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URDG 758
The URDG 758 are the Un iform Rules for Dema nd Guara ntees - effective 01 July 2010.
Foreword
This revishe sta ndard text for dema nd guara ntees worldwide.
Jea n Rozwadowski
Secretary General
International Chamber of Commerce
January 2010
Introduction
The new URDG 758 succeed URDG 458. Over 17 years of practice (1992 - 2009), URDG 458 proved to be both successful and reliable. They were used by banks and businesses across continents and industry sectors. URDG 458 were endorsed by international organizations, multilateral financial institutions, bank regulators, lawmakers and professional federations. In contrast to the failed Uniform Rules for Contract Guarantees (URCG325), URDG458 reflected the reality of the international demand guarantee market and struck the most reasonable balance between the interests of all the parties involved. By choosing to instruct a guarantor to issue a demandguarantee subject to URDG,applicants renounced their ability to obstruct payment for reasons derived from their relationship with the beneficiary. In turn, beneficiaries were expected to state in general terms - but not to justify, establish or prove - the nature of the applicant's breach in the performance of the underlying relationship. Finally, because a demandguarantee is an independent undertaking, guarantors were assured that their commitment was subject to its own terms. They were insulated from the performance contingencies of the underlying relationship.
Their incremental use, backed by the support of ICC, enabled URDG 458 to make a critical contribution towards levelling the playing field among demand guarantee issuers and users regardless of the legal, economic or social system in which they operate.
Yet, URDG458 formed the first attempt by ICC to codify independent guarantee practice. Over the years, the application of their provisions shed light on the need for drafting adjustments, clarifications, expansion of scope or clear corrections of th