Effective expiry date

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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picant
Posts: 1945
Joined: Wed Aug 20, 2008 1:49 pm

Effective expiry date

Post by picant »

Hi Pals

I would like to know the effective date of expiry for a guarantee issued by Algerian, Tunisian and Moroccan Banks, if issued locally on behalf of foreign bank or accepted directly from abroad ? Moreover if in such Countries are accepted ans when ended guarantee without an expiry date?
Thanks in advance
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mandeep
Posts: 43
Joined: Tue Apr 30, 2013 2:07 pm
First Name: mandeep
Last Name: maharjan
Organization: laxmi bank ltd
Filter: Two Plus Two =: 4
Location: nepal

expiry date

Post by mandeep »

hello,

as i know there should be expiry date in guarantee. if there is no expiry date there may arise confusion that upto which period bank should book exposure of risk. until and unless bank receives release letter of such guarantees bank is totally in risk.
such guarantees which are issued without expiry dates are called open ended guarantees which i think is risky and is not on practice by all banks.

thanks
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