The International Standard Demand Guarantee Practice for URDG 758 (ISDGP) is the indispensable companion to the ICC Uniform Rules for Demand Guarantees 758 (URDG). It represents international best practice in demand guarantees. It supplements, but does not amend, the URDG.
The 215 international standard practices in this publication have been collected through a decade of the application of the URDG. They record best practice in demand guarantees throughout the lifecycle of the guarantee: the drafting and issue of guarantees and counter- guarantees, presentations, examinations and payments, rejections and expiry, transfers and assignments, and more.
The ISDGP demonstrates how the principles and content of URDG 758 should be integrated into day-to-day demand guarantee practice, in all types of demand guarantees, international or domestic, in all sectors of trade and industry, regardless of when or where the guarantee or counter-guarantee is issued.
Insights and best practices are combined in this first edition of the ISDGP for the benefit of instructing parties/applicants, beneficiaries, guarantors and counter- guarantors. Compliance with the ISDGP may avoid mishaps that lead to unintended consequences, costly payment delays, and disputes.
This publication should always be read in conjunction with URDG 758.
eBook: 814E International Standard Demand Guarantee Practice
Code ISBN : 978-92-842-0589-9 Weight : 0.1500 kgs Number of pages : 60 Publishing date : 2022 Language : English Format in cm : 13.5*23 INTERNATIONAL STANDARD DEMAND GUARANTEE PRACTICE
Table of contents
INTRODUCTION... 6
APPLICATION OF ISDGP... 8
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
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
ISSUING THE GUARANTEE.... 20
When is a guarantee ‘issued’?.... 20
ADVISING A GUARANTEE... 21
AMENDMENTS... 22
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
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
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
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
PAYMENT 37
Date of payment.... 37
Set-off.... 37
Currency of payment... 38
Subrogation... 38
Payment without a demand... 39
NON-COMPLYING DEMAND, WAIVER AND NOTICE... 39
Notice of rejection / Waiver... 39
Rejection terms... 40
Corrections to a non-complying demand.... 40
INTERNATIONAL STANDARD DEMAND GUARANTEE PRACTICE
M. REDUCTION AND EXPIRY OF A GUARANTEE... 40
Payment reductions... 40
Total or partial release... 40
Article 25: overriding termination terms... 41
Automatic extension of guarantees... 42
- FORCE MAJEURE... 42
O. TRANSFERS... 44
Amount of transfer... 44
Transfers of amended guarantees... 44
Documents required of the transferee beneficiary... 44
Transfers by operation of law... 45
- ASSIGNMENT OF PROCEEDS... 45
Q. MISCELLANEOUS... 46
Fraud... 46
Provisional court measures... 46
Sanctions clauses... 47
INDEX OF CORRESPONDANCE BETWEEN URDG AND ISDGP... 48
ICC TRADE FINANCE PUBLICATIONS... 52
ICC DIGITAL LIBRARY... 53
ABOUT THE INTERNATIONAL CHAMBER OF COMMERCE... 54