Common use of Assignment of Clause in Contracts

Assignment of. rights (1) If a Contracting State, its designated agency or a company or enterprise incorporated in a Contracting State (the "Indemnifying Party") makes payment to any of its investors under an indemnity or a guarantee it has assumed in respect of an investment or returns in the territory of the other Contracting State (the "Host State"), or otherwise become subrogated to any of the rights and claims of such investment as a result of the complete or partial default of the investor, the Host State shall recognize: (a) the assignment to the Indemnifying Party by law or by legal transaction of all the rights and claims resulting from such an investment; and (b) that the Indemnifying Party is entitled to exercise such rights and enforce such claims by virtue of subrogation, to the same extent as its predecessor in title or the original investor. (2) The Indemnifying Party shall be entitled in all circumstances to: a) the same treatment in respect of the rights and claims acquired by it by virtue of the assignment referred to in paragraph (1) above, and b) any payments received in pursuance of those rights and claims, as the original investor was entitled to receive by virtue of this Agreement in respect of the investments concerned and its related returns. (3) Without prejudice to Article 7, any payments received in non-convertible currency by the Indemnifying Party in pursuance of the rights and claims acquired shall be freely available to the Indemnifying Party for the purpose of meeting any expenditure incurred in the territory of the Host State.