Common use of TRANSFER RESTRICTION Covered Risk Clause in Contracts

TRANSFER RESTRICTION Covered Risk. 3.1 The guarantee against Transfer Restriction shall cover a Loss due to any action or inaction by the Host Government, or pursuant to such action or inaction by the Host Government by entities authorized under the laws of the Host Country to engage in foreign exchange transactions, which prevents, directly or indirectly, both the Guarantee Holder and the Project Enterprise from legally: