Supporting Statements
GHADAB - Egypt
Posted 28 Apr 15 | Edit | Delete
Article 15 paragraph (a) and (b) stipulating a specific text of supporting statement to be indicated in the demand itself or as separate signed document.
Paragraph (c) emphasized that such required supprting statements can only be excluded by an exclusion term written in the guarantee or the C/G as the case may be.
MY QUESTION IS :
When the text of the counter-guarantee includes a specific wording of the demand to be written by the guarantor in case of demanding payment and said wording states a text of a statement different from the text stipulated in paragraph (b), for example,the C/G says " stating that you have been called upon to pay the same amount by the beneficiary of your guarantee in accordance of its terms" do we have, nevertheless ,stipulate in our demanding swift the same sentence shown under paragraph (b),i.e " we hereby indicate that we have received a complying demand under the guarantee issued by us" in addition to " we have been called upon to pay the same amount by the beneficiary of our guarantee in accordance of its terms" ?
Corrected sorry.
Supporting Statment
Supporting Statment
URDG758 Article 1a states the general rule: "except so far as the demand guarantee or counter-guarantee modifies or excludes them." Article 15c, however, provides a stricter rule: "except to the extent that the guarantee or counter-guarantee expressly excludes this requirement." It goes on to give an example: "The supporting statement under article 15[a] is excluded."
Adding "expressly" and subtracting "modifies or" leaves very little room to argue that an alternatively worded statement in a counter-guarantee issued subject to URDG758 effectively excludes the requirement of 15[a].
So, would the above proposed alternative wording satisfy article 15b's requirement for a statement indicating receipt of a complying demand? Maybe, if “according to its terms” means “complying”. And would the article 15b statement satisfy the counter-guarantee’s required statement? Maybe not, because the stated statement is required as such, not simply to be “indicated”.
Regards, Jim Barnes
Adding "expressly" and subtracting "modifies or" leaves very little room to argue that an alternatively worded statement in a counter-guarantee issued subject to URDG758 effectively excludes the requirement of 15[a].
So, would the above proposed alternative wording satisfy article 15b's requirement for a statement indicating receipt of a complying demand? Maybe, if “according to its terms” means “complying”. And would the article 15b statement satisfy the counter-guarantee’s required statement? Maybe not, because the stated statement is required as such, not simply to be “indicated”.
Regards, Jim Barnes
Supporting Statment
When reading articles 15(a) and 15(b) again,you will find another strict phrase of the stipulation of the supporting statement :-
Article 15(a) states "and in any event".
Article 15(b) states "shall in any event".
Both phrases can be easly interpretted that in the event of any similar supporting statement required by the L/G and/or the C/G,the beneficiary and/or the guarantor MUST state the same supporting statements provided under both sub-articles 15a and 15b IN ADDITION TO the statements stipulated in the L/G and/or the C/G to avoid the risk of rejecting the demand.
Regards, Osama.
Article 15(a) states "and in any event".
Article 15(b) states "shall in any event".
Both phrases can be easly interpretted that in the event of any similar supporting statement required by the L/G and/or the C/G,the beneficiary and/or the guarantor MUST state the same supporting statements provided under both sub-articles 15a and 15b IN ADDITION TO the statements stipulated in the L/G and/or the C/G to avoid the risk of rejecting the demand.
Regards, Osama.