Common use of Nationalization or Expropriation Clause in Contracts

Nationalization or Expropriation. 1. Investments shall not be "de jure" or "de facto", directly or indirectly, nationalized, expropriated, requisitioned or subjected to any measures having totally or partly an equivalent effect in the territory of the other Contracting Party, except for public purposes or national interest, against immediate and just compensation and provided that these measures are taken on a non-discriminatory basis and in conformity with all legal provisions and procedures, including specific commitments. 2. Fair compensation shall be established on the basis of real market value prevalent prior to the time upon which the decision to nationalize or expropriate is taken or made public. 3. Compensation shall be deemed as immediate if it takes place without undue delay. 4. In case of an undue delay, there will be a re-evaluation at the request ofthe investor, in order to compensate for this situation. 5. An investor ofeither Party that asserts that all or part of his investment has been expropriated shall have the right for a prompt hearing by the competent court or administrative authority of the Party where the investment was established, in order to determine whether any such expropriation has occurred, and if so, whether such expropriation, and any compensation thereofare conforming to the law and regulation and to the fundamentals of this Agreement, and to decide all other matters relating thereto. 6. In the absence of an agreement between the investor and the competent authority, the amount of compensation shall be established in accordance with the procedures for dispute settlement pursuant to Article 8 of this Agreement. Compensation shall be freely transferable pursuant to Article 6 of this Agreement. 7. The provisions of Paragraph 1 of this Article shall also apply to investment profits.Paragraph 1 of this Article shall also apply to investment profits.