Common use of Expropriation and Compensation (7) Clause in Contracts

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;