Law No. 111 Of 24 November 1994

Original Language Title:  LEGE nr. 111 din 24 noiembrie 1994

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LAW No. 111 of 24 November 1994 ratification of the agreement between the Government of Romania and the Government of the Republic of Croatia concerning the reciprocal promotion and protection of investments, signed at Zagreb on 8 June 1994, published in PARLIAMENT ISSUING the OFFICIAL GAZETTE NR. 334 of 2 December 1994, the Romanian Parliament adopts this law.


The sole article Shall ratify the agreement between the Government of Romania and the Government of the Republic of Croatia concerning the reciprocal promotion and protection of investments, signed at Zagreb on 8 June 1994.
This law was adopted by the Senate at its meeting on 20 October 1994, in compliance with the provisions of art. 74 para. (2) of the Constitution of Romania.
SENATE PRESIDENT Prof. Dr. O'LEARY GAITAN this law was adopted by the Chamber of deputies at its meeting on 7 November 1994, in compliance with the provisions of art. 74 para. (2) of the Constitution of Romania.
p. CHAMBER of DEPUTIES PRESIDENT DAN agreement between MARTIAN Government of Romania and the Government of the Republic of Croatia concerning the reciprocal promotion and protection of investments the Government of Romania and the Government of the Republic of Croatia, hereinafter referred to as the Contracting Parties, desiring to intensify economic cooperation in the mutual benefit of both States, intentionind to create and maintain favourable conditions for investments by investors of one Contracting Party in the territory of the other Contracting Party , recognizing the need to promote and protect foreign investment in order to increase the economic prosperity of both countries, have agreed as follows: Article 1 Definitions for the purposes of this agreement: 1. the term "investor concerns in relation to each Contracting Party: a) natural persons who, in accordance with the legislation of that Contracting Party, shall be considered as its citizens;
  

b) legal persons, including companies, corporations, business associations and other organizations that are formed or otherwise organized, properly, in accordance with the legislation of that Contracting Party and which are established along with real economic activities on the territory of the same Contracting Party.
  

2. Term investments will include any kind of asset invested by investors of one Contracting Party in the territory of the other Contracting Party, in accordance with the laws and regulations of the latter, in particular, but not exclusively: a) the ownership of movable and immovable property and other rights in rem, such as encumbrances, mortgages, guarantees, pledges;
  

b) shares, shares, or any other kind of participation in companies;
  

c) rights or any other rights concerning the benefits that have an economic value;
  

d) intellectual property rights such as copyrights, patents, designs, trade marks or service, trademarks, know-how and goodwill, and any other similar rights recognized by the legislation of the Contracting Parties;
  

e) concession pursuant to public law, including concessions concerning the exploration, extraction or exploitation of natural resources, as well as any other rights conferred by law, by contract or by decision of the authorities, in accordance with the law.
  

Any change in the form in which assets are invested or reinvested shall not affect their character as investments.
3. the term income means amounts produced by an investment and include in particular, but not limited to, loss of profits, dividends, interest, royalties, capital increases, management and technical assistance or other fees, regardless of the form in which income is paid.
4. the term designating the Romanian territory or the territory of the Republic of Croatia, as well as those maritime areas including soil and subsoil adjacent to the outer limit of the territorial sea of each of the above Territories over which the State concerned, in accordance with international law, sovereign rights or jurisdiction for the purpose of exploration and exploitation of the natural resources of such areas.


Article 2 promotion, acceptance 1. Each Contracting Party shall promote, as possible, the investments carried out on its territory by investors of the other Contracting Party and shall admit such investments in accordance with its laws and regulations.
2. If a Contracting Party has accepted an investment on its territory, it shall be granted, in accordance with its laws and regulations, the necessary permits in connection with that investment, including authorizations for the commitment of the senior staff and technical of his choice, regardless of nationality.


Article 3 protection, treatment 1. Each Contracting Party shall protect its territory investments made in accordance with its laws and regulations, the other Contracting Party and investors will not affect measures unreasonable or discriminatory, management, maintenance, use, sale, taking advantage of the enlargement, or liquidation of such investments. In particular, each Contracting Party or its competent authorities shall issue the necessary authorisations referred to in article 1. 2 (2) of this agreement.
2. Each Contracting Party shall ensure fair and just treatment in the territory of the other party or investments of investors of the contracting. This treatment will not be less favourable than that accorded by each Contracting Party in the territory of investments or investors or than that accorded by each Contracting Party in the territory of or investments made by investors of any third State, whichever is the more favourable treatment.
3. the most-favoured-nation clause shall not be construed as an obligation of the contracting party to extend to investors of the other Contracting Party and investment advantages resulting from any customs or economic Union, existing or future, or free trade zone, to which any of the Contracting Parties is or becomes a member. This treatment will not refer either to the benefits that any Contracting Party shall provide the investors a third State by virtue of an agreement to avoid double taxation or other agreements on a reciprocal basis relating to taxation.


Article 4 Transfer free 1. Each Contracting Party on whose territory the investment has been made by investors of the other Contracting Party will grant those investors free transfer of the parties relating to these investments, in particular: (a) income, in accordance with article). 1. paragraph 3 of this agreement;
  

b) amounts arising from loans or other contractual commitments for investment; and (c)) the amounts derived from the sale of all or part, or liquidation of an investment gap.
  

2. Unless otherwise agreed with the investor, transfers shall be calculated at the exchange rate applicable on the date of transfer, in accordance with the foreign exchange regulations of the Contracting Party in whose territory the investment has been made.


Article 5 dispossession, compensation 1. None of the parties will not, either directly or indirectly, measures of expropriation, nationalization or any other measures of this nature and with the same effect against investments of investors of the other Contracting Party, unless measures are taken in the public interest, as it was established by law on a non-discriminatory basis and in accordance with legal procedure and provided they are taken through effective and adequate compensation. This compensation will be equivalent to market value of the investment expropriated immediately before the expropriation or before the impending expropriation to become known to the public, will include interest from the date of expropriation and shall be freely transferable.
2. Investors of one of the Contracting Parties whose investments have suffered losses due to war or other armed conflict, revolution, State of necessity, rebellion, which took place on the territory of the other Contracting Party, will benefit from the latter treatment in accordance with art. 3 (2) of this agreement. They will be entitled, in any event, the damages.


Article 6 this agreement agreement previous Investment may be applied legally and existing investments in the territory of a Contracting Party by investors of the other Contracting Parties before entry into force of this agreement. However the agreement shall not apply in the case of disputes that arose before its entry into force.


Article 7 other obligations 1. If the legislation of any other Contracting Party entails investments of investors of the other Contracting Party to a treatment more favourable than that provided for in this agreement, this legislation will govern this agreement, to the extent that it is more favourable.
2. Each Contracting Party shall observe any other obligation it assumed concerning the investments carried out in the territory or of the other contracting party investors.


Article 8 subrogarii Principle If any Contracting Party or the agency designated by it make payments to one of its investors under any financial guarantees against non-commercial risks, which he granted in connection with an investment in the territory of the other Contracting Party, the latter will recognize, by virtue of the principle of subrogarii, assignment of any right or title of the first Contracting Party of the investor or the agency designated by it. The other Contracting Party shall be entitled to deduct taxes and other legal obligations due and payable by the investor.


Article 9


Disputes between a Contracting Party and an investor of the other Contracting Party 1. For the purposes of dispute settlement regarding investments between a Contracting Party and an investor of the other Contracting Party, consultations shall be held between the parties concerned in order to solve the case as amicable as possible.
2. If the consultations do not lead to a solution within six months from the date of application of the regulation, the investor may be subject to dispute, at his choice, to: (a) the Court has jurisdiction) of the Contracting Party in whose territory the investment has been carried out; or b) International Centre for settlement of the Dispute related to investment (I.C.S.I.D.), established by the Convention for the settlement of disputes relating to investments between States and individuals of other States, opened for signature at Washington on 18 March 1965, after both sides have become Contracting Parties to this Convention; or c) an ad hoc arbitration tribunal, which unless otherwise agreed between the parties to the dispute, will be constituted on the basis of the rules of arbitration of the United Nations Commission on International Trade Law (UNCITRAL).
  

3. A Contracting Party which is a party to the dispute will not invoke in Defense during the procedures concerning disputes relating to investments, his immunity or that the investor has received an indemnity under a contract of insurance covering all or part of the damage loss times.


Article 10 Disputes between the Contracting Parties 1. Disputes between the Contracting Parties concerning the interpretation or application of the provisions of this Agreement shall be settled through diplomatic channels.
2. If the two parties cannot reach an agreement within 12 months after the onset of the dispute between them, he, at the request of any Contracting Party, shall be subject to an arbitration tribunal composed of three members. Each Contracting Party shall appoint an arbitrator and the two arbitrators shall appoint a President who will be a citizen of a third State.
3. If one of the parties has not appointed its own arbitrator and has not responded to the invitation to the other Contracting Party to make the appointment within two months, the arbitrator will be appointed, at the request of that Contracting Party, by the President of the International Court of Justice.
4. If both arbitrators cannot reach an agreement on electing the President within two months following their appointment, it will be called at the request of any Contracting Party, by the President of the International Court of Justice.
5. If, in the cases specified in paragraphs 3 and 4 of this article, the President of the International Court of Justice is prevented from fulfilling its function or is a national of one of the Contracting Parties, the appointment shall be made by the Vice President, and if the latter is prevented or if he is a national of one of the Contracting Parties, the appointment shall be made by the judge with the highest rank of the Court that is not a national of one of the Contracting Parties.
6. In the absence of other provisions as agreed by the parties, the Tribunal shall determine its procedure.
7. Each Contracting Party shall bear the costs of the arbitrator that named him and his representation in arbitration proceedings. Expenses for the President and other expenses shall be borne in equal parts by the Contracting Parties.
8. the Tribunal's Judgments are final and binding on each Contracting Party.


Article 11 Entry into force This agreement shall enter into force 30 days after the last date on which each Contracting Party shall notify the other Contracting Party, through diplomatic channels, that the legal requirements for the entry into force of this agreement have been fulfilled.


Article 12 duration and denunciation 1. This agreement shall remain in force for a period of 10 years and will continue to be in force for the same period or periods, if, one year before the expiry of the initial or any subsequent period, any Contracting Party shall notify the other Contracting Party not over its intention to terminate the agreement.
2. in the event of termination, the provisions of this Agreement shall continue to apply for a period of 10 years from the date of expiration of this agreement.
In witness whereof, the undersigned, being duly authorised by their respective Governments, have signed this agreement.
Done at Zagreb on 8 June 1994, in two originals in the English, Croatian and Romanian languages, each text being equally authentic. In case of divergence, will prevail in the English text.
For the Government of Romania, Nicolae Constantinescu, Secretary of State at the Ministry of finance for the Government of the Republic of Croatia, economy Minister Nadan Vidosevici — — — — — — — — — — — — — — — — — — — — — —