How many articles in URDG 758?
35 articles
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.
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 Uniform Rules for demand guarantees?
An international set of rules produced by the International Chamber of Commerce governing the rights and obligations of parties under demand guarantees. The current version of the URDG is URDG 758.
What is Uniform Rules for demand guarantees ICC Publication No 458?
The new ICC Uniform Ru/es for Demand Guarantees (ICC Publication no. 458) reflect more closely international practice in the use of demand guarantees whilst at the same time preserving the goal of the original rules to balance the interests of the different parties and to curb abuse in the calling of guarantees.
What is counter bank guarantee?
instructs a second bank (the guarantor) to issue a demand guarantee in favor of a specified beneficiary; and. guarantees to the second bank (this guarantee is the counter-guarantee) that it will be compensated for its payment to the beneficiary under its demand guarantee.
What is guarantee in banking?
What Is a Bank Guarantee? The bank guarantee means that the lender will ensure that the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank will cover it. A bank guarantee enables the customer, or debtor, to acquire goods, buy equipment or draw down a loan.
What is URDG banking?
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. In general, the URDG guidelines outline the rights and obligations of parties under demand guarantees.
What is URDG clause?
Who is a counter guarantor?
A counter-guarantee transaction has two parts: In the first part, called the counter-guarantee, a bank (the counter-guarantor): instructs a second bank (the guarantor) to issue a demand guarantee in favor of a specified beneficiary; and.
What is a counter indemnity?
A counter-indemnity is an obligation to make a reimbursement in relation to a primary indemnity, guarantee, bond or any similar arrangment. For example, we may be a corporate supplier in a commercial contract. If the performance bond is called, we must indemnify the bank under the counter-indemnity.
Can bank guarantee be transferred?
The procedure for transfer of bank guarantees will be similar to that of collateral deposited by the members. The Clearing and Settlement department of the exchange (CSD) would arrange to transfer the bank guarantees from one segment to another, at the end of the trading day on member’s request.