarantor’s own records... 14

Instructing party.... 14

Presenter... 14

Signed... 15

Other terms not defined in the URDG... 15

1. DRAFTING THE GUARANTEE... 16

General drafting considerations... 16

Reference to the underlying relationship... 16

Use of generic terms to describe an issuer of a document.... 17

Expiry terms.... 17

Governing law... 18

Jurisdiction... 19

Exclusions... 19

1. ISSUING THE GUARANTEE.... 20

When is a guarantee ‘issued’?.... 20

1. ADVISING A GUARANTEE... 21
2. AMENDMENTS... 22
3. PRESENTATION... 22

Premature presentation..... 22

To whom presentations may be made?... 23

Presentations in electronic/digital form... 23

Original/Copy of a document.... 24

INTERNATIONAL STANDARD DEMAND GUARANTEE PRACTICE

Identification of guarantee under which a presentation

is made... 26

Documents to be issued or countersigned by an applicant... 26

1. DEMANDS 26

Supporting statement(s) under article 15(a) or (b)... 26

Form and content of demand... 27

Date of demand... 28

Partial demand and multiple demands; amount.... 28

Corrected Presentations, including demands.... 29

1. EXTEND OR PAY DEMAND 30

Examination and suspension... 31

Repeating a demand during the suspension period... 31

Suspension period by counter-guarantor... 32

No need to repeat or update demand.... 32

No interest on suspension period... 32

1. EXAMINATION 33

Standard for determination of compliance... 33

Presenting non-required information in a required document / Presenting a non-required document.... 34

Recalculations.... 34

Typographical errors... 35

Abbreviation of corporate forms... 35

Punctuation marks in a document.... 35

Document issuers... 35

Signatories... 36

Countersignature by beneficiary’s bank / Authentication

of beneficiary signatures... 36

Examination timeline.... 37

1. PAYMENT 37

Date of payment.... 37

Set-off.... 37

Currency of payment... 38

Subrogation... 38

Payment without a demand... 39

1. NON-COMPLYING DEMAND, WAIVER AND NOTICE... 39

Notice of rejection / Waiver... 39

Rejection terms... 40

Corrections to a non-complying demand.... 40