Document ID: chunk:federal_register_of_legislation:C2020C00320:schedule:2:p2
Version: federal_register_of_legislation:C2020C00320
Segment Type: schedule
Provision Reference: sch 2 (pt 2/4)
Character Range: 92045–94942

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) In addition, 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.

2. Article 12 of the MIGA Convention shall henceforth read as follows:

    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) Loans other than those mentioned in Section (a) are eligible for coverage (i) if they are made to finance or are otherwise related to a specific investment or project in which some other form of direct investment is present, whether or not guaranteed by the Agency and regardless of when such other investment was made, or (ii) as may be otherwise approved by the Board by special majority.
    (c) The Board, by special majority, may extend eligibility to any  other medium‑ or long‑term form of investment.
    (d) Guarantees shall generally be restricted to investments the implementation of which begins subsequent to the registration of the application for the guarantee by the Agency or receipt by the Agency of other satisfactory evidence of investor intent to obtain guarantees from the Agency. Such investments may include:
         (i) a transfer of foreign exchange made to modernize, expand, or develop an existing investment, in which case both the original investment and the additional investment may be considered eligible for coverage;
         (ii) the use of earnings from existing investments which could otherwise be transferred outside the host country;
         (iii) the acquisition of an existing investment by a new eligible investor;
         (iv) existing investments where an eligible investor is seeking to insure a pool of existing and new investments;
         (v) existing investments owned by an eligible investor where there is an improvement or enhancement of the underlying