IATA guarantee text

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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TFLT
Posts: 3
Joined: Wed Oct 24, 2018 11:46 am
First Name: Kiril
Last Name: Sokolov
Organization: Bank
Filter: Two Plus Two =: 4
Location: Lithuania

IATA guarantee text

Post by TFLT »

Hi,

I've faced with one issue regarding guarantee wording. Could someone explain me "step by step" about validity (cannot identify clear validity date):

"This Guarantee is valid from ----- (insert date) and shall continue in effect until withdrawn by us upon three months’ written notice given to IATA by registered mail and recorded delivery (the period extending from commencement of the period of validity to the end of the period of notice is called the “Validity Period”). This Guarantee expires in full and automatically, should IATA’s demand for payment with respect to any Debt of our Customer that comes into existence during the Validity Period as set forth in this Guarantee not be in our possession at our above address on or before - (insert date of Validity Period, plus six (6) months) (the “Expiry Date”), regardless of such date being a banking day or not."

thank you.
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picant
Posts: 1962
Joined: Wed Aug 20, 2008 1:49 pm

Re: IATA guarantee text

Post by picant »

Hi Pal,

the validity will cease three months after your registered mail to IATA, stating that you withdraw your
undertaking(REVOCABILITY).
Date of validity.... + six months (AVAIIABILITY).
Contact Legal dept, for advice.
Comments appreciate
Ciao
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