ALCA FTAA ZLEA - Investment: Transfers - Brazil/Chile

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Investment Agreements in the Western Hemisphere: A Compendium

Agreement Between Brazil and Chile
22 March 1994

Subject: IV. Transfers

A. Types of Payment

1. Returns
Yes. Each Contracting Party shall allow the free transfer of payments related to investments effected in its territory by the investors of the other Contracting Party, in particular, but not exclusively: a) the initial capital and any other additional capital for the maintenance and development of an investment; b) returns; c) indemnifications as provided in Article IV and payments that shall be effected by virtue of the dispute settlement mechanism between an investor and the host country; d) proceeds of the sale or the total or partial liquidation of an investment; e) amortization of loans; f) salaries of personnel. (Article V (1)).

2. Repayment of Loans
Yes. (Article V (1) (e)).

3. Proceeds of Total or Partial Liquidation of an Investment
Yes. (Article V (1) (d)).

4. Licenses and Other Fees

5. Other Categories of Payments Yes. (Article V (1) (a), (c), (f)).

B. Convertibilty and Exchange Rates

1.Currency
Transfers shall be authorized in the currency in which the investment was made or when requested by the investor in another convertible currency. (Article V (3)).

2. Exchange Rates

3. Time of Transfer
Transfers shall be effected without delay. (Article V (2)). The expression "without delay" means the normal period of time necessary to fulfill the legal and regulatory demands for a transfer. Such period of time shall not exceed six months, and shall begin at the time of the fulfillment of these demands. Transfers relative to investments made in the Special Program for the Conversion of the External Debt of Chile and Brazil are subject to special rules. (Protocol). Notwithstanding Article V (1), the Government of Chile reserves the right to allow the repatriation of capital in a period of time established in its legislation, which in no case could exceed one year after the investment has been made. (Protocol).


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