Common use of Principle of Subrogation Clause in Contracts

Principle of Subrogation. (1) If a Contracting Party or its designated agency makes a payment in respect of an investment in the territory of the other contracting party, the latter Contracting Party shall recognize the first assignment to the contracting party or its designated agency by law or pursuant to a contract of all rights and claims of indemnified the investor and the right of the former Contracting Party or agency dé-signé by it to exercise such rights and enforce such claims by virtue of subrogation to the same extent as the investor. (2) Any payment made by one contracting party (or any representative, any institu-tion, any statutory body or any legal person designated by it) to its investors shall not affect the right of such investors to make claims against the other contracting party, in accordance with the provisions of article 8, provided that the exercise of such a right would not duplicate or not contradicted the exercise of a right by virtue of subrogation as provided for in paragraph (1) above.