Common use of Principle of Subrogation Clause in Contracts

Principle of Subrogation. If a Contracting Party or its designated agency makes a payment under a contract of guarantee or insurance against non- commercial risks given in respect of an investment of any of its investors in the territory of the other Contracting Party, the latter Contracting Party shall recognize the subrogation of any right or title in respect of the first such investor of contracting party or its designated agency to exercise subrogation by virtue of any such right or title to the same extent as its previous holder. This subrogation will make it possible for the first Contracting Party or the agency designated by it to be the direct beneficiary of any compensation or indemnity payments to which the initial investor may be entitled.

Principle of Subrogation. If a Contracting Party or its designated agency makes by a payment under a contract of guarantee or insurance against non- commercial risks given in respect of an investment of any of its investors in the territory of the other Contracting Partycontracting party, the latter Contracting Party shall recognize the subrogation of any right or title in respect of the first such investor of contracting party or its designated agency and the right of the former Contracting Party or its designated agency to exercise subrogation by virtue of any such right or title to the same extent as its previous holder. This the subrogation will make it possible for ensure that the first Contracting Party or the its designated agency designated by it to be the are direct beneficiary beneficiaries of any payments of compensation or indemnity payments to which the investor might be initial investor may be entitledcreditor.