Article-8 URDG-758-Content of Instructions and Guarantees

Guarantees are documentary in nature and purely based on the terms and conditions along with the rules and law as applicable. Let’s look at the article 8 of URDG-758 to understand the require parties and details which need to be mention to make it valid conditional undertaking.

Article-8-URDG-758
Content of instructions and guarantees

All instructions should be clear in the application received from either applicant or instructing party to issue the guarantee. When guarantee is being issued all the information must be clearly re-keyed as per application or the requirement. It should avoid excessive details which may make it lengthy and complicated.

It is recommended that all guarantees should specify:

  • Applicant with name and address.
  • Beneficiary with name and address.
  • Guarantor's name with issuing branch address.
  • A reference number or other information identifying the underlying relationship on which guarantee may be based.
  • A reference number or other information identifying the issued guarantee or, in the case of a counter-guarantee, the issued counter-guarantee. These number may be given by guarantor in the guarantee as guarantee number.
  • The maximum amount payable and the currency in which it is payable.
  • The expiry of the guarantee, it may be expiry date, event or after three years from date of issue if no date or event are mentioned.
  • Any terms for demanding payment.
  • Mode of presentations, whether a demand or other document shall be presented in paper and/or electronic form.
  • The language of any document specified in the guarantee, if no language specified, a third party document may be in any language and documents issued by beneficiary or the applicant must be in the language of the guarantee.
  • The party liable for the payment of any charges.
We can mention additional require details as per applicant or instructing party's instruction.

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Chandan Kumar Yadav
My name is Chandan Kumar Yadav CDCS, CSDG, CITF, PGDIBO,AML-KYC, CCFE, MLIBF, CSF, 6SIGMA a trade finance professional with an experience of 11 years whereas worked with several stages of letter of credit, bank guarantee and on other payments methods of trade transactions such as documentary collection, open accounts, SBLC etc., I have a fair understanding of Trade Based Money Laundering as well, Blogging related to Trade Finance is my passion and I want to share which I know and learn from others, I have worked with Wells Fargo, Yes Bank Limited and Bank of America, India which helped me to gain knowledge, view of Trade Finance and importance of International Trade in world's economy. Trade Finance is thumping product, everyday we are learning something new so in order to keep learning I started this as one of the platform. . Let's Learn Together

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