ACT No. XLII of 2014 AN ACT to amend the Local Loans (Registered Stock and Securities) Ordinance, Cap. 161.

I assent.

M ARIE L OUISE

(L.S.)

C OLEIRO P RECA

President

19th December, 2014

ACT No. XLII of 2014

AN ACT to amend the Local Loans (Registered Stock and

Securities) Ordinance, Cap. 161.

BE IT ENACTED by the President, by and with the advice and

consent of the House of Representatives, in this present Parliament

assembled, and by the authority of the same, as follows:-

(1) The short title of this Act is the Local Loans

(Registered Stock and Securities) Ordinance (Amendment) Act, 2014,

and this Act shall be read and construed as one with the Local Loans

(Registered Stock and Securities) Ordinance, hereinafter referred to

as "the Ordinance".

(2) This Act shall come into force on such date as the Minister

responsible for finance may by notice in the Gazette establish.

Article 2 of the Ordinance shall be amended as follows

(a)

immediately after the definition "Accountant

General" there shall be added the following new definition

" "competent authority" means the Malta

Financial Services Authority established by the

Malta Financial Services Authority Act;"; and

(b) immediately after the definition " "registered stock"

or "stock" " there shall be added the following new definition

" "Resolution Authority" means the

authority established within the Malta

Financial Services Authority through the Malta

Financial Services Authority Act and which is

responsible for the resolution of credit

institutions and investment firms;".

In sub-article (1) of article 4 of the Ordinance, for the Amendment of

words "Whenever by any enactment authority is given to the Minister article

Ordinance.

responsible for finance to raise any sum of money by way of loan for

any purpose mentioned in that enactment" there shall be substituted

the words "Whenever under this Ordinance or by any enactment

authority is given to the Minister responsible for finance to raise any

sum of money by way of loan for any purpose mentioned in this

Ordinance or in that enactment".

Immediately after article 4 of the Ordinance, there shall be Addition of new

article 4A to the

added the following new article

Ordinance.

" The raising of

(1) The Minister responsible for

money by way

finance may, in pursuance of the Recovery

of loan.

and Resolution Regulations made under the

Banking Act and the Investment Services Act

(a)

further to a recommendation

by the competent authority in

consultation with the Resolution

Authority, raise a sum of money by way

of loan for the purpose of providing

precautionary recapitalisation measures

in favour of credit institutions in view of

preserving financial stability; or

(b) further to a resolution action

taken by the Resolution Authority in

consultation with the competent

authority, raise a sum of money by way

of loan for the purpose of providing

public backstop measures; or

(c)

in close cooperation with the

Resolution Authority, raise a sum of

money by way of loan for the purpose of

providing extraordinary public financial

support through financial stabilisation

tools.

(2) For the purpose of sub-article (1),

the Minister is hereby authorised to borrow

sums of money on such terms and subject to

such conditions as the said Minister may

approve under the provisions of this

Ordinance for such amount not exceeding any

amount which the House of Representatives

may from time to time by resolution

authorise.".

Passed by the House of Representatives at Sitting No. 223 of the

16th December, 2014.

A NĠLU F ARRUGIA

Speaker

R AYMOND S CICLUNA

Clerk of the House of Representatives