DOCDEX 373
Demand for payment made under a standby credit subject to ISP98. The demand was refused on the basis that the credit was overdrawn. A revised demand was made for a lower amount which was refused due to the credit having expired. The notice of dishonour was not provided on a timely basis and, as such, given the simple nature of the demand, a refusal sent on the 5th business day is not timely and is unreasonable. As the Respondent did not provide a timely notice of dishonour it is obligated to pay the Claimant for the value available under the standby credit.
DOCDEX 374
An advance payment guarantee required a statement that the Applicant had failed to properly perform its obligations under the Agreement and had refused to return the advance payment made to the Applicant. An extend or pay demand was made under an advance payment guarantee, but refused by the guarantor owing to the statement required by URDG 758 sub-article 15 (a) not specifying why the contract had been violated. It was decided that the statement did comply with the terms of the advance payment guarantee and with URDG 758.