Common use of Principle of Subrogation Clause in Contracts

Principle of Subrogation. In the event that a Contracting Party has provided any financial guarantee on non-commercial risks in connection with an investment made by an investor of this contracting party in the territory of the other contracting party, the latter shall accept an application of the principle of subrogation to the first contracting party into the rights of the investor, with regard to compensation for payments due, from the time at which it has made a payment under the guarantee granted. In no case may occur subrogation in property rights, use, enjoyment or any other right derived from the ownership of their investment without prior to obtain relevant authorisations, according to the Law on Foreign Investment in force in the Contracting Party where the investment was made.