How Many Times A Guarantor Can Extend The Demand Guarantee

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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anilib9050
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How Many Times A Guarantor Can Extend The Demand Guarantee

Post by anilib9050 » Sat Aug 29, 2015 12:45 pm

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?

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picant
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I DONT THINK .....

Post by picant » Wed Sep 02, 2015 8:37 pm

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
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Re: How Many Times A Guarantor Can Extend The Demand Guarantee

Post by L59099 » Sun Oct 01, 2017 8:42 am

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

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picant
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Re: How Many Times A Guarantor Can Extend The Demand Guarantee

Post by picant » Thu Mar 24, 2022 9:23 pm

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

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