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Back to Basics – Bank Guarantees – URDG 758

18/05/2022

June 1978: URCG (Uniform Rules for Contract Guarantees), ICC Publication No. 325. Not successful in supporting the handling of demand guarantees which were, in effect, excluded from the coverage of these rules which were based primarily upon demands / clams that included a judgement or arbitral award.

 

1982: The Model Forms for Issuing Contract Guarantees, ICC Publication No. 406.  A supporting publication to the above Contract Guarantee rules.

 

1992: URDG (Uniform Rules for Demand Guarantees) ICC Publication No. 458. First release of an ICC publication addressing rules for demand guarantees. Achieved relative success but never attained global adoption, partially due to the article covering demands for payment, which was seen by many in the trade community as not being in line with practice.

 

July 2010: URDG (Uniform Rules for Demand Guarantees), ICC Publication No. 758. This revision provided an opportunity to bring all comments, experiences, criticisms and feedback regarding URDG 458, as well as the practice of demand guarantees into a new revised and comprehensive set of rules. This version is more exact and avoids the possibility of misinterpretation which existed with URDG 458. In addition, it is made more transparent and readable by following the logical sequence of a guarantee lifecycle.

 

Articles of URDG 758 can be seen to follow the content of certain rules in ISP98 and articles of UCP 600.

 

 

 

 

 

This subject is covered in far greater detail within our training module ‘bank guarantees in practice' which can be purchased at https://www.tradefinance.training/shop/

 

 

 

 

www.tradefinance.training


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