URDG 758 explained: the demand guarantee rules to check
By the Vanguard Verify desk · Published 2026-10-26 · Updated 2026-10-26
Short answer: URDG 758 is the International Chamber of Commerce's Uniform Rules for Demand Guarantees. It came into force on 1 July 2010, replaced URDG 458, and has 35 articles. It applies only when the guarantee says it is subject to URDG 758. It sets how a demand must be made, how fast the guarantor must examine it and when the guarantee expires. It does not make a guarantee genuine. That still has to be confirmed with the issuing bank.
Key URDG 758 rules
| Article | Rule (summary) | What it means for you |
|---|---|---|
| Art. 1 | The rules apply when the guarantee expressly states it is subject to them | Look for "subject to URDG 758" in the text |
| Art. 5 | The guarantee is independent of the underlying contract | The guarantor pays against a complying demand, not after investigating the dispute |
| Art. 15 | A demand must be supported by a statement saying in what respect the applicant is in breach, unless the guarantee excludes this | A bare demand is not enough by default |
| Art. 20 | The guarantor has five business days after presentation to examine the demand | Sets the payment timeline |
| Art. 23 | "Extend or pay": a demand can ask for an extension instead of payment, and the guarantor may suspend payment for up to 30 calendar days | A common route to renegotiating expiry |
| Art. 24 | A rejection notice must list every reason, sent by the fifth business day | The guarantor cannot add reasons later |
| Art. 25 | A guarantee with no stated expiry ends three years after issue | Always check the expiry date or expiry event |
| Art. 26 | Force majeure extends the guarantee for 30 calendar days after it ends | Protects presentations blocked by closures |
How to check a guarantee issued under URDG 758
- Confirm it came by authenticated SWIFT. Guarantees are normally issued by MT760 bank to bank. A PDF emailed by a broker is not an issued guarantee. See MT760 meaning.
- Ask your own bank to authenticate it. Your bank can confirm whether the MT760 was received and comes from the issuer it names.
- Read the demand conditions. Check what documents a demand needs, whether the statement of breach is required, and where and how the demand must be presented.
- Check the amount, currency and reductions. Some guarantees reduce automatically as goods ship.
- Check expiry. Confirm the expiry date or event and the place where a demand must arrive before expiry.
- Check the issuing bank. Confirm its BIC, licence and regulator through official sources, not through contact details on the document. See how to verify a bank guarantee.
Red flags
- The guarantee is offered for "lease" or "rent" from a provider that is not the applicant. See leased SBLC.
- You are told "URDG 758" means the instrument is pre-approved or cannot fail. The rules govern procedure, not authenticity.
- A fee is requested before the issuing bank will "release" the guarantee.
- The guarantee contains a clause that it becomes effective only after a condition the beneficiary cannot check.
- Verification contact details appear only on the document itself.
URDG 758 vs ISP98 vs UCP 600
URDG 758 is used for demand guarantees, often in construction, procurement and performance security. ISP98 is used for standby letters of credit. UCP 600 is used for commercial documentary credits. Each sets different examination and expiry rules, so read which one the instrument names. See UCP 600 explained.
This page is general information, not legal or banking advice.
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FAQ
When did URDG 758 come into force?
1 July 2010. It replaced URDG 458.
Does a demand under URDG 758 need a statement of breach?
Yes, by default. Article 15 requires a statement saying in what respect the applicant is in breach, unless the guarantee expressly excludes it.
How long does the guarantor have to examine a demand?
Five business days after presentation (Article 20).
What happens if a URDG 758 guarantee has no expiry date?
Under Article 25 it terminates three years after the date of issue.
Vanguard Verify is run by Vanguard Trade Capital Goods Wholesalers DWC-LLC, Dubai South, Licence 14282. This answer is general information, not legal or financial advice.