Supporting Statement

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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First Name: Kiara
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Supporting Statement

Post by Kiara » Wed Jun 08, 2016 6:33 pm

Dear all,

Hope you can help..

I have a guarantee with the following wording:

"upon receipt by us of your first demand in writing and your written statement that:

a) the principal is in breach of his obligation(s) under the Contract;
b) the Employer has served notice of the breach on the Principal requiring it to remedy the breach within a reasonable period which period shall be prescribed in the said notice by the Employer, and the Principal has not remedied the breach within the time prescribed by the notice;
c) the Employer has terminated the contract pursuant to Clause 15 of the Contract.

Such demand and statement accompanied by a copy of the notice referred to in paragraph (B) hereof shall be accepted as conclusive evidence...

My question is, is this acceptable under URDG 758 ??

Under article 5 a guarantee should only make reference to the contract for identification purposes with no link.. in my view a guarantee shouldn't require to prove the breach or justify its right to claim payment ..

Thanking you in advance.


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Post by picant » Mon Jun 13, 2016 11:35 pm

Hi Pal,

art 19 URDG states: documents required by the guarantee, those could be in the form of a statement or supporting commercial documents referring to the underlined contract or transaction. Where in some Countries a false declaration may have consequences, in some other Countries copies of invoices or transport documents may absolve the prescription for AML, KYC and CT:
Other comments appreciated

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