Expiry: under URDG vs local law

With the introduction of Uniform Rules for Documentary Guarantee or URDG 758, the rules for Documentary Guarantee seem to be popular again. It can be imagined from the increasing number of questions that have popped up in recent days. Documentary Guarantee Forum is an effort to develop a platform to discuss these questions.
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Gart
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Expiry: under URDG vs local law

Post by Gart »

Dear colleagues,

What would you consider as expiry date in such a situation: Finnish bank issues a guarantee subject to URDG without expiry date. According to URDG 758 the expiry date would be 3 years after its issuance, while Finnish law provides expiry 10 years after its issuance (URDG provides local law as governing law). Which expiry date is applicable in this case: 3 or 10 yrs.?

Best regards
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picant
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URDG

Post by picant »

Hi Pal,

If the guarantee is under URDG 758, the expiry date will be 3 years.
Sometimes would be necessary to exclude Local Civil Code article to be sure that the
URDG prevision will override local laws.
Advice from Finland Appreciated
Ciao
Gart
Posts: 39
Joined: Sat Feb 21, 2009 6:00 pm
First Name: Gart
Last Name: Gart
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URDG

Post by Gart »

Thank you picant for your answer, but it is still tricky...
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