: Guarantors must exercise reasonable care to check that the documents appear on their face to be in accordance with the terms of the guarantee. Transition to URDG 758
stands for the Uniform Rules for Demand Guarantees , published by the International Chamber of Commerce (ICC). It was the first widely accepted international set of rules for demand guarantees (e.g., bid bonds, performance guarantees, advance payment guarantees). urdg 458 pdf
URDG 458 was revised and replaced by URDG 758 in 2010. While URDG 458 is no longer current, it is still referenced in older contracts or legacy guarantee texts. : Guarantors must exercise reasonable care to check
| Question | Answer | |----------|--------| | | The 2020 revision is copyrighted by the ICC; they sell it as a PDF. Free copies are typically older versions (1993/1995) that are now in the public domain. For the current rule, purchase from the ICC or obtain through a member institution. | | Is the “on first demand” clause optional? | No. It is a mandatory requirement under Rule 1.1 and 2.2. Without it, the instrument is not a demand guarantee and may be treated as a performance bond, which has different enforceability. | | What happens if the beneficiary’s demand contains a typo? | If the typo is minor and does not affect the essence (e.g., “Bank” vs. “bank”), the guarantee remains enforceable (Rule 5.1). If it changes a material term (e.g., amount, expiry), the bank can refuse payment. | | Can the applicant cancel the guarantee before expiry? | Only if the guarantee expressly allows early termination (e.g., a “cancellation clause”). Otherwise, the guarantee is irrevocable until expiry. | | Do I need to register the guarantee with any authority? | No registration is required under URDG 458. However, some jurisdictions (e.g., certain African or Middle‑Eastern countries) may have local filing requirements for public policy reasons. | | How does URDG 458 differ from UCP 600? | URDG 458 governs demand guarantees (standby letters of credit) while UCP 600 governs commercial letters of credit . The two regimes are parallel but distinct; they can be used together in complex trade structures. | URDG 458 was revised and replaced by URDG 758 in 2010