Study On The Rights And Obligations Of The Guarantee Bank In URDG758

With the development of global economy, the international trade activities areincreasing, and the types of these trade activities are also increasing. In order to prevent therisks of international trade, the trader will usually require the counterpart to provide a moreconvenient, faster and safer guarantee. Compared with the traditional guarantee whichemphasis more on the protection of the seller’s interest, the new form of guarantee paysattention to the balance of the interest of each corporation to win a bigger market.Independent guarantee contract, or independent guarantee, also being called DemandGuarantee, is not attached to the underlying transaction but pay only according to thedocuments which demand guarantee has required. There are many internationalconventions about demand guarantee, and this paper has made a study of bank’s rights andobligations in the <Uniform Rules for Demand Guarantees, abbreviation URDG758>which International Chamber of Commerce has implemented in2010.This paper starts with the publishment, background, innovation of URDG758, andintroduces the rules of URDG758briefly. After that, the rights and obligations a bank hasas a guarantor in URDG758are discussed according to direct and indirect demandguarantee. Meanwhile, the paper carries out specific analysis about the problems that theguarantee bank may meet with under the law system of China and provides some advicesor countermeasures. At last, by associating URDG758and current guarantee law system ofChina, some advices for improving guarantee law are provided.