Article-19 URDG-758-Examination

This article sets out the principal provisions relating to the examination of a demand and very similar to Article-14 of UCP-600, one can easily understand if handles the commercial letter of credit.

 

Article-19 URDG-758-Examination

A. The guarantor shall determine, on the basis of a presentation alone, whether it appears on its face to be a complying presentation.

An examiner is not required to make any enquiry about any aspect of the presentation in order to be able to determine whether it is a complying presentation. However, one need to check that whether the demands comply with the terms and conditions of a guarantee, URDG-758 and ISDGP; only bases upon the guarantor’s visual examination of the documents. It cannot hold someone else’s understanding nor information obtained from some other sources such as search engine. The sentence ‘on its face’ does not refer to a simple front and the back of the demand/document but extends to the review of data within a document in order to determine that a presentation complies with guarantee and rules described in URDG758

B. Data in a document required by the guarantee shall be examined in context with that document, the guarantee and these rules. Data need not be identical to, but shall not conflict with, data in that document, any other required document or the guarantee.

Data shall be examined ‘in context with the document itself, the guarantee and the rules’. Data appearing in a document must not be in conflict with other data appearing on that document, any other stipulated document or in guarantee. If data in document is found to be in conflict, the demand will be regarded as discrepant. It need not to be identical/exact as data in a guarantee but when we read all together, guarantee’s requirement must fulfils.

C. If the guarantee requires presentation of a document without stipulating whether it needs to be signed, by whom it is to be issued or signed, or its data content, then in that case:

  • An examiner will accept the document as presented if its content appears to fulfil the function of the document required by the guarantee and does not conflict with other data in a same document, guarantee and other stipulated documents.
  • It is not necessary to check the document signing authority or detailed examination like letter of credit, if the document is signed, any signature will be accepted and no indication of name or position of the signatory is necessary.

D. If a document that is not required by the guarantee or referred to in these rules is presented, it will be disregarded and may be returned to the presenter.

This sub article is similar to article 14 (g) UCP-600, If a document that is not called for and required by the guarantee or referred to in these rules is presented, it will be disregarded and may be returned to the presenter.’

E. The guarantor need not re-calculate a beneficiary's calculations under a formula stated or referenced in a guarantee.

An examiner need not to re-calculate the calculation given on the demand or any other document and final amount must be considered.

F. If there is a requirement under guarantee for a document to be legalized, visaed, certified then the guarantor shall consider a requirement for a document as satisfied by any signature, mark, stamp or label on the document which appears to satisfy that requirement.

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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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