The URDG on the operating table The URDG (ICC Uniform Rules for Demand Guarantees) are currently under revision. Follow the revision here.

Below is a "timeline" update on the URDG revision.

We invite comments and views on the content of the various URDG drafts. Please e-mail to: URDG@lcviews.com

Mr. Georges Affaki made an update of the URDG revision on the meeting in the ICC Commission on Banking Technique and practice in Paris 24 October 2008.:

The comments for the 2nd draft must be submitted by the National Committees latest 6 November 2008 – and a new draft (the 3rd) was promised before Christmas.

It was then discussed if a separate meeting should be arranged in order to discuss all the articles – or if ½ day in connection with the next regular meeting (In Dubai March 2009) would suffice.

Futher “5 difficulties” of a political nature that need be solved was pinpointed. Those circles around the following topics:

1. The term “International standard demand guarantee practice”.
2. Information on demand (article 17).
3. Standard examination of documents – especially vis-à-vis the concept of non-documentary conditions.
4. 5 or 3 days to determine if a demand is complying?
5. How should the Force Majeure rule be drafted?

The second comprehensive draft of the URDG was circulated to the national committees for comments by 6 November 2008

During the meeting in the ICC Banking Commission in Athens 15 and 16 April 2008 - an update on the URDG revision were given. Some of the highlights included:

37 sets of comments on the first comprehensive draft had been received.   There will be URDG 758 T-shirts :-)   Many comments circle around the close relationship to the UCP 600 E.g. how to determine consistency between documents - like the UCP 600 or like the ISP 98?*   The guarantee application is as such outside the URDG   It has been discussed whether to use the term "bank" or "party" - i.e. Issuing Bank" or "Issuer".   A number of comments on "International Standard Demand Guarantee Practice"   How to handle non-documentary conditions?   How to handle amendments?   How to change URDG 458 article 20 (written statement)? The principle used in the draft is in line with article 20 - still almost no comments were recieved on this issue. The URDG Drafting Group will work through the comments - and prepare a new comprehensive draft before the next meeting in the ICC Banking Commission (October 2008)

The first comprehensive draft of the URDG was circulated to the national committees for comments by 28 March 2008

(I.e. 12 months after go-ahead from the ICC Banking Commission)

Prior to the ICC meeting in Singapore the ICC Task Force on Demand Guarantees circulated "The business case for the revision of the URDG". The main arguments in favour of a revision were as follows:

• The URDG were drafted in the eighties for a market that has since evolved.
   
• A revision is an opportunity to bring the Opinions into the new revised set, thus levelling the playing field for all URDG users.
   
• Numerous seminars conducted by Task Force members throughout the world have provided a unique compilation of comments, experiences, criticisms and feedback on the rules.
   
• While UCP and URDG were both products of the ICC Banking Commission, the URDG differ from UCP, and to a certain extent from other Commission-endorsed rules such as ISP, both with regard to substance and terminology.

The Business case also included the following statement:

It [the URDG Drafting Group] will seek to produce a first comprehensive draft and submit it to the Commission and the national committees for comments within 18 months after it receives the go-ahead.