Common use of Expropriation and Compensation (4) Clause in Contracts

Expropriation and Compensation (4). 1. A Party shall not expropriate or nationalize a covered investment, either directly or indirectly through measures having an effect equivalent to expropriation or nationalization (“expropriation”), except: (a) for a public purpose; (b) when made in accordance with the legislation of the Party; (c) in a non-discriminatory manner; and (d) when accompanied by compensation, in accordance with paragraph 2. 2. The compensation shall: (a) be paid without delay and in a freely usable currency; (b) be equivalent to the fair market value of the expropriated investment immediately before the expropriation took place; (c) not reflect any change in value occurring because the intended expropriation had become known earlier; (d) be fully realizable and freely transferable; and (e) include interest, at a commercially reasonable rate for that currency, accrued from the date of expropriation until the date of payment. 3. Without prejudice to Section C (Investor-State Dispute Settlement), the investors affected shall have a right, under the legislation of the Party making the expropriation, to prompt review, by a judicial or other independent authority of that 4. This Article does not apply to the issuance of compulsory licenses granted in relation to intellectual property rights in accordance with the TRIPS Agreement, or to the revocation, limitation, or creation of intellectual property rights, to the extent that such issuance, revocation, limitation, or creation is consistent with the TRIPS Agreement.