NAFTA: Treaty | Page 8

in kind,
and other amounts derived from the investment;
(b) proceeds from the sale of all or any part of the investment or from
the partial or complete liquidation of the investment;
(c) payments made under a contract entered into by the investor, or its
investment, including payments made pursuant to a loan agreement;
(d) payments made pursuant to Article 1110; and
(e) payments arising under Subchapter 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 shall require its investors to transfer, or penalize its
investors who fail to transfer, the income, earnings, profits or other
amounts derived from, or attributable to, an investment 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:
(a) bankruptcy, insolvency or the protection of the rights of creditors;
(b) issuing, trading or dealing in securities;
(c) criminal or penal offenses;

(d) reports of transfers of currency or other monetary instruments; or
(e) 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. A Party may restrict transfers of returns in kind only in
circumstances in which it could otherwise restrict such transfers under
this Agreement.
Article 1110: Expropriation and Compensation
1. No Party shall directly or indirectly nationalize or expropriate an
investment of an investor of another Party in its territory or take a
measure tantamount to nationalization or expropriation of such an
investment ("expropriation"), except:
(a) for a public purpose;
(b) on a non-discriminatory basis;
(c) in accordance with due process of law and the general principles of
treatment provided in Article 1105; and
(d) upon payment of compensation in accordance with paragraphs 2 to
6.
2. Compensation shall be equivalent to the fair market value of the
expropriated investment immediately before the expropriation took
place ("date of expropriation"), and shall not reflect any change in
value occurring because the intended expropriation had become known
earlier. Valuation criteria shall include going concern value, asset value
(including declared tax value of tangible property) and other criteria, as
appropriate to determine fair market value.
3. Compensation shall be paid without delay and be fully realizable.

4. If payment is made in a G7 currency, compensation shall include
interest at a commercially reasonable rate for that currency from the
date of expropriation until the date of actual payment thereof.
5. If a Party elects to pay in a currency other than a G7 currency, the
amount paid on the date of payment, if converted into a G7 currency at
the market rate of exchange prevailing on that date, shall be no less
than if the amount of compensation owed on the date of expropriation
had been converted into that G7 currency at the market rate of
exchange prevailing on that date, and interest had accrued at a
commercially reasonable rate for that G7 currency from the date of
expropriation until the date of payment.
6. Upon payment, compensation shall be freely transferable as provided
in Article 1109.
7. This Article does not apply to the issuance of compulsory licenses
granted in relation to intellectual property rights, or the revocation,
limitation or creation of intellectual property rights to the extent that
such issuance, revocation, limitation or creation is consistent with
Chapter Seventeen (Intellectual Property).
8. For purposes of this Article and for greater clarity, a non-
discriminatory measure of general application shall not be considered a
measure tantamount to an expropriation of a debt security or loan
covered by this Chapter solely on the ground that the measure imposes
costs on the debtor that cause it to default on the debt.
Article 1111: Special Formalities and Information Requirements
1. Nothing in Article 1102 shall be construed to prevent a Party from
adopting or maintaining a measure that prescribes special formalities in
connection with the establishment of investments by investors of
another Party, such as a requirement that investors be residents of the
Party or that investments be legally constituted under the laws and
regulations of the Party, provided that such formalities do not impair
the substance of the benefits of any of the provisions in this Chapter.

2. Notwithstanding Articles 1102 and 1103, a Party may require, from
an investor of another Party or its investment, routine business
information, to be used solely for informational or statistical purposes,
concerning that investment in its territory. The Party shall