O'Brien updated participants with the obligations of the bank under the new URDG
758 and its various articles that set out the liabilities and responsibilities of the parties at each key stage of the lifecycle of the guarantee.
Destined to become the international standard for all demand guarantee practices, the extensively updated URDG 758 rules apply to billions of dollars of guarantees securing monetary and performance obligations in a wide array of international and domestic contracts, including construction, capital markets, commercial lending, corporate restructuring and structured finance.
The revision of the URDG spanned two-and-a-half years and was a co-operative effort by the ICC Commission on Banking Technique and Practice and Commission on Commercial Law and Practice, which are made up of representatives from banks, companies and law firms worldwide.
The URDG can adequately provide an operational framework for harmonising international practices by setting out the liabilities and responsibilities of trading partners," said ICC Bahrain chairman Ebrahim Zainal.
The unanimous vote for the new URDG
758 by a widely divergent group of countries across continents is a testament to the success of acceptance of ICC rules representing a most powerful effort to harmonise the international demand guarantee practice on a global level,' said Taneja who is also BBK head of trade finance in transactional banking.
Summary: A major ICC Banking Commission Conference entitled '2009 -- Crossroads for Trade and Technology', opens in Dubai today (Tuesday) with a challenging agenda of finalising the latest revision of the international rules for demand guarantees known as the URDG.
The delegates, who will be finalising the revision of URDG, will come out with a series of recommendations on reducing the effects of the current financial situation," he said adding, "Dubai has always been on the forefront of serving the business community worldwide and the outcome of this major event will go a