Amendment to Guarantee
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Westley
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- Joined: Tue Feb 25, 2014 6:22 am
- First Name: Westley
- Last Name: Lobo
- Organization: Royal Bank of Canada
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- Location: Canada
Amendment to Guarantee
An amendment to extend the guarantee and decrease the amount was issued, subject to beneficiary's consent. Does the beneficiary have to accept or reject the amendment prior to the present expiry date or does the beneficiary have the right to accept or reject until the extended expiry date as per the amendment.
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WanDan
- Posts: 68
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- First Name: Wan
- Last Name: Dan
- Organization: Bank
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Amendment
Hi,
The Guarantor is bound to the amendment from the time it leaves its control (URDG). So, at least when the URDG are concerned, the beneficiary may accept or reject until the extended expiry date. This is of course a question of the underlying rules and the applicable law.
Cheers,
Dan
The Guarantor is bound to the amendment from the time it leaves its control (URDG). So, at least when the URDG are concerned, the beneficiary may accept or reject until the extended expiry date. This is of course a question of the underlying rules and the applicable law.
Cheers,
Dan
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Westley
- Posts: 23
- Joined: Tue Feb 25, 2014 6:22 am
- First Name: Westley
- Last Name: Lobo
- Organization: Royal Bank of Canada
- Filter: Two Plus Two =: 4
- Location: Canada
amendment to guarantee
Thank you Dan.
All three rules, UCP 600, URDG 758 and the ISP98 agree that the issuer is bound from the time the instrument leaves its control. Hence I support your views. Not all financial institutions follow this principal and hence I want to check if there there is any reason and backing for doing the same (without saying it needs to be backed by the applicable rules and standard practices).
Regards,
All three rules, UCP 600, URDG 758 and the ISP98 agree that the issuer is bound from the time the instrument leaves its control. Hence I support your views. Not all financial institutions follow this principal and hence I want to check if there there is any reason and backing for doing the same (without saying it needs to be backed by the applicable rules and standard practices).
Regards,