Dear Clients,

We are pleased to announce that the new revision of the Uniform Rules for Demand Guarantees (URDG), Publication No.758 of the International Chamber of Commerce (ICC) Paris is taking effect as of July 1st, 2010.

Successor to URDG 458, the extensively updated rules, URDG 758 will help bring financial stability to markets rocked by the global recession by setting out the liabilities and responsibilities of parties at each stage of the guarantee lifecycle. As of 1 July 2010, any reference to URDG in a demand guarantee or counter-guarantee leads to the new URDG 758 applying to the undertaking.

Comprising 35 articles, URDG 758 also comes with embedded model guarantee and counter-guarantee forms and a set of optional clauses in a ready-to-use package.

The changes include innovative treatments of payment contingencies and more precise language for determining whether a presentation made under a guarantee or counter-guarantee, whether paper based or electronic, is a complying presentation. These changes are expected to curb the rate of rejection of demands and increase the certainty of the instrument.

The URDG have gained increasing worldwide acceptance over the years. The revision of the URDG was a cooperative effort by the ICC Commission on Banking Technique and Practice and its Commission on Commercial Law and Practice, which are made up of representatives from banks, companies and law firms worldwide. We are extremely proud to share with you that the revision was chaired by Mr. Georges Affaki, Head of Structured Finance Legal Affairs at BNP Paribas S.A., Paris.

Our experts will be at your disposal to provide you with detailed information on the new rules for demand guarantees (Contact Global Trade Services and Trade Finance).

Sincerely,
BNP Paribas S.A. - Sofia Branch

New Uniform Rules for Demand Garantees Press Release (179 ko)

Letter to Clients (388 ko)