Extend or Pay documentary requirements

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.
Post Reply
Rami
Posts: 1
Joined: Wed Oct 26, 2016 12:48 am
First Name: Rami
Last Name: Al-Sabri
Organization: Qatar National Bank
Filter: Two Plus Two =: 4
Location: Yemen

Extend or Pay documentary requirements

Post by Rami »

Under URDG, is the beneficiary obligated to accompany the original LG with his Extend or Pay demand even if the original text didn't require this documentary requirement?

Thanks in advance for valued feedback.
User avatar
picant
Posts: 1942
Joined: Wed Aug 20, 2008 1:49 pm

faculty

Post by picant »

Hi Pal,

as per art 23URDG 758 under a compliant demand the presenter may ask for an extend or pay request. This is an allowance, due to external agreement between beneficiary and principal, so somebody may decide if agree or not. I think that such possibility may be presented together with compliant demand or later, before the allowed period for the guarantor to effect payment.
Other comments appreciated
Ciao
binhls
Posts: 2
Joined: Mon Dec 03, 2018 10:22 am
First Name: Luong
Last Name: Sonbinh
Organization: Bank
Filter: Two Plus Two =: 4
Location: Vietnam

Re: Extend or Pay documentary requirements

Post by binhls »

Hi Rami,

Article 23 URDG dose not require the Ben presents a extend or pay demand accompannied by the original guarantee except for the requirement of the Guarantee text.

Hope you are well.
Post Reply