Uncategorized URDG 458 OR URDG 758? By Mr Old Man Posted on November 29, 2014 3 min read 0 2 11,171 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION Many guarantee formats still refer to URDG 458 , customer banks are afraid to change to URDG 758 to avoid refusal of their guarantees.. 1. Is URDG 458 still in use? 2. Can we get a brief compression between URDG 458 & URDG 758? ——- ANSWER Hi, According to Article 1 (d) URDG 758, where a demand guarantee or counter-guarantee issued after 1 July 2010 states that it is subject to the URDG without stating whether the 1992 version or the 2010 revision is to apply or indicating the publication number, the demand guarantee or counter-guarantee shall be subject to the URDG 2010 revision. So, where a demand guarantee states it is subject to URDG 458 whether it is issued after 1 July 2010, then URDG 458 rules shall still apply and are binding all parties thereto. Practice has shown that some customers request their banks to issue guarantees subject to URDG 458 because they do not know that there has been URDG 758. Some agree to change to URDG 758 when explained that URDG 758 is clearer, more precise and more comprehensive than URDG 457, some others do not agree to change because the guarantee form subject to URDG 458 is one of the documents required for tender submission; they do not want to lose the tender just because of such change. URDG 758 became effective 01 July, 2010, As said in its introduction, the new URDG 758 do not merely update URDG 458; they are the result of an ambitious process that seeks to bring a new set of rules for demand guarantees into the 21st century, rules that are clearer, more precise and more comprehensive. Therefore, it is recommended that nowadays guarantees be issued subject to URDG 758. Kind regards, N.H.Duc P/S: Q&A is quoted from DCPro Forum of 27 Nov, 2014
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?