Category 7: Documentary credits, guarantees and standby letters of credit
MT765 Guarantee / Standby Letter of Credit Demand
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The MT765 is the demand for payment under a demand guarantee, standby letter of credit or other undertaking. The beneficiary, when it is a bank, or a bank acting for the beneficiary sends it to the issuer, directly or through another bank, and it can ask to extend the expiry date as an alternative to payment. It was introduced in the November 2021 guarantee release.
- Message type
- MT765
- Category
- 7
- Status
- In the current standard
- ISO 20022
- No direct equivalent
What MT765 is used for
Before November 2021 there was no dedicated demand message, so banks sent claims as free text. The MT765 gives the claim its own structured message: the undertaking number, the issuer, the amount demanded and whether the demand is complete or supporting documents follow separately. The demand wording itself is still narrative text inside the message, because guarantees usually require a statement in specific words.
An extend or pay demand asks the issuer either to extend the guarantee or to pay. The issuer answers a refused demand with an MT786. When it pays, the money moves in a separate bank-to-bank payment.
- Sent by
- The beneficiary (if a bank) or a bank presenting on its behalf
- Sent to
- The issuer of the guarantee or standby
Fields
This is a catalogue entry: the field-by-field structure is not shown here because we publish structures only where we have checked them against public sources. Paste an MT765 into the parser to see each field decoded with its tag, name and value.
ISO 20022
No ISO 20022 equivalent in use on Swift for this flow. ISO 20022 defines tsrv.013 Undertaking Demand and tsrv.014 Extend Or Pay Request for the same events, but guarantee demands between banks are still sent as MT765.
MT765 questions
- Before MT765, how were guarantee claims sent?
- There was no dedicated message, so claims went as free text or on paper. The MT765 added a structured demand in November 2021.
- What is an extend or pay demand?
- A demand that asks the issuer to pay unless the guarantee is extended. The MT765 can carry the requested new expiry date together with the demand.
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