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Developing Strategic Projects - Project Executive Group

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Risk Issues in Detail – Cross-Border (Political) - 2<br />

• Collateral risks<br />

– Types of collateral security allowed by<br />

the Sovereign Government?<br />

– Local formality compliance?<br />

– Priority of liens?<br />

– How is lien enforced?<br />

– How does foreclosure process work?<br />

– Collateral trusts<br />

– Real property issues?<br />

– Interaction among risks?<br />

• Law and Legal Systems risks<br />

– Choice of law?<br />

– Agent for process and submission to<br />

jurisdiction?<br />

– Fees, approvals and filings<br />

– Legal expertise and experience<br />

– General business law and regulation<br />

– Waiver of Sovereign Immunity?<br />

• Illiquidity of equity investment<br />

• Freezing or blocking orders<br />

• Export prohibitions<br />

• Price controls and regulation<br />

• Commercial or political – or both?<br />

© 2006 Paul Allen and Hossein Razavi

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