Please note, this publication has been revised. The new Uniform Rules for Demand Guarantees, URDG 758, are available here. Implementation date: 1 July 2010.
The ICC Uniform Rules for Demand Guarantees lay out a series of obligations for principals, beneficiaries and guarantors.
In 28 articles, the URDG set out the liabilities and responsibilities of the parties, the nature of a demand, the expiry circumstances and the governing law jurisdiction for the guarantee or counter-guarantee. Each rule is concisely expressed and easy to understand.
The URDG apply to all guarantees, from those payable on simple written demand, to those requiring the presentation of a judgment or arbitral award. They also apply to intermediate forms of guarantee such as those requiring a statement of default by the beneficiary with or without an indication of the nature of the default.
The URDG Rules will secure uniform practice in the requirements for guarantees and will join the other ICC Rules, such as the Uniform Customs and Practice for Documentary Credits, UCP 500, in bringing order and security to international business practice.