ACT No. XXIV of 1986 AN ACT /uTthu to a~"d t~ Merchant Shipping Act, 1973.

(LS.)

NiA TlfA BAu.u...

President

4th J uly. 1986

ACT No. XXIV of 1986

AN ACT /uTthu to a~"d t~ Merchant Shipping Act, 1973.

BE IT ENACfEO by the President. by and with the advice aod

consent of the House of R Cpre5enUltive5. in th is present Parliament

as&cmbled and by the authorit y of the same, as follows;-

I . This Act may be cited as !be Men:hant Sbippilltl (Amendmcot)

Act. 1986. and shall be read and 00I1$ltUed as ODe wi tb the Merchan t

Sh ipping Act. 1973. hereinafter referred to as "the principal Act",

Soction 6 of the principal Act shall be amended lL'I follows;

-

tbe present provision shall be renumbered as subsection

I.)

(I); and

(h) immediately . fter subsection (I) as reoumbcn:d there shall

be added the followi ng new subsection

"(2) 'The MioiJlcr may with the concurrence of the

Minister responsible for finance. by regulations amend. add to.

vary. revoke or substitut e the First Schedule to this Act." ,

J. For subsection (3) cilleCliaa 7 of the principal A ct. there sball

be 5l1bsti ruted the following

" (31 Save iD soch cin;u.lD$iaDCeS in which , in aa:on1aDce wi th

suc:h regulatiOO5 as -tbe..MiniJter may make . there it an abatement

or • refund of lees, fees on rnt registration and lIlDuai fees shall

aot be subjeo::t 10 abatement or refund for any reason whatsoever ....

Section 10 or the principal Act s!\all be amended u follows

Ernrod. 10'

I·ortikolu 6 10'

I·,." prin<ipa~.

(a) jI-prowedimelll li hcmm gban du jingbata numru ~did

bllal. ,ubartik-olu (I); u

(b) minnu fih wara wubartikol u (l) kif enumera t mill'!did

gbaDd u jidbol dan is-subartikolu gdid

"(2) I1-Mini5tru jisla' bi flchim mal-Ministru m poo-

sabbli gbB l1-finanzi. pcrmeu la' regolamcnti li jagbmel. }emen-

da, itid ma', ibiddcl, ihassar }ew jissoslilwiui I-E~I Skcda

Ji hcmm ma' dan I·AI!. ...

l . Minnok is-subartikolu (3) ta ' l-artikolu 7 la' I·AII prinCipali

gbandu jidl'lo[ dan U ie;

"m

Mild f dawk ie<irkoslanzi li fthom, skond dawlc iT' ,..;..t ; paI ~

regol amenli li ]·Minisltu jis\I' jagl'lmcl ikun bemm Inaqqis jew radd

Iura la' drillijiet. id-drillij icl da vuli gl'lal1-ewwel regislraujoni u

d-driltijiel la ' kull $ena ma jkunux soUctti glial IDaqqis u rna jin·

ghalaWlt Iura gbal ebda ra~un i Ikun [lema Ikun.".

L-art ilwl u 10 la ' I·An printipali ghnndu jiii cmcndat kif

i~i.tely

at the end of subsection (I) lbawf

(.)

there

shall be added !be foUowin, proviso

"Provided that where a ny mortgage is entered in the

register in respect of that ship. lhe ship's registrar shall give

one month's notice in writing to the mortgagees. of the

intention that the ship will no longer be registered .": and

(b) in subsection (2) thereof immediately afler the words

"from the Minister" there shall be inserted the words "and at the

lap$e of a month from the giving of the notice mentioned in the

proviso 10 subsection III of Ihis section. where applicable,".

S. The followiog provi$o shall be

paragraph (b) of

added to

section 16 of the principal Ace

"Provided that the Minister OIay. in such circumstances as he

may deem appropriate, dire<:t tha t 00 $UCh certificate shal l be _

quired where subsequent 10 a court ordeT in Malta in a sale by

auction of!IIe ship. or any oIlier order of that coun. the owner

has attempted to obtain such cer1 ificate but due to reasons beyond

the control of llle owllCr inordinate deJay hlu occurred. The Minister

may give any direction as to the production of such other doeu·

menlS as he dce!ll$ fit. ...

TIle following proviso shaH be addtd 10 subsection (I) of section

26 of the principal Acl

" Provided that no tr:In sfer of a Maltese ship may take place

in fa\'our of persons who are nOl qua lified to own a Maltese ship.

unless there is produced to the re gistr:lr, the consent in writing

of an the mongag<.:e$ whose morlgages are dul y registered ill respect

of the ship. saving " .. here the transfeT il made pursuant to a court

order ill a sale by auction of IUCh a ship or pursuant to any OIller

COIIrt arder ....

1. lm/Ded jaldy afceT the wordJ "e ntered thercin ~ in panlgl'1lph

(a) or 5ubsection (I) or sec lion 30 C'A the principal Act there shall be

inserted !be following words - and tbe mortgagees shall have lhe right

to demand the immediate $Ilk of the ,hip or share tberein as if che

debtor had DOt adhered to all the conditions under which the credit

was gra nted".

Immediately afJer subsect ion (2 ) nf sc(:lion J2 of the principal

Act. there shalt be added the following new !ubseclion

(3) No transfer of a Mal tese ship may he made in fa vour

of persons who are not quulified 10 own a Maltese sbip. unless

there is the consent in wri ting for such tr:Iru;fcr of all lhe mort-

IllLgccli whose mortgage, a~ duly registered in respect of the ship.

s'LYing where the transfer is made pursuant to a court ordtr in a

sale by auction of such a ship or pursuant to any other court

order. ~.

ImLnediatcly after the provIso 10 5CClion 40 of th e pn llCipal

_ _ .., 01 'M Act there shall be added the following ne ... proviso;

" Provided funher. that where a shi p has been 50ld PLLrsuant

to a court order in the sale by auction of !be ship. by a competent

COUrt within whose jurisd iction the \'essel was at the lime or me

sak. the interest of the mortga~ In the ,hip shall pass OD to the

proceeds of the sale of tile Ship, and where in any such case !be

purchaser is Dot a person who is qualified to own a Maltese ship,

upon obla ini ng knowledge or being gi,·en notice of suc h a fact

and upon ~iviog copies of the proceedings of the sale. certified

10 his satisfaction. the registrar shall make a n entry thereof in the

register book and the register of the vessel shall be considered as

closed except in so far as relale$ 10 any UllUtisfled mortgages

or existi ng certificates of mortgage: entered there in.".

Sedon 42 of the principal Act shall be ame nded as follows

(a) the present provision sllall be renum~ as subsection prind~t I\ct.

(I) thereof; Ind

(b) immediately after subse<: tinn (I) thereof as renumbered

there shall be added the following sub!ection

"(2) A registered mortgage sha ll be dffmed to be an

executive title for the purposes of se<:tion 251 of the Code of

Organisation and Civil Procedure wbcre tbe obliga tion it

secures is 11 debt certain liquidated and due and DOt consisting

in the pc:rfonna nec of an act.~.

Immed iately after section 4S of the principal Act tbcre shall ....wiOOo of

be added the following new section

4SA . (]) Where a registered mortgage is amended the

ship·s registrar sha ll on Ihe production of the instrument of

mortgage executed in accordance wi th the provisiODli of sec-

tion 38 of this Act CODtaining tbe amendment. IOgether wilh

the written consent of the sa id instrument. of the mortgagee

whose mortgage has been amended. make a nole thereof

in the register book to the clfect that the mortgage Iw been

amended. and any soch amendment shall form an inJegral

pan of the regis tered mortgage which il amends and such

mortgage. as amended. shall con ti nue to have the same

priori ty as it had before the amendment was noICd.

(2) Subject to lhe provisions of subsections t3I and

(4) of this section an amendment of a mortgage may be

effected for any purpose and in particular may be effec ted

for anyone or more of the following purposes

(a) to change lhe name and. or. tlte address or the

mort gagor or of the mortgagee;

(b) 10 increase or decTease the amou nl secured by

the mortgage or 10 ex tend the purpose: of the loo n. se·

cured by the mortgage;

(c) to change the times for lhe repayment of a loan

or ot her debt tecured by the mortage;

(d) to ehange the in terest rutes on a loan or other

debt 5CClIred by the mOrtgage; and

(e) to ex lend the mortgage to secure any other

obl igation of the mortgagor. whether as principal or as

surety for any other pel"$On. in favour of the mortgagee.

(3) An amendmen t of a mortgage may DOt be ef·

fected afler the obligation $CCured by the regi5tered mortgage

has been SH tisfiN.

(4) Where any mortgages other than tbe mort·

gage that it is in lcnded 10 amend are entered in the regisler

of the shi p a D amend ment shall DO{ be noted unless the ron·

seot io writing of all the other mllrtgagtlCli whose inlCl'eStS

may be prejudiced by the amendment. is produced 10 the

regi.u rar.

(S) The C(lmeOI to an ameodmellt to • IDOr1pge

shall be lignirled by meaM of • de<:laration executed by !be

mortgagee in the presen~ of. and attested by a witness O£

willlM""'I ".

11. For the definition of "exempted 5hip" in lIIbsection (1) of

section 85 of the principal Act there shall be substituted the following

~ uexempted ship" meaDS either a $hip declared to be an

exempted ship by the Minisler in tenm of ICCtioo UA of lhil Act.

or a ship owned entirely by a C(lmpany or companies registered

under this Part of this Act. being a ship of nO( less than one thou·

III nd net tons engaged in the carriage of goods or passengen regis.

te=! under Part 1I of this Act and in respect of which the regima·

lion fen provided for in &eetioo 6 of this Act have been duly paid;".

Immediately alter section 85 of the principal ACI there lhall be

added the following new section 8SA

8SA. (1) The Min ister may with the concurnnce of the

Minister responsi ble for finance and subject 10 such C(lod itioos

as he may deem appropriate. declare to be an exempted Ihi p .

... ~ a ship of any net IOIlnage. ilTe'lpective of opcntions or trade in

which engaged. whicb but for JUCh lonnage. opcl1ltionl or

tr~de would otherwise satisfy all olher req uirements of an

exempted ship under subsection (1) of section 85 of this Act.

m A C(lmpany qualified to own Maltese ships

wishing to have a ship as is referred to in subsection (I) of

this section dcclared to be an exempted ship shall apply to the

Mi nister in writing 10 have the ship 50 declared, entering in

the application Ihe particulan mentioned in IUbsedion (2) of

section 8S of. Ihis Act; and shall DOIi ry the Minister in writing

from time to time of any altel1ltions in ~lICb particula ....

(3) The Minister shall ODCC evet)' year publish in

!he Guctte a lill of the declarations made in accordance with

subsection (I) of this seaion during tbe pLeading year ....

Se<:lion 86 of the principal ACI shall be amended as follows

(a ) in subsoclion m theroof flIT the words "contained in suI>

soction (2) of this section" there shall be sumtituted the words

"contained in snb5ec:tion (4 ) d this fleCtion";

(b) subsection (2) thereof shall be renumbered as subsection

(4 ). and for the woros "referred to in subsection (I) of this SCC1ioo"

there shall be substituted the words "rdernd to in l Ubsections (I)

and (2) of this scrtion"; and

(c) immedilttcly after 5ubsc:tion (1) thereof there shall be

added the following new subsection.&

" (2) (a) NOIwithstanding anything contained in the

Income Tax A ct. 1948. or in any enactment replacing tbat Act.

no tu under lbIt Act sha ll be payable by any person woo is

nol resident in Malta. on interesl or other income ~yablc to

him by any company regbtcred in Iefmf of Pan 1Il of thiI Act

in respect of any loe.n raised or other debt due by lIIeh company

for the purpose of acq uiring the ownership of an exempted

ship or for the pUIpOSC of the operation of an exempted ship

while she was an exempted ship

Provided that $UCh exemption from tax shall not

apply _

in respect of any year in which the said person

(i)

i$ engage:! in trade or business in Malta through a per-

manent establWunent situated therein;

Iii) unlC$s the ComznisI;ioner of Lnland Revenue i5

sat isfied that the pelSOll to whom the interalt or 0I.ber

income aOCl'llCli is the bmefjcial owner therool,

(b) For the plU)106e of this mbseetion. the ex~ion

"resident in Malta" has the 53.me mcaniq lIlI is uaigncd 10 it

by IieCtion 2 of the IDoomc Tax Act, 1948,

(3) The provisiOns of IieCtioo 1948 of the Ovil Code

and the provisions of the SIIJIIC rode limiliD& compound

interest. sball not apply in respect 10 any loan or any debt

referred in paragraph (a) of subseclioD (ll of thiJ 1IecIiOn.

wbem the loan is made 10. or the debt i5 due by any company

referred. 10 in that paragrapb. ".

Section 87 of the principal Act sball be amended as follows

for the marginal note thereto there shall be substituted

(a)

the following

~EJtemption from death and donation duties"; and

(b) in subsection (l) thereof f or the words --the SLlCCC$5ion

and Donation Duties Ordinance, or in any enactment replaciog

that Ordinance", "'under that Ordinance" and "under die said

Ordinance" there shall be substituted respectively the words "the

Death and Donation Duty Act. 1973, or in any ellllctment replaci ng

that Acf '. "uDder that Act" and "under the said Act",

Section &8 of the principal Act aba.Il be amended as follows

(a ) for the marginal note thereto there shall be substituted

the fnllowing

" Exemption from d uty on documents"; and

(b) fOl' the words "the Stamp DutieS Ordinance, or in any

enactment replacing that Ordinance, no Stamp dulY ,ball be pay-

able" there sllall be subslituted the WOl'ds "the DulY on Documenbl

A ct. 1981, Of" iD any enactment replaciog the Act. DO dulY

chargeable in acoordancc with that Act sha ll be payable",

In secliOD HI of the principal Act. the wordJ "and be shall

also be liable to imprisonment for a period DOt exceeding three months," _ l 1 I o l

in paragraph (a) therrol'. and the words " and he shall also be liable Iho principo.l

to imprisonment for a period DOt excoediog ten wec:u" in paragraph Cb)

thereof, shall be deleted,

11. Section 172 0( the principal Act shall be deleted.

19, Subsc<:lion (1) of ~lion 173 of lhe principal ACl shall he

ame nded as follows

(a) the words "(0 impri$Onment not exceedi ng foU! weeks

Hnd also, at the discretion 0( tbe court: ' in paragrapb (b) thereof

shall be deleted ;

(b) the words " to imprisonmen t roc a period !lOt exceed ing

twel~e weeks and also at the d i$crc tion of the court:' in paragraph

(c) thereor shall be deleted; and

le) for the word~ "imprisonment for a period not cxeoeding

tweh'c weeh" in paragraph (c) thereof, there shall be IOIIbsti tuttd

the words "forfeit a $Urn nOI uceeding twelve weeks' piiy".

20,

Section IS3 or the princi pal Act shall be rcpealed.

.21. In section 213 0( the principal Act, foc Lbe words "on 11th

June. 1960" there: sllall be substituted the words "on 1st November .

1914 and thc Protocol the~to signed in London on 17th FebrtUlt)',

1978 oc any other intetllational conve ntion or protocol relating 10

safety 0{ life Ht sea !alified or acceded to by the GO'Iemmenl of Malla ....

PaS5Cd by tbe House 0( Representative s at Sitting No. 358 of the 23rd June , '916.

JOIiN B UTIlGlEG

ACtin, S~okLr

C. MWSUD

Cle,k to the House of Represtfltoli('es

IWubblib' mi,· Toqillna tat-T.ghrif ,,",tilj . P>obl;"~ed by tIr~ Info ..... arion Diruion

LUrilja

),Iidough fi .I~ ... aI· (;'..", - Prl..rl.i Qf /loo Gowmooml Prl"""~ l'r<:;s

IHubartikolu (I) la' l..artikolu 173 ta' !-AIt priOCipaJi Jbaodu

jiai emenda! kif Acj;

la, H·klicm "jcbel pri~uncrija glial tlDim ta' mhllJ[ itjed minn

wtoll, fid -dilJc:relZjoni .al-qorti," fil-plngrafu

erba ' j;img.llat u

(bl litghu ghandhom ji;U mllusra

(hI il-Ir: liem " priau nerija g!la! tmien ta' mhWl itjed minD

tnu·;1 uhar u wkoll fid-diskrczzjoni ta l.qorti." ftJ-paragrsfu (f)

licgllu gllandhom iitu mllassl1l: U

(t) minflok il·kl icm "pOtunerija , tI.1 tmim ta' mbux itjed

minn Inax-i! ,timgll." fiI-pa l1lgnlfu (e) tiegllu gIIandhom jid?llu

J.ktiem "Ielf ta' somma fa' mhull itjed miDJI pap ta' tnax-il tlmgb",

lAIrtikolu 183 ta' '·AII principal; ghand u ji!i mhaa!!ar.

20.

Fl.artikol u 213 ta' I-All priocipali minflot il-kliem "fu..17 ta'

Ouniu, 1960" gIIandh om jidlllu \·k liem "fl-1 ts' Novembru. 1914 u

I.Protocol tsgll.ha ffirmst rLondra fls-17 ta' Frar, 1918 jew tull konven-

zjoni jew protocol itllor in temaujonsli dwsr lIal'$ien mlll·peralu fuq

il-ba1lar li I-Gvem ta' Malta ikuo irratifika jew stteda g1lalih ....

Mgtloddi mill·Kamra tad·[)epulsti fis-Seduta Nru. 358 tat-23 ta' Quoju, 11186.

J OllN B UTIlOIEO

A~ntSpeaku

C. M1FSUD

SkritJ4n ta/·Kamra tad-Deputati