hello!!
Bank A needs to issue a advance payment guarantee. which rule would you prefer? ISP98 or URDG? the guarantee needs to be like this.
on receipt of demand from the beneficiary, nominated bank will send a SWIFT to the issuing bank and the issuing bank will honor. now the applicant of the advance payment guarantee asked for a demand and a written confirmation from the beneficiary that the drawing event has occurred. but this two papers need not to be examined. i found this confusing. your opinion please
ISP98 vs URDG
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CDCS2009
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- First Name: Nova
- Last Name: Birsk
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picant
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IMHO
Hi Pal,
ISP98 is not advisable in my Country, as partly regulated by US Cities local laws. URDG 458 is a little better but must be worded in order to save both parties that are fighting. In effect, beneficiary's receive this advance, and must guarantee it by an Advance Payment Bond, this bond must state in which case it could be called. A delaration by the applicant is always necessary, as further litigations, outside the banks premises, will occur and settled in a Court, so the party will show proper documents. The fact that an Advance payment bond could be demanded by Swift or other means, does not preclude the fact that original documents must be presented later. I meant the applicant will recover the advance but will be still liable in case of illecit demand.
Other comments appreciated
Hoping to have been clear!!
Ciao
ISP98 is not advisable in my Country, as partly regulated by US Cities local laws. URDG 458 is a little better but must be worded in order to save both parties that are fighting. In effect, beneficiary's receive this advance, and must guarantee it by an Advance Payment Bond, this bond must state in which case it could be called. A delaration by the applicant is always necessary, as further litigations, outside the banks premises, will occur and settled in a Court, so the party will show proper documents. The fact that an Advance payment bond could be demanded by Swift or other means, does not preclude the fact that original documents must be presented later. I meant the applicant will recover the advance but will be still liable in case of illecit demand.
Other comments appreciated
Hoping to have been clear!!
Ciao