Legal Relations between the Parties and Demand of Bank Guarantee in the New Instruction of Money and Credit Council

This article reviews the legal relationship between the parties related to guarantee and demand of bank guarantee in Iran’s law. Since there is no detailed regulation on this matter in Iran’s law, this article tries to study the new guidelines of money and credit council in relation to bank guarantees as a part of rules in Iran’s law and with having so many advantages which this commercial document has, we mention the strengths and weaknesses. However, in some cases it leads to undue demands by its owner that it is defects of this document. It is considered very important to understand the legal relationships of the bank guarantee and its claim is inadmissible. It does not flaw the independence of guarantee and its being demand. This study aims to identify the legal relationship between the parties of bank guarantee (applicant, beneficiary and bank) and to review the laws related to demand bank guarantee in the new guideline of money and credit council and the uniform regulations of demand guarantees, comparatively. In this paper, first we examine the legal relations of the parties and propound the guarantee demand based on these guidelines and uniform rules of demand guarantees. Given that Money and Credit Council of Iran considers the purpose of this guideline to make the issue procedures and renewal and payment as a same process and bank guarantees by use of bank’s opinions, this guideline is last version of uniform regulations of URDG758. URDG is considered in this paper to review the achievement of this purpose by money and credit council .