Originality of Paper and Electronic Documents (Part 3)

In the first part of my article on this expansive topic (Feb 2022 DCW 24), I endeavored to analyze various aspects of presentations of paper documents, issues of originality of paper documents, and ways of signing paper documents.

In the second part (Jul/Aug 2022 DCW 40), I focused on electronic documents and above all how they are treated by international rules of practice such as UCP, ISP, and URDG with further elaboration given as relates to eUCP and ISDGP. This second article dealt mainly with issues regarding what the electronic document (record) means under the rules, what is an electronic signature, and matters of authentication. These two articles set the scene for further discussion of the topic. In this third part, I dive deeper into electronic guarantees, dealing with both electronic issuance and presentation. The intention is to focus on practical interpretation and use of the rules today and what remaining issues need to be clarified to fully foster use of electronic records in the area of demand guarantees.

The Electronic Guarantee – What Does It Mean?
With increased frequency we hear from various banks and other guarantee providers that they offer electronic guarantees. However, what is meant by “electronic guarantee”? Does it mean that the guarantee is issued in electronic format, i.e. using an electronic document (record)? Or is to mean that such guarantee allows or requires electronic presentation? Or must such guarantee be both issued in electronic format and also allow or require electronic presentation?