Document ID: chunk:federal_register_of_legislation:C2020C00320:schedule:1:p2
Version: federal_register_of_legislation:C2020C00320
Segment Type: schedule
Provision Reference: sch 1 (pt 2/31)
Character Range: 6727–9919

Election of Directors

CONVENTION ESTABLISHING THE MULTILATERAL
INVESTMENT GUARANTEE AGENCY

PREAMBLE

The Contracting States

 Considering the need to strengthen international cooperation for economic development and to foster the contribution to such development of foreign investment in general and private foreign investment in particular;

 Recognising that the flow of foreign investment to developing countries would be facilitated and further encouraged by alleviating concerns related to non‑commercial risks;

 Desiring to enhance the flow to developing countries of capital and technology for productive purposes under conditions consistent with their development needs, policies and objectives, on the basis of fair and stable standards for the treatment of foreign investment;

 Convinced that the Multilateral Investment Guarantee Agency can play an important role in the encouragement of foreign investment complementing national and regional investment guarantee programs and private insurers of non‑commercial risk; and

 Realizing that such Agency should, to the extent possible, meet its obligations without resort to its callable capital and that such an objective would be served by continued improvement in investment conditions,

 Have Agreed as follows:

CHAPTER I

Establishment, Status, Purposes and Definitions

Article 1.   Establishment and Status of the Agency

 (a)  There is hereby established the Multilateral Investment Guarantee Agency (hereinafter called the Agency).

 (b)  The Agency shall possess full juridical personality and, in particular, the capacity to:
 (i) contract;
 (ii) acquire and dispose of movable and immovable property; and
 (iii) institute legal proceedings.

Article 2.   Objective and Purposes

 The objective of the Agency shall be to encourage the flow of investments for productive purposes among member countries, and in particular to developing member countries, thus supplementing the activities of the International Bank for Reconstruction and Development (hereinafter referred to as the Bank), the International Finance Corporation and other international development finance institutions.

 To serve its objective, the Agency shall:

 (a)  issue guarantees, including coinsurance and reinsurance, against non‑commercial risks in respect of investments in a member country which flow from other member countries;

 (b)  carry out appropriate complementary activities to promote the flow of investments to and among developing member countries; and

 (c)  exercise such other incidental powers as shall be necessary or desirable in the furtherance of its objective.

 The Agency shall be guided in all its decisions by the provisions of this Article.

Article 3.   Definitions

 For the purposes of this Convention:

 (a)  "Member" means a State with respect to which this Convention has entered into force in accordance with Article 61.

 (b)  "Host country" or "host government" means a member, its government, or any public authority of a member in whose territories, as defined in Article 66, an investment which has been guaranteed or reinsured, or is considered for guarantee or reinsurance, by the Agency is to be