Upload a draft Demand Guarantee or Counter-Guarantee. We act as an issuing-bank legal officer and run clause-by-clause checks against the Uniform Rules for Demand Guarantees (URDG 758), flagging Evergreen traps, non-documentary conditions, Article 15(a) gaps, advance-payment flaws, unauthorised transfers and sanctions/PEP exposure.
A demand guarantee is only as strong as its wording. A single unauthorised transfer clause, an Evergreen extension without a hard-stop, or a missing Article 15(a) supporting-statement requirement can turn a bank's balance-sheet exposure into a payout it cannot legally refuse. Webtraditor's Bank Guarantee vetting examines the draft against every article of URDG 758, aligns it to ISDGP (ICC Publication 814E) practice, and cross-references standby-letter-of-credit constructs against ISP 98.
Automatic-extension clauses without a maximum termination date or without a defined notice window create indefinite bank exposure. We flag every Evergreen construct, cross-check the notice period against URDG 758 Article 25, and highlight jurisdictions where courts have voided or restricted such clauses.
URDG 758 Article 7 requires guarantee conditions to be documentary. We surface every non-documentary condition ("in the event of default", "upon breach", "if the beneficiary is unsatisfied") and rewrite each one into a URDG-compliant documentary condition tied to a specific statement or certificate.
A URDG demand must be accompanied by a statement identifying in what respect the applicant is in breach. Guarantees that omit this requirement expose the guarantor to an obligation to pay on bare demand — a costly oversight we consistently detect.
URDG guarantees are transferable only where expressly stated and only in accordance with Article 33. We flag ambiguous transferability wording, unauthorised assignments of proceeds, and missing counter-guarantee terms in three-party structures involving an instructing party and a counter-guarantor.
Bid bonds, performance bonds and advance-payment guarantees each need distinct reduction, release and expiry mechanics. We detect missing sliding-scale reductions on advance-payment guarantees, cross-check expiry against project milestones, and verify governing law and jurisdiction clauses.
For standby letters of credit governed by ISP 98, we validate Rule 3 presentation mechanics, Rule 4 examination standards, Rule 6 transfer procedures, and Rule 8 reimbursement obligations — with citations to the exact ISP 98 rule number.
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