Demand Guarantee check0 / 1 answered · 0 correct
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Does MT760 automatically mean URDG 758 applies?
URDG 758 and Independence
Learn the rules commonly used for demand guarantees and why independence matters.
What URDG 758 does
URDG 758 is the ICC Uniform Rules for Demand Guarantees. It applies when incorporated into a guarantee or counter-guarantee as provided by the rules.
Independence
Under URDG 758, a guarantee is by its nature independent of the underlying relationship and the application. A counter-guarantee is also independent of the related guarantee and underlying relationships.
Documents, not performance
A guarantor deals with documents presented under the guarantee, not the goods, services or performance to which those documents may relate.
Do not assume the rules
A guarantee may be subject to URDG 758, another set of rules, local law, or bespoke terms. Read the actual undertaking.
Remember thisURDG 758 is a rulebook for demand guarantees; it is not a SWIFT message and it does not apply merely because MT760 is used.
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