Expropriation. 1. The investments of investors of a Contracting Party shall not, directly or indirectly, be nationalized, expropriated or subject, in any other way, to other measures having an effect equivalent to the nationalization or expropriation (hereinafter referred to as "expropriation") in the territory of the other Contracting Party, unless the following conditions are complied with: a) The measures are taken for a public utility need or in the social interest and under due process of law; b) The measures are distinct and not discriminatory; and c) The measures are accompanied by provisions for the payment of prompt, adequate and effective compensation, which shall be transferable without delay in a freely convertible currency. 2. Such compensation shall correspond to the fair market value of the expropriated investment immediately before the expropriation occurs or before the impending expropriation becomes known in such a way as to affect the value of the investment, whichever takes place first. It shall include interest at the applicable commercial rate established on a market basis from the date of expropriation until payment date and it shall be done without undue delay and shall be effectively realizable and freely convertible and transferable.
Appears in 69 contracts
Samples: Investment Agreement, Investment Agreement, Investment Agreement
