Common use of Nationalization and Expropriation Clause in Contracts

Nationalization and Expropriation. 1. Capital investments of investors of one of the Contracting Parties shall enjoy full protection and security in the territory of the other. 2. Investments of investors of one of the Contracting Parties shall not be directly or indirectly nationalized, expropriated, requisitioned or subjected to measures having similar effects in the territory of the other Contracting Party except for public purposes or reasons of public or national interest, against adequate compensation and provided that such measures are taken on a non-discriminatory basis and in accordance with legal provisions and procedures. 3. The compensation. shall be equivalent to the actual market value of the investment immediately prior to the time when the decisions of nationalization or expropriation were announced or made public. In the event that the market value cannot be rapidly ascertained, the indemnity shall be determined on the basis of a fair valuation of the constituent and distinctive elements of the enterprise, as well as the components and results of the related business activities. The compensation shall include the interest accrued from the date of nationalization or expropriation until the date of payment, calculated at the 6- month LIBOR rate. In the event that no agreement is reached between the Investor and the Obligated Party, the determination of the compensation shall be settled in accordance with the dispute settlement procedures set forth in Article 9 of this Agreement. Once the compensation is determined, it will be promptly paid and its repatriation in convertible currency will be authorized. 4. The provisions of Paragraph 2 of this Article shall also apply to income derived from an investment, as well as, in the event of liquidation, to proceeds derived therefrom. 5. After expropriation, if any property acquired for this purpose has not received all or part of its intended use, the expropriated persons and their successors in title shall be entitled to have it repurchased.