URDG 758 Explained
URDG 758 is a set of contractual rules for demand guarantees and counter-guarantees. It does not automatically apply merely because a document is called a “bank guarantee”.
What URDG 758 is
The International Chamber of Commerce published the current URDG 758 revision effective 1 July 2010. Under Article 1, a demand guarantee or counter-guarantee ordinarily comes within the rules when its text expressly indicates that it is subject to URDG, subject to the provisions on linked counter-guarantees and any permitted modifications or exclusions.
What the beneficiary should read
- Parties and identification: confirm the guarantor, applicant and named beneficiary.
- Maximum amount and currency: identify what the undertaking actually covers.
- Expiry: check the expiry date or event, place, and submission channels.
- Demand requirements: read the exact documents and statements required for a complying demand.
- Governing framework: check the URDG incorporation, amendments and applicable law.
Independent does not mean unconditional
An independent demand guarantee is separate from the underlying sale or performance contract, but a claim still needs to meet the terms of the undertaking and the applicable rules. A guarantor may be bound by a valid complying presentation; this educational page cannot decide an actual claim or dispute.
Read the official sources
ICC Digital Library: URDG 758 rules (official) · ICC publication explanation. Official copyrighted ICC rules take precedence over MyGreed's summaries.