Chapter Two
Protection of Foreign Investment

Article 8.    Legal guarantees for foreign investment

1. Foreign investment within the territory of Mongolia shall enjoy the legal protection guaranteed by the Constitution, this law and other legislation which is consistent with those laws and as guaranteed by the international treaties to which Mongolia is a party.
2. Foreign investment within the territory of Mongolia shall not be unlawfully expropriated. /The word “nationalized� was cancelled from this paragraph by the Law of January 3, 2002/
3. Investments of foreign investors may be expropriated only for public purposes or interests and only in accordance with due process of law on a non-discriminatory basis and on payment of full compensation.
4. Unless provided otherwise in any international treaties to which Mongolia is a party, the amount of compensation shall be determined by the value of the expropriated assets at the time of expropriation or public notice of expropriation. Such compensation shall be paid without delay.
5. Losses suffered by foreign investors due to a state of emergency or war in Mongolia shall be treated equally with losses suffered by Mongolian investors.

Article 9.    Treatment of foreign investors

Mongolia shall accord to foreign investors no less favourable treatment in respect of the possession, use, and disposal of their investments than that accorded Mongolian investors.

Article 10.    Rights and obligations of foreign investors

1. Foreign investors shall enjoy the following rights:
1)to possess, use, and dispose of their property including the repatriation of investments which contributed to the equity of a business entity with foreign investment; This subparagraph was amended by the Law of January 3, 2002/
2)to manage or to participate in managing a business entity with foreign investment;
3)to transfer their rights and obligations to other persons in accordance with the law;
4)Remit the following income, profit and payments to abroad without any barriers:
(a) allotted stockholders income and share dividends;
(b) allotted income after property and securities’ sale, transfer of property right to other party, completion of an investment agreement and liquidation of an entity;
(c) principal and interest of debt or other identical payments;
(d) compensation payment for confiscated property;
(e) other income gained under the legislation of Mongolia. /This subparagraph was re- edited by the Law of January 3, 2002/
5)any other rights conferred by law.
2. Foreign investors shall have the following obligations:
1)to observe the laws of Mongolia;
2)follow commitments stated in the Agreement and Statute of the business entity with foreign investment, branch of a foreign legal entity and in Investment agreement; /This subparagraph was re-edited by the Law of January 3, 2002/
3)to implement measures to ensure the protection and restoration of the natural environment;
4)to respect the customs and traditions of the people of Mongolia.