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Maltese Laws |
LOCAL LOANS (REGISTERED STOCK AND SECURITIES) ORDINANCE
To repeal and re-enact the law declaring the terms and conditions applicable to local loans authorized to be raised by the Government of Malta and to make provision in this connection for the creation and issue of registered stock in addition to the issue of securities in the form of debentures.
4th December, 1959
Enacted by ORDINANCE XVIII of 1959, as amended by Acts: X of 1963, XXVII of 1971, XXXIV of 1972, XVIII of 1991, XVI of 1997 and IV of 1999.
ARRANGEMENT OF ORDINANCE
Articles
Part I. Preliminary 1-3
Part II. Power to Raise Loans 4-7
Part III. Registered Stock 8-16
Part IV. Debentures 17-20
Part V. Payment of Interest on Stock and Securities 21-24
Part VI. Sinking Funds 25-30
Part VII. Conversion of Loans 31-32
Part VIII. Issue of Duplicates and Renewals of Stock Certificates and
Securities and Exchange and Consolidation
33-39
Part IX. Miscellaneous 40-44
PART I
PRELIMINARY
Short title. 1. The title of this Ordinance is Local Loans (Registered
Stock and Securities) Ordinance.
Interpretation. Amended by: XXXIV.1972.2.
"Acco unt an t Gen e r a l " means the Acco unt an t Gen e r a l of th e
Government of Malta;
"debenture" means any debenture issued under the provisions of this Ordinance;
"Malta" has the same meaning as is assigned to it by article 124 of the Constitution of Malta;
"the register" means the register of stock kept by the Accountant
General for the purpose of this Ordinance;
"registered stock" or "stock" means Malta stock issued under the provisions of this Ordinance;
"security" means any debenture issued under the provisions of this Ordinance;
"stockholder" means a person holding registered stock who is entered as the owner thereof in the register.
Scope. 3. This Ordinance shall be applicable only to loans raised locally in Malta.
PART II
Issue of registered stock and debentures for the purpose of raising authorized loans. Amended by:
X. 1963.2; XXVII. 1971.2.
POWER TO RAISE LOANS
(a) by the creation and issue of registered stock;
(b) by the issue of securities in the form of debentures.
(2) Each issue of registered stock or securities under this Ordinance for the purpose of raising any specified sum of money
shall be deemed to be stock or s ecurities issued in resp ect of a separate loan notwithstanding that the sum of money so raised
is part only of a sum of money authorized by any other enactment to be raised by way of loan.
(a) the sum of money to be raised by that loan; (b) the mode or modes of raising the loan;
(c) the rate of interest payable on the loan;
(d) the dates in each year on which the half-yearly interest of the loan shall be payable;
(e) the rate, if any, at which a half-yearly appropriation out of the general revenue and assets of the Government
of Malta shall be made as a contribution to the sinking fund established for the purpose of redeeming that loan and the
period within which such contribution shall commence;
(f) the date of redemption of the registered stock or securities to be issued for the purpose of raising that loan and,
where applicable, the method of redemption of such stock or securities;
(g) whether the interest payable on any registered stock or debentures issued under the authority of this Ordinance
shall be exempt from all or any of the taxes and duties payable under any other law in force in Malta.
(2) The date of redemption of any registered stock or securities shall not be later than sixty years from the date of issue of such
stock or securities.
(3) Where the Minister responsible for finance deems it expedient to reserve an option to redeem any registered stock
or securities at any date earlier than the date of redemption specified for such stock or securities by the directions under sub-article
(1), he shall by such directions further specify the terms and conditions on which such stock or securities may be redeemed at any
earlier date.
Loans to be charged upon revenue.
Minister to direct mode of raising loans and other particulars. Amended by:
X. 1963.2; IV.1999.2.
Accountant General to make necessary arrangements. Amended by:
X. 1963.2.
PART III
REGISTERED STOCK
Register of stock. 8. The Accountant General shall keep a register in respect of each issue of registered stock under this Ordinance in which all such stock and all transfers of and all dealings in such stock shall be registered and in which shall be entered all matters and things which by this Ordinance are required to be entered in the register.
Liability of Government in respect of issue of registered stock. Amended by:
X. 1963.2.
Stockholder. 10. For the purposes of this Ordinance, no person shall be en ti tled to any regi stered st ock un less he i s regi stered as a stockholder in respect thereof.
Registration of first stockholders.
Stock certificate. 12. Every stockholder shall be entitled to obtain from the Accountant General a stock certificate in a form to be prescribed and no stockholder, other than the first stockholder, of any stock shall be entitled to obtain a stock certificate save upon payment of the prescribed fee:
Provided that one stock certificate only shall be issued in respect of any one holding.
Transfer of registered stock.
(2) Interest which has fallen due in respect of any registered stock at the date of any transfer of such stock but which has not
been paid to the stockholder for the time being, shall not be deemed to be payable to a transferee of that stock unless the instrument
of transfer expressly provides for the payment of that interest to that transferee.
(3) When the Accountant General is satisfied that a stockholder has died he may, subject to the provisions of article 14 (b), cause the stock of the deceased stockholder to be transferred into the name of an y p e rso n w ho pro v es to his sati sfacti
on that he is lawfully entitled to the stock on the death of the stockholder.
Registration of transfers of stock.
(a) in the case of a transfer under article 13(1) he has
surrendered to the Accountant General the stock certificate and the instrument of transfer relating to that stock and
has paid the prescribed fee; or
(b) in the case of a transfer under article 13(3) he has surrendered to the Accountant General the stock certificate
relating to the stock of the deceased stockholder and paid the prescribed fee.
Provided that, notwithstanding the provisions of any other law, a copy of any entry in the register certified under the hand of the Accountant General to be a true copy of the original entry shall be receivable in evidence in any judicial proceeding and shall, until the contrary is proved, be deemed to be evidence of the contents of the entry in the register.
Closing of register.
Register to be conclusive evidence of facts entered therein.
PART IV
DEBENTURES
(2) Every debenture shall be signed by the Accountant General for and on behalf of the Government and shall, when issued, bind
the Government to pay the principal sum and the interest thereon in accordance with the provisions of this Ordinance, at the rate
and on the dates specified in the directions by the Minister responsible for finance under article 6 or in pursuance of an option
to redeem such debenture reserved in such directions.
(3) Debentures shall be issued in such form and in such denominations as the Minister responsible for finance may direct.
Debentures. Amended by: X.1963.2.
Provided that the number of coupons attached to a debenture on the date of its issue to any person may cover a period
shorter than that of the currency of the debenture if, in the opinion of the Accountant General, it is inconvenient o r inexpedient
to attach to the debenture coupons sufficient in number to cover the entirety of the period of the currency of the debenture.
(2) If the number of coupons attached to any debenture on the date of its issue to any person is insufficient to cover all payments
of interest due on that debenture after that date, the holder of that
Interest coupons.
debenture shall be entitled to a renewal thereof at such time and in such manner and circumstances as may be prescribed.
Registered debentures.
(2) Registered debentures shall be transferable by instrument in writing in such form and subject to such conditions as may be prescribed.
Bearer debentures. 20. (1) Every debenture payable to bearer shall, before being issued, be registered by the Accountant General in a register to be kept for that purpose.
(2) Redemption moneys and interest moneys payable on any bearer debent ure issued un der th e prov isions of this O rdinan ce shall
be payable only to a person who at the time that such moneys are payable is, or at the time when he subscribed for or otherwise acquired
such debenture was, ordinarily resident in Malta.
(3) Every bearer debenture and coupon, and the right to receive the prin cipal amount and interest repres ented there by, shall
be transferable by delivery.
PART V
Appropriation of revenue for payment of interest.
Amended by: X. 1963.2.
Payment of interest. Amended by: X. 1963.2.
PAYMENT OF INTEREST ON STOCK AND SECURITIES
(2) Where any amount has become payable on any date as interest due on any registered stock or securities, no interest on that amount shall, after that date, be paid or payable by the Government to any person in any circumstances.
Cessation of liability to pay interest.
Payments. Amended by: IV.1999.3.
PART VI
SINKING FUNDS
(2) The dividends, interest, bonus and other profit of any investment of any pa rt of any sinking fund shall be placed at inte rest or invested as directed by the M iniste r responsible for finance so as to form part of that sinking fund in like manner as mo neys appropriat e d u nder arti cl e 2 5 as cont ri but ion s to th e sinking fund.
Appropriation of revenue for sinking fund.
Amended by: X.1963.2.
Separate sinking fund for each loan.
Investment of sinking fund. Amended by: X.1963.2. Substituted by: XXXIV.1972.3.
Provided, however, that the contributions to that sinking fund shall be recom m enced if the Account an t General at an y tim e thereafter informs the Minister responsible for finance that he is no longer satisfied that the sinking fund with further accumulations of interest will be sufficient for the redemption of that loan.
Cessation of contributions to sinking fund. Amended by: X.1963.2; XXXIV.1972.4.
Expenses to be paid out of sinking fund.
Deficiency in sinking fund to be a charge upon revenue.
Amended by: IV. 1999.4.
PART VII
Power of Minister to authorize conversion of loan generally. Amended by:
X. 1963.2.
Creation and issue of stock or securities necessary for conversion.
Creation and issue of stock or securities to meet expenses of conversion.
New stock or securities may have all privileges
of original stock or securities.
CONVERSION OF LOANS
(a) he may declare any stock or securities issued in Malta under the provisions of this or any other law to be convertible
into registered stock or other securities to be issued under the provisions of this Ordinance;
(b) he may authorize the creation and issue under this Ordinance of such an amount of registered stock or securities as
may be necessary for the conversion of the stock or securities in respect of which a declaration has been made under paragraph (a);
(c) he may authorize the creation and issue under this Ordinance of such registered stock or securities as may be necessary
for the purpose of paying any expenses incurred in the creation and issue of registered stock or securities under this article;
(d) he may declare that all privileges, exemptions and immunities attaching by virtue of any law in force in Malta to any
stock or securities shall attach to any new registered stock or securities issued under this Ordinance in conversion
of such earlier stock or securities.
Arrangements for conversion.
PART VIII
ISSUE OF DUPLICATES AND RENEWALS OF STOCK CERTIFICATES AND SECURITIES AND EXCHANGE AND CONSOLIDATION
(2) The Accountant General may issue renewals of stock certificates and securities in such circumstances as may be prescribed.
Issue of duplicates and renewals.
(a) issue a notice to the holder of any security directing him to apply for a renewal of that security; and
(b) withhold payment of the interest or principal amount due in respect of that security until the application for renewal has been
made and determined.
Right of Accountant General to compel renewal of securities.
Provided that -
(a) all stock and securities so given or taken in exchange shall have been issued in respect of the same loan; and
(b) the nominal value of the stock or securities given by the Accountant General in exchange shall be the same as the nominal value
of the stock or securities taken by him in exchange.
Exchange of registered stock and securities.
Accountant General may -
(a) on the application of a person claiming to be entitled to any stock or securities, and
(b) on being satisfied of the justice of the claim of such applicant, and
(c) on surrender of the stock certificate relating to such stock or of such securities receipted in the prescribed manner, and
(d) on payment of the prescribed fee,
consolidate or subdivide such stock or securities and issue to the applicant one or more new stock certificates or securities as may
be required.
Consolidation and subdivision of stock and securities.
Indemnity bonds.
Immediate discharge in certain cases.
Discharge in other cases.
a duplicate security or for the exchange, renewal, consolidation or subdivision of any stock or securities, the Accountant General may require the applicant, as a condition precedent to the grant of the application, to execute a bond, in such form and subject to such security as the Accountan t General m ay d i rect, undertaking to i ndem n ify t h e G overnmen t agai nst t h e cl aims of all p e rson s claiming under the original stock certificate or security or under the st ock or secu rities so exch ang e d , ren e wed, consol idated or subdivided, as the case may be.
36, the Government shall be discharged in the same way and to the same extent as if such debenture was a promissory note payable to bearer.
(a) in respect of any registered stock or security redeemed on or after the date on which payment of the principal amount becomes
due, be discharged after the lapse of six years from that date;
(b) in respect of any security in place of which a duplicate is issued under article 33, be discharged after the lapse of six years
from the date of the issue of such duplicate or from the date of the last payment of interest on such security, whichever date is
the later;
(c) in respect of a security for which a renewed security is issued under article 33 or in respect of stock or securities
in place of which new stock or securities are issued upon an exchange under article 35 or upon a consolidation or subdivision
under article 36, be discharged after the lapse of six years from the date of the issue of the renewed security or of the new
stock or securities, as the case may be.
PART IX
Signature of Accountant General may be printed on stock or securities.
Exemption from duty on documents.
MISCELLANEOUS
(2) Nothing in this article shall apply to the Auditor General or to the Commissioner of Inland Revenue.
Inspection of register and documents. Amended by: XVI.1997.8.
(2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of
the following matters:
(a) the manner in which payment of interest in respect of stock or securities is to be made and acknowledged;
(b) the issue of duplicate stock certificates and duplicate securities;
(c) the renewal of stock certificates and securities;
(d) the manner of payment of interest to joint holders of stock or securities;
(e) the circumstances in which alterations may be made in the register;
(f) the payment of principal or interest and transfer of stock and securities in the case of persons under a legal
disability;
(g) the disposal of unclaimed interest;
(h) the conditions subject to which stock or securities may be exchanged, consolidated or subdivided;
(i) the fees to be paid in respect of anything to be issued or done under the provisions of this Ordinance;
(j) all matters required by this Ordinance to be prescribed and all matters incidental to or connected with the matters hereinbefore
enumerated.
Regulations. Amended by: X.1963.2.
Non-applicability of certain articles of this Ordinance. Added by:
XVIII. 1991.2.
Cap. 345.
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