Document ID: chunk:federal_register_of_legislation:C2020C00320:schedule:1:p5
Version: federal_register_of_legislation:C2020C00320
Segment Type: schedule
Provision Reference: sch 1 (pt 5/31)
Character Range: 14608–17348

freely usable currency; or
 (ii) the call shall have been made because of a default in payment by a member and thereafter such member shall have made good such default in whole or in part; or
 (iii) the Council, by special majority, determines that the financial position of the Agency permits all or part of such amounts to be returned out of the Agency's revenues.

 (b)  Any refund effected under this Article to a member shall be made in freely usable currency in the proportion of the payments made by that member to the total amount paid pursuant to calls made prior to such refund.

 (c)  The equivalent of amounts refunded under this Article to a member shall become part of the callable capital obligations of the member under Article 7 (ii).

CHAPTER III

Operations

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) War and Civil Disturbance
  any military action or civil disturbance in any territory of the host country to which this Convention shall be applicable as provided in Article 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,