(Journal of Commerce Online – Peter T. Leach)
Revised rules to promote uniform practices in trade finance
The International Chamber of Commerce on Thursday unveiled an extensively revised version of the Uniform Rules for Demand Guarantees that it said will be instrumental in adopting uniform practices in trade finance. The revised rules, which were first adopted by ICC in 1992, reflect international practice in the use of demand guarantees and provide safeguards against abuse in the calling of such guarantees.
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. Read more here.