Document ID: chunk:federal_register_of_legislation:C2020C00320:schedule:1:p6
Version: federal_register_of_legislation:C2020C00320
Segment Type: schedule
Provision Reference: sch 1 (pt 6/31)
Character Range: 17100–19918

66.

 (b)  Upon the joint application of the investor and the host country, the Board, by special majority, may approve the extension of coverage under this Article to specific non‑commercial risks other than those referred to in Section (a) above, but in no case to the risk of devaluation or depreciation of currency.

 (c)  Losses resulting from the following shall not be covered:
 (i) any host government action or omission to which the holder of the guarantee has agreed or for which he has been responsible; and
 (ii) any host government action or omission or any other event occurring before the conclusion of the contract of guarantee.

Article 12.   Eligible Investments

 (a)  Eligible investments shall include equity interests, including medium‑ or long‑term loans made or guaranteed by holders of equity in the enterprise concerned, and such forms of direct investment as may be determined by the Board.

 (b)  The Board, by special majority, may extend eligibility to any other medium‑ or long‑term form of investment, except that loans other than those mentioned in Section (a) above may be eligible only if they are related to a specific investment covered or to be covered by the Agency.

 (c)  Guarantees shall be restricted to investments the implementation of which begins subsequent to the registration of the application for the guarantee by the Agency. Such investments may include:
 (i) any transfer of foreign exchange made to modernize, expand, or develop an existing investment; and
 (ii) the use of earnings from existing investments which could otherwise be transferred outside the host country.

 (d)  In guaranteeing an investment, the Agency shall satisfy itself as to:
 (i) the economic soundness of the investment and its contribution to the development of the host country;
 (ii) compliance of the investment with the host country's laws and regulations;
 (iii) consistency of the investment with the declared development objectives and priorities of the host country; and
 (iv) the investment conditions in the host country, including the availability of fair and equitable treatment and legal protection for the investment.

Article 13.   Eligible Investors

 (a)  Any natural person and any juridical person may be eligible to receive the Agency's guarantee provided that:
 (i) such natural person is a national of a member other than the host country;
 (ii) such juridical person is incorporated and has its principal place of business in a member or the majority of its capital is owned by a member or members or nationals thereof, provided that such member is not the host country in any of the above cases; and
 (iii) such juridical person, whether or not it is privately owned, operates on a commercial basis.

 (b)  In case the investor has more than one nationality, for