Demand Guarantees & Bank Guarantees
Demand guarantees, counter-guarantees, URDG 758, demands, amendments and financeability.
Demand guarantees are independent undertakings commonly used for performance, advance payments, bids, payment obligations and other commercial risks. “Bank Guarantee” is a broad market label; always read the actual wording and governing rules.
What is a Demand Guarantee?
Understand the independent bank undertaking behind many bank guarantees.
Lesson 1 of 8 →Who is Who in a Guarantee?
Learn the applicant, beneficiary, guarantor, instructing party and counter-guarantor roles.
Lesson 2 of 8 →Common Types of Guarantee
Performance, advance-payment, bid, payment, retention and warranty guarantees.
Lesson 3 of 8 →URDG 758 and Independence
Learn the rules commonly used for demand guarantees and why independence matters.
Lesson 4 of 8 →Demands, Documents and Expiry
Understand what a beneficiary normally needs to present and why timing matters.
Lesson 5 of 8 →Counter-Guarantees and Local Guarantees
Learn why two banks may issue two separate undertakings in an indirect structure.
Lesson 6 of 8 →Amendment, Transfer and Assignment
Separate changes to the undertaking from transfer of rights and assignment of proceeds.
Lesson 7 of 8 →Financeability and Red Flags
Understand what a financier may examine before relying on a guarantee.
Lesson 8 of 8 →