Expropriation and Compensation (7). 1. A Party shall not expropriate or nationalise a covered investment either directly or through measures equivalent to expropriation or nationalisation (expropriation), except:
(a) for a public purpose (8);
(b) in a non-discriminatory manner;
(c) on payment of prompt, adequate, and effective compensation; and
(d) in accordance with due process of law.
2. The compensation referred to in Paragraph 1(c) shall:
(a) be paid without delay (9);
(b) be equivalent to the fair market value of the expropriated investment at the time when or immediately before the expropriation was publicly announced (10), or when the expropriation occurred, whichever is applicable;
Expropriation and Compensation (7). 1. Neither Party shall nationalize or expropriate a covered investment, either directly or indirectly, through measures tantamount to expropriation or nationalization ("expropriation"), unless it is:
(a) for reasons of public utility (8), in the case of Panama; and
(b) for reasons of public necessity or national security, in the case of Peru, in accordance with due process, in a non-discriminatory manner and through the payment of prompt, adequate and effective compensation.
2. The compensation shall be paid without delay and shall be fully liquidable and freely transferable. Such compensation shall be equivalent to the fair market value of the expropriated investment immediately before the expropriation took place. The expropriation date will not reflect any change in value because the intention to expropriate was known in advance of the expropriation date.
3. If the fair market value is denominated in a freely usable currency, the compensation referred to in paragraph 1 shall not be less than the fair market value on the date of expropriation, plus interest at a commercially reasonable rate for that currency, accrued from the date of expropriation to the date of payment.
4. If the fair market value is denominated in a currency that is not freely usable, the compensation referred to in paragraph 1 - converted into the currency of payment, at the market rate of exchange prevailing on the date of payment - shall not be less than:
(a) the fair market value at the date of expropriation, converted into a freely usable currency at the market exchange rate prevailing on that date, plus;
(b) interest at a commercially reasonable rate for that freely usable currency, accrued from the date of expropriation to the date of payment.
5. The affected investor shall be entitled, under the national law of the Party executing the expropriation, to a review of his case by a judicial or other independent authority of that Party, and to the valuation of his investment in accordance with the principles set forth in this Article.
6. The provisions of this Article shall not apply to the issuance of compulsory licenses granted in connection with intellectual property rights, or to the revocation, limitation or creation of intellectual property rights to the extent that such issuance, revocation, limitation or creation is consistent with Chapter 9 (Intellectual Property).
