Common use of Compensation for Expropriation Clause in Contracts

Compensation for Expropriation. (1) Investors of either Contracting Party shall not be deprived of their investments nor subjected to measures having effect equivalent to such deprivation in the area of the other Contracting Party except lawfully, for a public purpose related to the internal needs of that Party, and against compensation. Such compensation shall amount to the real value of the investment immediately before the deprivation or before the impending deprivation became public knowledge whichever is the earlier, shall include interest at a normal commercial rate until the date of payment, shall be made without undue delay, be effectively realizable and be freely convertible. (2) The investor affected shall have a right, under the law of the Contracting Party making the deprivation, to prompt review by a judicial or other competent or independent authority of that Party, of the lawfulness of the expropriation. The investor shall be entitled to have the amount of the compensation reviewed either by the judicial or other competent or independent authorities of the Contracting Party making the deprivation or by an international arbitral tribunal in accordance with Article 9 of this Agreement. (3) Where a Contracting Party expropriates the assets of a company which is incorporated or constituted under the law in force in any part or its area, and in which investors of the other Contracting Party own shares, it shall ensure that the provisions of paragraphs (1) and (2) of this Article are applied to the extent necessary to guarantee compensation referred to in paragraph (1) in respect of their investment to such investors of the other Contracting Party who are the owners of those shares.

Compensation for Expropriation. (1) Investors of either Contracting Party shall not be deprived of their investments nor subjected to measures having effect equivalent to such deprivation in the area of the other Contracting Party except lawfully, for a public purpose related to the internal needs of that Party, and against compensation. Such compensation shall amount to the real value of the investment immediately before the deprivation or before the impending deprivation became public knowledge whichever is the earlier, shall include interest at a normal commercial rate until the date of payment, shall be made without undue delay, be effectively realizable and be freely convertible. (2) The investor affected shall have a right, under the law of the Contracting Party making the deprivation, to prompt review by a judicial or other competent or independent authority of that Party, of the lawfulness of the expropriation. The investor shall be entitled to have the amount of the compensation reviewed either by the judicial or other competent or independent authorities of the Contracting Party making the deprivation or by an international arbitral tribunal in accordance with Article 9 of this Agreement.Article 9 of this Agreement. (3) Where a Contracting Party expropriates the assets of a company which is incorporated or constituted under the law in force in any part or of its area, and in which investors of the other Contracting Party own shares, it shall ensure that the provisions of paragraphs paragraph (1) and (2) of this Article are applied to the extent necessary to guarantee compensation referred in paragraph (1) in respect of their investment to such investors of the other Contracting Party who are the owners of those shares.paragraph (1) and (2) of this Article are applied to the extent necessary to guarantee compensation referred in paragraph paragraph (1) in respect of their investment to such investors of the other Contracting Party who are the owners of those shares.

Compensation for Expropriation. (1) Investors of either Contracting Party shall not be deprived of their investments nor subjected to measures having effect equivalent to such deprivation in the area of the other Contracting Party except lawfully, for a public purpose related to the internal needs of that Party, and against compensation. Such compensation shall amount to the real value of the investment immediately before the deprivation or before the impending deprivation became public knowledge whichever is the earlier, shall include interest at a normal commercial rate until the date of payment, shall be made without undue delay, be effectively realizable and be freely convertible. (2) The investor affected shall have a right, under the law of the Contracting Party making the deprivation, to prompt review by a judicial or other competent or independent authority of that Party, of the lawfulness of the expropriation. The investor shall be entitled to have the amount of the compensation reviewed either by the judicial or other competent or independent authorities of the Contracting Party making the deprivation or by an international arbitral tribunal in accordance with Article 9 of this Agreement.Agreement.‌ (3) Where a Contracting Party expropriates the assets of a company which is incorporated or constituted under the law in force in any part or its area, and in which investors of the other Contracting Party own shares, it shall ensure that the provisions of paragraphs (1) and (2) of this Article are applied to the extent necessary to guarantee compensation referred to in paragraph (1) in respect of their investment to such investors of the other Contracting Party who are the owners of those shares.