How Many Times A Guarantor Can Extend The Demand Guarantee

[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?

[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
Ciao

[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

[picant]

Hi Pal,

in the Saudi Arabian Monatary Agency wording of bank guarantee t is written:
d)this guarantee shall remain valid and in full force and effect up to the end of the ..day of the month... of the year....provided that it is a condition of this guarantee that, in the event you(THE BENEFICIARY) give the Guarantor on or prior to said expiry date of this guarantee (or any subsequent extension of that expiry date in accordance with this proviso) signed written notification requesting an extension, the Guarantor will:
1). automatically extend this guarantee for such period(not exceeding 365 days) from that expiry date or extension as you may specify in that notification, or
2), pay the amount of the guarantee.

My question: on request of beneficiary the guarantee will be extended all the time or restricted to only a perido of 365 days?

Your comments an replies appreciated.
Ciao

[FanTrade]

As long as you can make use of another "extend or pay" presentation as provided in that clause, theoretically you could do numberless of extensions. However, I really don't understand the word 'automatically' in that context.