How Many Times A Guarantor Can Extend The Demand Guarantee

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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anilib9050
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How Many Times A Guarantor Can Extend The Demand Guarantee

Post by anilib9050 »

As a banker I would like to know, how many times a guarantor can extend the demand guarantee on request from beneficiary?
Is there any limitation for extension?
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picant
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I DONT THINK .....

Post by picant »

Hi Pal,

it depends on the ruling, URDG, ISP98 etc. However I think no hamper in extending, otherwise you will pay it.
Other comments appreciated
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L59099
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Re: How Many Times A Guarantor Can Extend The Demand Guarantee

Post by L59099 »

depending on clause stated in the guarantee as wells, some clients ask for the guarantor (the issuing bank) an auto-extended bond, eg, the bond can be renewed automatically 01 year
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