URDG 758 is the International Chamber of Commerce’s Uniform Rules for Demand Guarantees, a voluntary set of international rules that governs how banks issue and pay independent demand guarantees used in cross-border trade. The ICC Executive Board adopted the rules on December 3, 2009, and they have applied to guarantees that incorporate them since July 1, 2010, replacing the earlier URDG 458.1International Chamber of Commerce. New Rules for Demand Guarantees Effective 1 July They give banks, applicants, and beneficiaries a shared framework for what a guarantee must say, how a demand is presented, how the guarantor examines it, and when payment is due.
When the Rules Apply
URDG 758 is opt-in. Under Article 1, the guarantee document itself must expressly state that it is subject to the rules. A guarantee that says nothing about governing rules, or that points to a different framework, is not covered. That single line in the drafting stage decides whether the rulebook governs the transaction.
The framework’s central idea is independence. A demand guarantee is a separate obligation from the underlying commercial contract between the applicant and the beneficiary. If the applicant argues it performed the contract, the guarantor does not investigate. The guarantor examines documents against the terms of the guarantee, nothing more. The rules make this explicit: guarantors deal with documents, not with the goods, services, or performance those documents might reference.2International Chamber of Commerce. ICC Demand Guarantee Rules URDG 758 Celebrate Two Years of Rising Popularity That separation keeps payment disputes focused on documentary compliance rather than contract performance.
Cross-border deals often use a counter-guarantee, in which the applicant’s bank instructs a local bank in the beneficiary’s country to issue the guarantee and stands behind it. URDG 758 treats each counter-guarantee as an independent obligation subject to the same documentary-compliance principles.3International Chamber of Commerce. ICC Uniform Rules for Demand Guarantees URDG 758
What a Demand Guarantee Must Contain
Under Article 8, a guarantee needs to identify the applicant and the beneficiary, describe the underlying transaction, and state the maximum amount available and the currency of payment.4International Chamber of Commerce. Uniform Rules for Demand Guarantees URDG 758 It also needs a definite endpoint, either a fixed expiry date or a triggering event. Open-ended commitments create unpredictable exposure, and the rules push parties toward certainty.
The guarantee should spell out which supporting documents must accompany a demand. These might be inspection reports, third-party certificates, or anything else specific to the deal. Vague or overloaded document requirements cause problems later, so applicants and banks generally work through the wording together before issuance.
One requirement applies by default. Under Article 15, every demand must include a statement from the beneficiary indicating how the applicant breached its obligations under the underlying relationship. The statement can sit inside the demand or in a separate signed document. A guarantee can waive this requirement, but if it does not, the beneficiary has to provide it.3International Chamber of Commerce. ICC Uniform Rules for Demand Guarantees URDG 758
Making a Demand for Payment
Article 14 is strict about presentation. The demand must be delivered to the place where the guarantee was issued, unless the guarantee names a different location, and it must arrive on or before the expiry date. Missing the deadline ends the right to claim, regardless of the merits.3International Chamber of Commerce. ICC Uniform Rules for Demand Guarantees URDG 758
Paper presentations are the default. Electronic presentations are available only when the guarantee permits them, and the guarantee should identify the format, delivery system, and electronic address. If it allows electronic submission without those details, the beneficiary may use any electronic form that permits authentication, or fall back to paper. An electronic document that cannot be authenticated is treated as if never presented.
Every presentation must identify the guarantee, typically by the guarantor’s reference number. If it does not, the guarantor’s examination clock does not start until the guarantee is identified. The demand and any supporting statement cannot be dated earlier than the beneficiary’s first entitlement to present, and no document can be dated later than the presentation itself.
A beneficiary does not have to claim the full amount at once. Article 17 permits partial demands and multiple demands under the same guarantee, unless the guarantee restricts this with wording such as “multiple demands prohibited.”3International Chamber of Commerce. ICC Uniform Rules for Demand Guarantees URDG 758 A demand becomes non-complying if it exceeds the amount available or if supporting documents show total amounts below the demanded figure. Supporting documents showing higher amounts than the demand cause no compliance problem. Under Article 18, submitting a non-complying demand or withdrawing a demand does not stop the beneficiary from making another timely demand before expiry.
How the Guarantor Examines and Pays
Article 19 tells the guarantor to examine a demand on its face, using only the documents presented. Data across documents must not conflict, though it need not be identical. The guarantor does not investigate facts, verify calculations, or look past the paperwork.3International Chamber of Commerce. ICC Uniform Rules for Demand Guarantees URDG 758 Where the guarantee requires a document without specifying who should issue or sign it or what data it should contain, the guarantor accepts anything that appears to serve the function intended. Extraneous documents are disregarded and may be returned.
The guarantor has a maximum of five business days after the day of presentation to decide whether to pay or reject. A rejection must go out without delay in a single notice that lists every discrepancy found, so the beneficiary has a chance to fix problems if time remains before expiry. When the demand complies, the guarantor pays. There is no discretion. The guarantor must also inform the applicant that a demand was made and whether payment occurred.
Amendments and Transfers After Issuance
A guarantee’s terms are not permanently locked once issued. Article 11 allows amendments, but the beneficiary must agree. The guarantor is bound the moment it issues an amendment; the beneficiary can reject it at any time until it either explicitly accepts or makes a demand that complies only with the amended terms. Silence is not acceptance.3International Chamber of Commerce. ICC Uniform Rules for Demand Guarantees URDG 758 Partial acceptance is not allowed, and any clause claiming an amendment takes effect automatically unless rejected within some timeframe is ignored.
Transfers are tightly controlled. A guarantee can be transferred only if it is expressly marked “transferable,” and even then the guarantor is not required to carry out the transfer except to the extent it agrees to do so after issuance. Counter-guarantees are never transferable.3International Chamber of Commerce. ICC Uniform Rules for Demand Guarantees URDG 758 A transfer moves the guarantee from the existing beneficiary to a new one for the full amount available at the time, carrying with it all previously agreed amendments. The transferor must give the guarantor a signed statement confirming the transferee has acquired its rights and obligations under the underlying commercial relationship. Unless the parties agree otherwise, the transferor pays the transfer costs. After the transfer, the transferee signs demands and supporting statements in its own name.
Extend or Pay
Article 23 handles a common scenario: the beneficiary presents a complying demand but asks the guarantor either to extend the expiry date or to pay. The guarantor may suspend payment for up to 30 calendar days while it seeks instructions from the applicant on granting the extension.3International Chamber of Commerce. ICC Uniform Rules for Demand Guarantees URDG 758 If an extension is granted within that window, the demand is treated as withdrawn. If not, the guarantor must pay without requiring a fresh demand. The guarantor can refuse to grant the extension even when instructed to, but refusal triggers immediate payment.
Force Majeure
Article 26 protects beneficiaries when events beyond anyone’s control block a timely presentation or payment. If a guarantee would otherwise expire during a force majeure period, it is automatically extended by 30 calendar days from the date it would have expired. The guarantor must notify the instructing party or counter-guarantor of the event and the extension as soon as practicable.3International Chamber of Commerce. ICC Uniform Rules for Demand Guarantees URDG 758 For a counter-guarantee affected by the same kind of event, the 30-day extension runs from the date the counter-guarantor tells the guarantor that the force majeure has ended.
Governing Law and Jurisdiction
URDG 758 does not impose a single legal system on every guarantee. Article 34 sets a default: unless the guarantee states otherwise, the governing law is the law of the location of the guarantor’s issuing branch or office. The same logic applies to a counter-guarantee, keyed to the counter-guarantor’s issuing location.3International Chamber of Commerce. ICC Uniform Rules for Demand Guarantees URDG 758
Article 35 treats jurisdiction differently. It provides no default forum. The parties are expected to designate a court or arbitration body in the guarantee text. If they do not, the rules offer no fallback, which can produce expensive fights over where a dispute belongs. Naming both the governing law and the dispute resolution forum in the guarantee itself removes one of the most common sources of delay when a disagreement reaches litigation.