GlossaryEN1 min readUpdated: Jun 24, 2026

ICC Uniform Rules for Demand Guarantees

Banks and financial institutions issuing demand guarantees in cross-border trade rely on URDG 758—the ICC Uniform Rules for Demand Guarantees, published by the International Chamber of Commerce.

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Last updated: 24 June 2026Published: 19 June 2025

Source: https://iccwbo.org/business-solutions/banking-finance/demand-guarantees-standby-letters-of-credit/

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Definition & Explanation

Banks and financial institutions issuing demand guarantees in cross-border trade rely on URDG 758—the ICC Uniform Rules for Demand Guarantees, published by the International Chamber of Commerce. A demand guarantee obliges the guarantor to pay solely on the beneficiary's written demand, with no right to raise defences based on the underlying contract. URDG 758 governs issuance, amendment, transfer, and expiry of these instruments, providing a consistent legal framework across jurisdictions. In trade finance and freight practice, URDG 758 instruments appear as customs guarantees, advance payment guarantees, performance bonds, and warranty guarantees—most commonly in project finance and complex supply chain transactions. The key distinction from letters of credit: a compliant document set triggers payment under an LC, whereas a demand guarantee requires no documentary evidence of default, making it a powerful but exposure-heavy instrument for the account party.

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ICC Uniform Rules for Demand Guarantees

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