Task Force on Guarantees
The Banking Commission’s Guarantees Task Force pools ideas to impact on new policy relating to international guarantees, promotes a wider use of the newly revised Uniform Rules for Demand Guarantees (URDG 758), answers queries from users concerning the rules and monitors international guarantee practice.
The Task Force on Guarantees currently counts 40 members from 24 countries and meets twice a year at Banking Commission biannual meetings. The majority of its work is conducted via email exchange and conference call.
In addition to its above mentioned activities, the task force's current projects include:
- Customs Guarantees (in partnership with the World Customs Organization)
- Preparation of an official ICC survey on the global use/acceptance of URDG 758)
- Collection of local law/local regulations on guarantees
- Collection of international standard practice (best practice) as the basis for a codified Standard International Demand Guarantee Practice (like the ISBP for LCs)
- Monitoring the SWIFT changes for the guarantee-related MTs.
A major goal of the task force is to support global economy by harmonizing international guarantee practice. No major cross border transaction can be done without issuing guarantees, bearing significant risk for all parties involved. By way of URDG 758, the official opinions etc we level the playing field among the different interests of the parties to a guarantee.
More about Uniform Rules for Demand Guarantees (URDG 758)
URDG 758, the first revision of the guarantee rules for almost 20 years, was more than an updating of the rules. The rules are the result of an ambitious process to bring into the 21st century rules that are clearer, more precise and more comprehensive.
Breaking new ground
URDG 758 breaks new ground in several respects. They entitle the beneficiary to payment upon presentation of a complying demand without the need to seek the applicant's approval; they express the guarantor’s independent role in exclusively documentary terms; and they allow the supporting statement by the beneficiary indicating that the applicant is in breach to be either in the demand or in a separate signed statement.
In the ICC publication, the new rules are accompanied by a model guarantee and counter-guarantee form and a set of optional clauses at the end of the rules, combining two previously separate ICC publications into a single package.
In June 2011, the Guide to ICC Uniform Rules for Demand Guarantees, authored by Georges Affaki and Sir Roy Goode, was published, containing a comprehensive commentary on the rules.
Only a year after the rules came into effect, the ICC Uniform Rules for Demand Guarantees (URDG 758) was officially endorsed by the UN Commission on International Trade Law (UNCITRAL) at its 44th annual session in Vienna from 27 June-8 July 2011
Comprising 60 member states - all elected by the United Nations General Assembly- UNCITRAL represents the world's principal geographic regions and economic and legal systems.
ICC Uniform Rules for Demand Guarantees (URDG) Publication
The ICC Uniform Rules for Demand Guarantees (URDG) reflect international standard practice in the use of demand guarantees and balance the legitimate interests of all parties. More than an update of the existing rules, the revised URDG 758 are a new set of rules for the 21st century that came into effect on 1 July 2010. URDG 758 contain significant changes practitioners will need to know.
Official Guide to ICC URDG 758
With its clear and comprehensive commentary on the rules and the accompanying model forms, this Guide to ICC URDG 758 provides the key to a successful guarantee practice in all sectors and jurisdictions.
Get your copy of the Guide to ICC URDG 758 at the ICC Store