Law No. 59 Of 15 April 1999

Original Language Title:  LEGE nr. 59 din 15 aprilie 1999

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Law No. 59 of 15 April 1999 on the ratification of the agreement between the Government of Romania and the Government of the State of Israel for the mutual promotion and protection of investments, signed at Jerusalem on 3 august 1998 PARLIAMENT ISSUING published in MONITORUL OFICIAL nr. 182 of 28 April 1999, the Romanian Parliament adopts this law.


The sole article Shall ratify the agreement between the Government and the Government of the State of Israel for the mutual promotion and protection of investments, signed at Jerusalem on 3 august 1998.
This law was adopted by the Senate at its meeting on 22 February 1999, in compliance with the provisions of art. 74 para. (2) of the Constitution of Romania.
p. PRESIDENT of the SENATE, DANIELS T this law was adopted by the Chamber of deputies at its meeting of 29 March 1999, in compliance with the provisions of art. 74 para. (2) of the Constitution of Romania.
p. CHAMBER of DEPUTIES PRESIDENT, PAULA IVANESCU AGREED between the Government and the Government of the State of Israel for the mutual promotion and protection of investments the Government of Romania and the Government of the State of Israel, hereinafter referred to as the Contracting Parties, desiring to intensify economic cooperation in the mutual benefit of both countries, intending to create favorable conditions for the development of investments of investors of one Contracting Party in the territory of the other Contracting Party, and recognizing that the promotion and protection of mutual investment on the basis of this agreement will result in the stimulation of business initiative and enhance prosperity in both countries, have agreed as follows: Article 1 Definitions 1. For the purposes of this agreement: the Term investment will involve) any kind of assets carried out in accordance with the laws and regulations of the Contracting Party in whose territory the investment is made, including, but not limited to: (i) ownership of movable and immovable property and any other rights in rem;
() rights arising from shares, bonds and other categories of legal participation in companies;
(iii) rights-claims the money and other assets, as well as regarding any activity having an economic value;
(iv) the rights deriving from the goodwill, intellectual property rights, technical processes and know-how;
(v) business concessions conferred by law or under contract, including concessions for prospecting, cultivation, extraction or exploitation of natural resources.

(b) a change in shape) in which assets are invested or reinvested in accordance with the laws and regulations of the Contracting Party in whose territory the investment is made, does not affect their character as investments within the meaning of this agreement.
  

c) shall mean: the investor with respect to Romania: — — — — — — — — — — — — — — — — — — — — — — — any physical person who, in accordance with applicable law, nationality and any Romanian legal entity constituted according to the law and which has its registered office in Romania;
With regard to the State of Israel: — — — — — — — — — — — — — — — — — — — — — — — — — — —-(i) natural persons who acquire the status of a permanent resident or citizen of the State of Israel in accordance with the applicable law of the State of Israel; or () companies, including corporations, businesses or associations, registered or established in accordance with the law of the State of Israel.
With regard to natural persons-a person who has both Israeli citizenship and Romanian citizenship, which invests in Israel, will not be considered to be an investor, for the purposes of this agreement.
With regard to legal entities-legal persons constituted in accordance with the law and having its principal place of Romanian in Romania, which is controlled, directly or indirectly, for the Israeli citizens will not be considered to be an investor, for the purposes of this agreement.

d) revenues will cover the amount produced by an investment, including, but not limited to: dividends, profits, interest, capital gains, royalties and fees.
  

e) territory will comprise the territory of each Contracting Party, including the territorial sea, as well as the continental shelf and the exclusive economic zone over which that State exercises, in accordance with internal legislation and international law, sovereignty, sovereign rights or jurisdiction.
  


Article 2 promotion and protection of investments 1. Each Contracting Party shall, on its territory, will encourage and create favourable conditions for investments by investors of the other Contracting Party and shall admit such investments in accordance with that right or to exercise the powers conferred by its laws.
2. Investments made by investors of each Contracting Party shall be given a fair and just treatment and they will enjoy full protection and security in the territory of the other Contracting Party. None of the parties will not hinder in any way unreasonable or discriminatory measures the management, maintenance, use, recovery or the right to dispose of the investment within the territory or by investors of the other Contracting Party.
3. Each Contracting Party undertakes to ensure that effective means of support of the claims and the scope of rights in connection with this agreement, investment authorizations and properties. None of the parties will not prevent the other Contracting Party the right of investors to have access to courts, tribunals and its administrative institutions, as well as to any other bodies exercising judicial powers.
4. Each Contracting Party shall publish all laws and legal regulations, which are related to or affecting its territory investments of investors of the other Contracting Party.


Article 3 most-favoured-nation Treatment 1. None of the parties will not be subject to, on its territory, or the income of investments of investors of the other Contracting Party a treatment less favourable than that which is given to investments of its own investors or investment income or income investors any times third State.
2. None of the parties will not be subject to, on its territory, the other contracting party investors a treatment less favourable than that which is granted to its own investors or to investors of a third State, in relation to the management, maintenance, use, recovery or disposal of their investments.
3. the provisions of this article shall not be construed to compel a Contracting Party to extend to investors of the other Contracting Party the benefit of any treatment, preference or privilege resulting from: a) any international agreement or arrangement relating wholly or mainly to taxation or any domestic legislation relating wholly or mainly to taxation; or b) any Customs Union or economic existence, any agreement on a free trade area, or any international agreement similar to that of any of the Contracting Parties is or may become a party.
  


Article 4 compensation for losses 1. Investors of one Contracting Party whose investments in the territory of the other Contracting Party suffer losses as a result of a war or other armed conflict, revolution, State of national emergency, riots, rebellions, insurectii or other similar events in the territory of the last Contracting Party, shall be granted by the latter Contracting Party, as regards restitution compensation, compensation or other regulators, a treatment no less favourable than that on which the last party to grant it to its own investors or to investors of any third State. Resulting payments shall be freely transferable.
2. Without violating the provisions of paragraph 1 of this article, the investors of a Contracting Party which, in any of the situations which indicated that paragraph, suffers losses in the territory of the other Contracting Party resulting from: (a) their rechizitionarea property) forces or authorities; or (b) the destruction of their property) of its forces or authorities, which was not caused by the actions of the battle or was not required by the necessity of the situation, will be granted adequate compensation or refund. Resulting payments shall be freely transferable.
  


Article 5 Expropriation and compensation 1. Investments made by investors of one Contracting Party in the territory of the other Contracting Party shall not be nationalized, expropriated or subjected to measures having an effect equivalent to nationalization or expropriation with (hereinafter: expropriation), except: (a)) public utility connected to internal needs of that Contracting Party;
  

(b) on a non-discriminatory basis); and c) for an appropriate and prompt compensation.
  

2. Compensation: a) will be equal to the market value of the expropriated investment immediately before the expropriation or before the impending expropriation to become known to the public, whichever occurs first;
  

b) will include interest, as required by law, until the date of payment; and (c)) will be carried out without delay, being actually feasible and freely transferable.
  

3. In the event that the value of the market cannot be determined easily, compensation will be determined on the basis of equitable principles, taking into account, inter alia, the capital invested, for the appreciation and depreciation of its current revenues, replacement value and other relevant factors.

4. Investors affected will be entitled, in accordance with the law of the contracting party making the expropriation, in which a prompt review of their case by a judicial authority or another independent authority of that Contracting Party, as well as the evaluation of their investment in accordance with the principles set out in this paragraph.


Article 6 currency Transfers 1. Each Contracting Party, in whose territory the investment has been made by investors of the other Contracting Party, will ensure that those investors transfer of payments relating to those investments in hard currency, particularly, but not exclusively, of: (a) capital and additional amounts) necessary for the maintenance and development of investment;
  

b) income, in accordance with article 5. and (b). d) of this agreement;
  

c) amounts for repayment of borrowings, incurred and documented, with direct reference to a specific investment;
  

d) amounts resulting from total or partial sale, alienation or liquidation of an investment;
  

(e) the compensation referred to in article). 4 and 5;
  

f) earnings of citizens of a Contracting Party who are allowed to work, in accordance with the laws and legal regulations in force, relating to an investment in the territory of the other Contracting Party.
  

2. The transfers will be carried out without undue delay in the convertible currency in which the capital was originally invested or in any other convertible currency agreed by the investor and the Contracting Party, at the exchange rate applicable on the date of transfer, in accordance with the legal regulations in currency exchange rates in force in the Contracting Party in whose territory the investment has been made, and provided that the investor be fulfilled all their tax liabilities.
Where legal exchange regulations of a Contracting Party shall alter, that Contracting Party shall ensure that those changes will not affect your rights to repatriation of investments and the income, but they will remain in force as they were at the time the investment was made. However, if these changes will provide investment and income conditions more favourable than those which were in force at the time of the investment, the most favourable conditions will prevail.
3. The Contracting Parties undertake to grant to the transfers referred to in paragraphs 1 and 2 of this article, a treatment no less favourable than that accorded to transfers related to investments made by investors of any third State.


Article 7 settlement of the disputes relating to investments between a Contracting Party and an investor 1. Any dispute between a Contracting Party and an investor of the other Contracting Party concerning an investment of that investor in the territory of the first Contracting Party will be resolved, if possible, in a friendly way, through consultations and negotiations between the parties to the dispute.
2. If such a dispute cannot be resolved amicably or in some other way within six months from the date of notification in writing of the existence of the dispute, then the investor concerned may establish procedures governing, by addressing a written request either:-the competent court of the Contracting Party in the territory of the State in which the investment was made;
-international arbitration in accordance with the provisions of paragraph 3 of this article.
When the investor has subjected the dispute to the competent court of the Contracting Party in whose territory the investment has been made or the international arbitrage, the investor shall have the right to withdraw the application for the chosen procedure and submit the dispute to the other procedures provided to date have been still a final and binding judgment.
3. In the case of international arbitration, at the choice of the investor, the dispute may be submitted to the International Centre for the settlement of Disputes relating to investment (hereinafter referred to as the Centre), established on the basis of the Convention for the settlement of investment disputes between States and the people of other States, opened for signature at Washington on 18 March 1965.
4. If the investor choose international arbitration, the Contracting Party which is a party to the dispute thereby consents to the submission of the dispute to the arbitration of such an investment.
5. A Contracting Party that is a party to the dispute, at any time during the procedures for disputes relating to investments, you will not be able to use his immunity as a defence, or the fact that the investor has received compensation as a result of an insurance contract that covers all or part of the damage or loss.
6. No Contracting Party won't pursue diplomatic ways any dispute referred to the Centre, except where: (a) the Centre's Secretary-General) or a Conciliation Commission or a Court of arbitration set up by it, decide that dispute is not under the jurisdiction of the Centre; or (b)) other Contracting Party refuses to comply with a judgment given by a Court of arbitration.
  

7. All decisions of the arbitration shall be final and binding on the parties to the dispute.
8. All amounts received as a result of the settlement shall be freely transferable.


Article 8 settlement of the disputes between the Contracting Parties 1. Disputes between the Contracting Parties concerning the interpretation or application of the provisions of this Agreement shall be governed through diplomatic ways.
2. If the two parties cannot reach an agreement within six months of the notification of the dispute, the dispute shall be submitted, at the request of any Contracting Party, to an arbitration tribunal composed of three members. Each Contracting Party shall designate one arbitrator and these arbitrators shall appoint 2 a President who will be a citizen of a third State.
3. If one of the parties has not appointed the arbitrator and has not responded to the invitation to the other Contracting Party to make this designation within two months, the arbitrator will be appointed, at the request of that Contracting Party, by the President of the Permanent Court of arbitration.
4. If both referees fail to arrive at an agreement with regard to the choice of the Chairman within two months of their appointment, it will be called at the request of any Contracting Party, by the President of the Permanent Court of arbitration.
5. If, in the cases referred to in paragraphs 3 and 4 of this article, the President of the Permanent Court of arbitration is prevented from exercising that function or if he is a citizen of any other Contracting Party, the appointment will be made by the Vice President, and if the latter is prevented from exercising that function or if he is a citizen of any other Contracting Party, the appointment will be made by the judge with the greatest function within the Court who is not a citizen of any of the Contracting Parties.
6. subject to the other provisions of the Contracting Parties database, the Tribunal shall determine its own procedure.
7. Each Contracting Party shall bear the costs of the arbitrator that appointed him or her and of its representation in arbitration proceedings. Expenses for the President and other expenses shall be borne equally by the parties.
8. the Tribunal's Judgments are final and binding on each Contracting Party.


Article 9 Subrogation if a Contracting Party or designated agency (hereinafter: the first Contracting Party) makes a payment on account of compensation data relating to an investment in the territory of the other Contracting Party (hereinafter: the second Contracting Party), of the second Contracting Party shall recognize: (a)) transfer to the first Contracting Party, on the basis of law or a lawful transaction , of all rights and claims to the party despagubite and the fact that the first Contracting Party shall be entitled to the same treatment with respect to rights and claims as part despagubita; and (b)) as the first Contracting Party shall be entitled to exercise such rights, and to support such claims by virtue of subrogarii and for any payment received as a result of such rights and claims in the same measure as the despagubita.
  

Any payments received in foreign currency neconvertibila the first Contracting Party as a result of the rights and claims acquired by it shall be freely usable by the first Contracting Party to perform any expenditure incurred within the territory of the Contracting Party.


Article 10 application of other rules If the law of any Contracting Party or obligations under international law, existing at present or that will be established in the future between the Contracting Parties in addition to this agreement, contain general rules, either, be specific, convinced investors that the investments of the other Contracting Party to a treatment more favourable than is provided for by this agreement, such rules, to the extent that they will be more favourable , will prevail over this agreement.


Article 11 scope 1. This agreement shall apply to investments in the territory of a Contracting Party, in accordance with the laws and legal regulations by investors of the other Contracting Party either before or after the entry into force of this agreement.

2. However the disputes that have arisen before entry into force of this Agreement shall be resolved in accordance with the provisions of the agreement between the Government and the Government of the State of Israel for the mutual promotion and protection of investments, signed at Jerusalem on 2 September 1991.


Article 12 entry into force 1. Each Contracting Party shall notify the other Contracting Parties of the completion of the procedures required for the entry into force of this agreement. This agreement shall enter into force on the date of the last notification.
2. Without violating the provisions of paragraph 2 of article 9. 11 of this agreement, from the date of its entry into force, this Agreement shall replace the agreement between the Government and the Government of the State of Israel for the mutual promotion and protection of investments, signed at Jerusalem on 2 September 1991.


Article 13 the validity and expiration of This agreement shall remain in force for a period of 10 years. Later he will continue to be in force until the expiry of 12 months from the date on which either Contracting Party shall notify the other Contracting Party in writing about the cessation of its validity. In respect of investments made during the validity of the agreement, its provisions shall continue to be valid on these investments for a period of 10 years from the date of expiry and without prejudice to the continued application of the General rules of international law.
In witness whereof the undersigned, being duly authorized thereto by their respective Governments, have signed this agreement.
Signed at Jerusalem on 3 august 1998, the date that corresponds to the day of 11 AV. 5758, in two originals, in the Dutch, Romanian, Hebrew, and English languages, all three texts being equally authentic. In case of divergence of interpretation, the English text shall prevail.
For the Government, Prime Minister RADU VASILE For State Government, Israel Prime Minister BENJAMIN NETANYAHU — — — — — — — —