Transfer Of A BG By Advising Bank To Another Bank

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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oktaySONGUR
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Transfer Of A BG By Advising Bank To Another Bank

Post by oktaySONGUR »

I received a Bank Guarantee with MT 760 Swift Message as Beneficiary and it is verified and authenticated by my Advising Bank.
I want to transfer subject Bank Guarantee to another Bank based on a financial agrement.
What is the normal practise to send a BG to another Bank, is it possible to send it by MT 760 without any Financial responsibility on their side?
I had different answers and I am confused. Please advise.
Thank you very much in advance for cooperation.
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picant
Posts: 1962
Joined: Wed Aug 20, 2008 1:49 pm

Under which rule....

Post by picant »

Hi Pal,

under which rule is rhe guarantee subjected?
However I think you dont need to domiciliate it.
Let me know
Ciao
oktaySONGUR
Posts: 2
Joined: Fri Apr 05, 2013 6:46 pm
First Name: Oktay
Last Name: SONGUR
Organization: Pakpas Investment Ho
Filter: Two Plus Two =: 4
Location: Kazakistan

SUBJECT RULE OF GUARANTEE

Post by oktaySONGUR »

URDG 758
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picant
Posts: 1962
Joined: Wed Aug 20, 2008 1:49 pm

Not a transfer

Post by picant »

Hi Pal,

I think you just want to "place" the guarantee to the bank giving advance. It is not a transfer nor an assignment.
The guarantee if in your favour and you must undertake to present eventual demand via your bank with that bank.
URDG rule transfer and assignment but with consent of guarantor. Bank guarantee is not a letter of credit, it is working in pathological case.
Other comments appreciated
Ciao
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