International Standard Demand Guarantee Practice (ISDGP) for URDG 758

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 26
• 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 40
• 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