Article-18 URDG 758

A demand need to contain the reference for the guarantor to identify the relationship with the guarantee. Each demand is separate and a guarantor may start the examination process once able to identify the guarantee reference. 


Article-18 URDG
Separateness of each demand


A. A demand that is not a complying demand or withdrawing a demand does not waive or otherwise prejudice the right to make another timely demand, whether or not the guarantee prohibits partial or multiple demands.

Each demand is separate from other demand. Even If a partial or multiple demands are prohibited, and beneficiary presents a non-complying demand which rejects, then the beneficiary can present another demand which comply as per guarantee terms on or before maturity date or event. A demand will not be counted, by the time it is comply and guarantor pays off.

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B. Payment of a demand that is not a complying demand does not waive the requirement for other demands to be complying demands.

Payment of a non-complying demand by guarantor does not waive the requirement in the demand or document for subsequent demands.

For an example if guarantor pays a non-complying demand mistakenly and settles the beneficiary account, this does not mean that the guarantor will do the same mistake or accept the same discrepancy which misses in the initial demands. A guarantor can reject the subsequent demands within 5 business days following the day of receipt of non-complied demands.

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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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