Document ID: chunk:federal_register_of_legislation:C2020C00320:schedule:2:p1
Version: federal_register_of_legislation:C2020C00320
Segment Type: schedule
Provision Reference: sch 2 (pt 1/4)
Character Range: 89389–92282

Schedule 2—Resolution adopted by the Council of Governors on 30 July 2010
Note: See the definition of Convention in section 3.

Modernizing MIGA's Mandate: Amendments to MIGA's Convention

WHEREAS, Article 59 of the MIGA Convention Establishing the Multilateral Investment Guarantee Agency ("the MIGA Convention") provides that, "this Convention and its Annexes may be amended by vote of three‑fifths of the Governors exercising four‑fifths of the total voting power"; and

WHEREAS, Article 60 of the MIGA Convention provides that, "Any proposal to amend this Convention, whether emanating from a member or a Governor or a Director, shall be communicated to the Chairman of the Board who shall bring the proposal before the Board. If the proposed amendment is recommended by the Board, it shall be submitted to the Council for approval in accordance with Article 59. When an amendment has been duly approved by the Council, the Agency shall so certify by formal communication addressed to all members. Amendments shall enter into force for all members ninety days after the date of the formal communication unless the Council shall specify a different date."

NOW THEREFORE the Council of Governors hereby resolves that:

1. Article 11 of the MIGA Convention shall henceforth read as follows:

    Article 11. Covered Risks

    (a) Subject to the provisions of Sections (b) and (c) below, the Agency may guarantee eligible investments against a loss resulting from one or more of the following types of risk:
         (i) Currency Transfer
         any introduction attributable to the host government of restrictions on the transfer outside the host country of its currency into a freely usable currency or another currency acceptable to the holder of the guarantee, including a failure of the host government to act within a reasonable period of time on an application by such holder for such transfer;
         (ii) Expropriation and Similar Measures
         any legislative action or administrative action or omission attributable to the host government which has the effect of depriving the holder of a guarantee of his ownership or control of, or a substantial benefit from, his investment, with the exception of non‑discriminatory measures of general application which governments normally take for the purpose of regulating economic activity in their territories;
         (iii) Breach of Contract
         any repudiation or breach by the host government of a contract with the holder of a guarantee, when (a) the holder of a guarantee does not have recourse to a judicial or arbitral forum to determine the claim of repudiation or breach, or (b) a decision by such forum is not rendered within such reasonable period of time as shall be prescribed in the contracts of guarantee pursuant to the Agency's regulations, or (c) such a decision cannot be enforced; and
         (iv)