index in a bank 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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ANGE
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index in a bank guarantee

Post by ANGE »

If a payement guarantee subject to URGD 758 contains an unit price refering to an index. Is it a non documentary condition??

Please let me have your advice
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picant
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URDG

Post by picant »

Hi Pal,

art 7 stated that it possible to have an indexCiao
Other comments appreciated
ANGE
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Post by ANGE »

hI piCANT

Apparently, an index in guaratee is not a non documentary condition provided the wording of the guarantee contains a request for the guarantor to check the value of the index....
dinesh2476
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index in a bank guarantee -Article 7 URDG

Post by dinesh2476 »

Experts,
Please share example for the above.

Non documentary conditions:

A guarantee should not contain a condition other than a date or the lapse of a period without specifying a document to indicate compliance with that condition. If the guarantee does not specify any such document and the fulfillment of the condition cannot be determined from the guarantor’s own records or from an index specified in the guarantee, then the guarantor will deem such condition as not stated and will disregard it except for the purpose of determining whether data that may appear in a document specified in and presented under the guarantee do not conflict with data in the guarantee

Thanks & Regardds
Dinesh Kumar
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