What is the main aim of the ICC s Uniform Rules for Demand Guarantees (publication no. 458)?
These rules aim to ensure a uniform practice in the area of guarantees and to balance the interests of the respective parties. A bank which enters into an abstract payment obligation cannot simply withhold payment at the principal s request if the formal requirements of the claim have otherwise been met. The rules are an attempt to limit the risk of abuse which is intrinsic with a guarantee, by forcing the beneficiary to give a qualified declaration in case of a demand. The guidelines only apply if expressly stipulated in the guarantee agreement, Furthermore, it is possible to opt out specific provisions.
