A Practice Note covering demand guarantees and counter-guarantees (sometimes referred to as on demand guarantees or on demand bonds), that are frequently used to support payment and performance obligations in trade finance transactions, particularly in international trade. This Note examines the structure of transactions involving demand guarantees and counter-guarantees and the relationship between these instruments and the sale transactions in which they are used. It also examines the elements of typical demand guarantees and counter-guarantees and the Uniform Rules for Demand Guarantees, the practice rules that often apply to them.