Learn more about URDG 758
Both the ICC Banking Commission and the Commercial Law and Practice Commission have overwhelmingly
approved the Uniform Rules for Demand Guarantees from its current Revision URDG 458 to its new Revision 758 (URDG 758). The new rules will enter into effect on July 1, 2010. Are you ready?
Learn more by clicking the Tab:
"Purchase - A Drafter's Notes to URDG 758".
excited to let you know that BAFT has published a document titled: The Oil and Gas Industry: A Practical Guide to Independent
Undertakings. This educational document reviews common terms specific to the oil and gas industries (Industry)and which
are routinely found in the LCs and Demand Guarantees (collectively Undertakings) which support the Industry’s sales.
I had the privilege to Chair the Global Working Group which dedicated 3 years to the production of this informative,
BAFT has recognized that while the Industry regularly utilizes Undertakings, little has been done
to harmonize or qualify the specific terms and document types endemic to the Industry. Interested in learning more about
such topics as: Escalation and De-escalation pricing, Reduction and/or Due Date clauses, etc.? Want to review documents not
mentioned in the various rule sets (UCP, ISP and URDG) which often govern Undertakings, e.g.: Pipeline Certificates, Book
transfers, Meter Tickets, & LOI’s, etc.? If yes, then you should find this an invaluable educational document.
See how your policies and procedures compare with the this document’s “Best Practices”. Interested to learn
more? BAFT members can download this document by signing on to BAFT’s website: http://www.baft.org/
This site is dedicated to providing technical knowledge, training, education and solutions to
anyone involved in Letters of Credit and/or Demand Guarantee transactions. It is maintained by a trade professional with extensive
trade finance knowledge. By unraveling the puzzles and misconceptions associated
with these instruments, trade can improve and expand for the benefit of everyone globally.
Note: Although I refer
to applicable laws and legal concepts and/or actual legal cases, I am not a legal professional. The information
in this site should not be construed as legal advice. Persons seeking legal advice should consult their
own legal professional.
In Shakespeare’s, The Merchant
of Venice, Antonio provides Bassanio with a Letter of Credit. This piece was
purportedly written in the late 1500’s but Letters of Credit were by then already an established means of facilitating
business. They continue to play an important role in the global economy and the U.S. marketplace. The majority of Letters of Credit (“LCs”) and
Demand Guarantees (collectively hereinafter referred to as “instruments”) issued worldwide are “documentary”
and “irrevocable” commitments of the issuer and so this site is dedicated to this type of instrument.
It is possible to induce an issuer to establish a “revocable” instrument but globally this is very uncommon.
Additionally, while this site does provide an overview for non-demand types of Guarantees, these types of instruments
are generally subject to local customs and laws and, as such, this site does not provide an in depth analysis of these contracts.
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Send your questions, comments
or ideas to email@example.com. For issues that are of particular interest to the trade community, I may publish
(with your permission) your questions along with my responses on this web site.