Many guarantee format still referred to URDG 458 , customer banks are afraid to change to URDG 758 to avoid refusal of their guarantees .
1 - Is URDG 458 still in use .
2 – can we get a brief compression between URDG 458 & URDG 758
BRIEFLY COMPEER BETWEEN URDG 458 AND URDG 758
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AsifMahmoodButt
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BRIEFLY COMPEER BETWEEN URDG 458 AND URDG 758
Hi,
.
According to Article 1 (d) URDG 758, where a demand guarantee or counter-guarantee issued after 1 July 2010 states that it is subject to the URDG without stating whether the 1992 version or the 2010 revision is to apply or indicating the publication number, the demand guarantee or counter-guarantee shall be subject to the URDG 2010 revision.
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So, where a demand guarantee states it is subject to URDG 458 whether it is issued after 1 July 2010, then URDG 458 rules shall still apply and are binding all parties thereto.
.
Practice has shown that some customers request their banks to issue guarantees subject to URDG 458 because they do not know that there has been URDG 758. Some agree to change to URDG 758 when explained that URDG 758 is clearer, more precise and more comprehensive than URDG 457, some others do not agree to change because the guarantee form subject to URDG 458 is one of the documents required for tender submission; they do not want to lose the tender just because of such change.
.
URDG 758 became effective 01 July, 2010, As said in its introduction, the new URDG 758 do not merely update URDG 458; they are the result of an ambitious process that seeks to bring a new set of rules for demand guarantees into the 21st century, rules that are clearer, more precise and more comprehensive. Therefore, it is advisable that nowadays guarantees should be issued subject to URDG 758.
.
Kind regards,
N.H.Duc
[edited 11/29/2014 1:58:15 AM]
.
According to Article 1 (d) URDG 758, where a demand guarantee or counter-guarantee issued after 1 July 2010 states that it is subject to the URDG without stating whether the 1992 version or the 2010 revision is to apply or indicating the publication number, the demand guarantee or counter-guarantee shall be subject to the URDG 2010 revision.
.
So, where a demand guarantee states it is subject to URDG 458 whether it is issued after 1 July 2010, then URDG 458 rules shall still apply and are binding all parties thereto.
.
Practice has shown that some customers request their banks to issue guarantees subject to URDG 458 because they do not know that there has been URDG 758. Some agree to change to URDG 758 when explained that URDG 758 is clearer, more precise and more comprehensive than URDG 457, some others do not agree to change because the guarantee form subject to URDG 458 is one of the documents required for tender submission; they do not want to lose the tender just because of such change.
.
URDG 758 became effective 01 July, 2010, As said in its introduction, the new URDG 758 do not merely update URDG 458; they are the result of an ambitious process that seeks to bring a new set of rules for demand guarantees into the 21st century, rules that are clearer, more precise and more comprehensive. Therefore, it is advisable that nowadays guarantees should be issued subject to URDG 758.
.
Kind regards,
N.H.Duc
[edited 11/29/2014 1:58:15 AM]