Common use of Free Transfers Clause in Contracts

Free Transfers. 1. Each Contracting Party shall allow investors of the other Contracting Party to effect free transfers of all payments relating to an investment, including though not exclusively: a. The principal amount and additional sums necessary for establishing, maintaining, increasing and developing the investment; b. Returns as defined in Article I, paragraph 3; c. Payments pursuant to foreign loans; d. Funds yielded from settlement of disputes and compensations, as provided for in Articles IX and X; e. Proceeds from the sale of all or any part of the investment, or from the partial or complete liquidation of the investment, which could include capital gains or increases in the invested capital; f. Salaries and remunerations received by the employees hired overseas in connection with an investment. 2. Transfers shall be made in a freely convertible currency at the rate applicable on the day transfers are made to spot transactions in the currency used. 3. Each Contracting Party shall allow transfers to be made without undue delay and with no other expenses than the usual banking costs. 4. Notwithstanding the provisions of this Article, a Contracting Party may condition or prevent a transfer through the equitable, non-discriminatory and good faith application of its laws relating to: a. Bankruptcy proceedings, company restructuring or insolvency; b. Compliance with judicial, arbitral or confirmed administrative verdicts and awards; c. Compliance with labour or tax obligations. 5. A Contracting Party may adopt or maintain measures not conforming with its obligations under this Article: a. In the event of serious balance-of-payments and external financial difficulties or threat thereof; or b. In cases where, in exceptional circumstances, movements of capital cause or threaten to cause serious difficulties for macroeconomic management, in particular, monetary and exchange rate policies. 6. Measures referred to in paragraph 5 above shall: a. Be consistent with the Articles of the Agreement of the International Monetary Fund so long as the Contracting Party taking the measures is a party to the said Articles; b. Not exceed those necessary to deal with the circumstances set out in paragraph 5 above; c. Be temporary and shall be eliminated as soon as conditions permit; and d. Be promptly notified to the other Contracting Party.