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ARTICLES

LEGAL RESOURSES

Exchange rate:

$ 18.07

    • Article 1109: Transfers

    1. Each Party shall permit all transfers relating to an investment of an investor of another Party in the territory of the Party to be made freely and without delay. Such transfers include:

  • Profits, dividends, interest, capital gains, royalty payments, management fees, technical assistance and other fees, returns in kind and other amounts derived from the investment;

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  • Proceeds from the sale of all or any part of the investment or from the partial or complete liquidation of the investment;

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  • Payments made under a contract entered into by the investor, or its investment, including payments made pursuant to a loan agreement;

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  • Payments made pursuant to Article 1110 (TLCAN: Art. 1110); and

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  • Payments arising under Section B.

    • 2. Each Party shall permit transfers to be made in a freely usable currency at the market rate of exchange prevailing on the date of transfer with respect to spot transactions in the currency to be transferred.

    3. No Party may require its investors to transfer, or penalize its investors that fail to transfer, the income, earnings, profits or other amounts derived from, or attributable to, investments in the territory of another Party.

    4. Notwithstanding paragraphs 1 and 2, a Party may prevent a transfer through the equitable, non-discriminatory and good faith application of its laws relating to:

  • Bankruptcy, insolvency or the protection of the rights of creditors;

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  • Issuing, trading or dealing in securities;

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  • Criminal or penal offenses;

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  • Reports of transfers of currency or other monetary instruments; or

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  • Ensuring the satisfaction of judgments in adjudicatory proceedings.

    • 5. Paragraph 3 shall not be construed to prevent a Party from imposing any measure through the equitable, non-discriminatory and good faith application of its laws relating to the matters set out in subparagraphs (a) through (e) of paragraph 4.

    6. Notwithstanding paragraph 1, a Party may restrict transfers of returns in kind in circumstances where it could otherwise restrict such transfers under this Agreement, including as set out in paragraph 4.