Document ID: chunk:federal_register_of_legislation:C2020C00320:schedule:1:p7
Version: federal_register_of_legislation:C2020C00320
Segment Type: schedule
Provision Reference: sch 1 (pt 7/31)
Character Range: 19694–22417

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 the purposes of Section (a) above the nationality of a member shall prevail over the nationality of a non‑member, and the nationality of the host country shall prevail over the nationality of any other member.

 (c)  Upon the joint application of the investor and the host country, the Board, by special majority, may extend eligibility to a natural person who is a national of the host country or a juridical person which is incorporated in the host country or the majority of whose capital is owned by its nationals, provided that the assets invested are transferred from outside the host country.

Article 14.   Eligible Host Countries

 Investments shall be guaranteed under this Chapter only if they are to be made in the territory of a developing member country.

Article 15.   Host Country Approval

 The Agency shall not conclude any contract of guarantee before the host government has approved the issuance of the guarantee by the Agency against the risks designated for cover.

Article 16.   Terms and Conditions

 The terms and conditions of each contract of guarantee shall be determined by the Agency subject to such rules and regulations as the Board shall issue, provided that the Agency shall not cover the total loss of the guaranteed investment. Contracts of guarantee shall be approved by the President under the direction of the Board.

Article 17.   Payment of Claims

 The President under the direction of the Board shall decide on the payment of claims to a holder of a guarantee in accordance with the contract of guarantee and such policies as the Board may adopt. Contracts of guarantee shall require holders of guarantees to seek, before a payment is made by the Agency, such administrative remedies as may be appropriate under the circumstances, provided that they are readily available to them under the laws of the host country. Such contracts may require the lapse of certain reasonable periods between the occurrence of events giving rise to claims and payments of claims.

Article 18.   Subrogation

 (a)  Upon paying or agreeing to pay compensation to a holder of a guarantee, the Agency shall be subrogated to such rights or claims related to the guaranteed investment as the holder of a guarantee may have had against the host country and other obligors. The contract of guarantee shall provide the terms and conditions of such subrogation.

 (b)  The rights of the Agency pursuant to Section (a) above shall be recognized by all members.

 (c)  Amounts in