URDG-758-Artile-14-Presentation

A guarantee is an irrevocable undertaking issued by guarantor's to honor the demands upon presentations of valid demands as per terms of the guarantee.



URDG-758-Artile-14-Presentation

A. A presentation can be made only to the guarantor not to an agent of the guarantor and:

  • Presentation must be made at the place indicated in the guarantee for presentation. If no place is specified, the presentation must be made at the place of issue of the guarantee.

  • A Presentation must be made on or before expiry date or event. This means that the documents must be delivered to the guarantor on or before the expiry date or event. Only dispatch of the presentation before expiry is not sufficient.

B. A presentation has to be complete unless it indicates that it is to be completed later. In that case, it shall be completed on or before expiry and the examination period of 5 business day’s start from the following the day when it is completed.

This sub-article allows that presenter can make an incomplete presentation if that presentation indicates that it is to be completed later. However, it must still be completed before the expiry of the guarantee. In such cases, the guarantor cannot reject the presentation.

C. When the guarantee indicates that a presentation is to be made in electronic form it should specify the format such as emails/URL ie. System for data delivery and the electronic address for that presentation. If the guarantee does not specify, a document may be presented in any electronic format that allows it to be authenticated or can also be presented in paper form. An electronic document that cannot be authenticated is deemed not to have been presented.

D. Where the guarantee indicates that a presentation is to be made in paper form through a particular mode of delivery but does not expressly exclude the use of another mode, the use of another mode of delivery by the presenter shall be effective if the presentation is received at the place on or before expiry.

If the guarantee indicates that a presentation in paper form is to be made through a particular mode of delivery, such as via courier, but does not expressly exclude another mode of delivery, the presentation may be made by another mode of delivery, provided that it is delivered to the guarantor at the designated place before expiry.

E. Where the guarantee does not indicate whether a presentation is to be made in electronic or paper form, any presentation must be made in paper form only.

F. Every presentation shall identify the guarantee under which it is made, such as by stating the guarantee’s reference number. If it does not reflect the same, the time for examination 5 business days following the day of receipt shall start on the date of identification. A delay in identification does not result in an extension to the expiry date of the guarantee.

G. Except where the guarantee otherwise provides, documents issued by or on behalf of the applicant or the beneficiary, including any demand or supporting statement, shall be in the language of the guarantee. Documents issued by any other person may be in any language.

Unless and until stipulated in the guarantee, documents issued by or on behalf of the beneficiary or applicant must be in the same language as the guarantee. Documents issued by third party, such as a survey report or transport document, may be in any language. 

Notes: Presentation’ is defined as delivery of a document under a demand guarantee to the guarantor. A correct presentation is known as a ‘complying presentation’ and will be paid to beneficiary. An incorrect presentation will be rejected by the guarantor and will not be paid.

Comments

Post a Comment

My photo
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

Popular posts from this blog

Types of Guarantees/Bank Guarantees

Image
A Bank/Demand guarantee is an irrevocable undertaking issued by the Guarantor/Bank to pay beneficiary in its currency for the maximum amount of the guarantee, upon presentation of the complied demand in documentary form. A demand/bank guarantee must be in writing, either in paper form or in digital form. If it is in paper form, it must be signed and if in electronic form, the identity of the issuer must be authenticated. SWIFT messages are usually used for demand guarantees because they are authenticated. A pdf copy of a demand guarantee may not be enough without a signed and original document. Types of Guarantees/Bank Guarantees
Read more

Article-23, URDG-758- Extend or Pay

Image
URDG 758 article 23 sets out detailed provisions for the handling of an extend or pay demand. Article-23, URDG 758 a. Where a complying demand includes, as an alternative, a request to extend the expiry, the guarantor may suspend payment for a period not exceeding 30 calendar days following its receipt of the demand. First thing to note is that the demand must be a complying demand for this reason. If it is not a complying demand, the guarantor should either reject the demand or ask for a waiver from the counter‑guarantor or instructing party, as the case may be. In case it is a complying demand, the guarantor has the option either to pay the demand or to suspend payment for 30 calendar days following the day of the receipt of the demand. During this period of suspension, the guarantor may make a complying demand under the counter‑guarantee so that the counter‑guarantor would have the sufficient time to contact the applicant or instructing party to make the decision on the basi
Read more

Article-14-UCP-600, Standard for Examination of Documents

The issuing bank issues the undertaking to honour the complying presentation so final liability comes to an issuing bank who examines the documents as per documentary credit, UCP-600, ISBP-745 and, in the case of conforming documents, honours in accordance with its terms and conditions. Usually opening banks require  original transport document to present at their counter or consign to them (to order) as a primary security for an undertaking issued in the form of credit, and releases the document with further endorsement to applicant upon payment or acceptance/debit authority, the applicant will then surrender one original bill of lading to the carrier or its agent to take the delivery of the goods. This “Document of examination” is one of the important and considerable topic, we will touch upon basic standard for examination of documents as per below article.   Article-14-UCP-600,  Standard for Examination of Documents   a. A nominated bank acting on its nomination, a confirming b
Read more