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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.

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

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,