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cap_16 preamble—civilcode MT

CIVIL CODE (preamble—civilcode)

1,348 Articles / Provisions · Malta
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Table of Provisions (1,348)

Preamble Art. 1 Title. Art. 1A Persons. Art. 1B Extension of applicability to exclusive economic zone area or environment protection area. First Schedule Art. 2 Reciprocal duties of spouses. Second Schedule Art. 3 Duty to contribute towards needs of the family. Art. 3A Matrimonial home. Art. 3B Duty of spouse towards children. Third Schedule Art. 4 Surname to be used by spouse and children of the family. Art. 4A Transitory provisions in respect of article 4. Act No. XXIII of Fourth Schedule * Art. 5 Maintenance. Art. 6 Cessation of duty to supply maintenance. Art. 6A Disagreement between the spouses. Art. 7 Duties of parents towards children. Art. 8 Duties of children towards parents. Art. 9 Duties of spouses towards each other in the provision of maintenance. Art. 10 When son-in-law is not liable towards father-in-law or mother-in-law. Art. 11 Effect of death of spouse from whom affinity derived and of children of marriage creating affinity. Art. 12 Order of liability. Art. 13 Obligation in solidum. Art. 14 Where several persons claim maintenance. Art. 15 Siblings. Art. 16 Liability for maintenance by reason of consanguinity or affinity. Art. 17 When claim for reimbursement of maintenance can be made. Art. 18 When liability for maintenance devolves upon heirs. Art. 19 Definition of maintenance. Art. 20 Amount of maintenance. Art. 21 When person supplying maintenance becomes unable to continue to do so. Art. 22 Repayment of maintenance. Art. 23 Maintenance in kind. Art. 24 Donee primarily liable for maintenance. Art. 25 Maintenance pendente lite. Art. 26 Son not entitled to assignment from parents, in contemplation of marriage, etc. Art. 27 When obligation to supply maintenance ceases. Art. 28 Good grounds of opposition to marriage. Art. 29 Where marriage is contracted without previous publication of banns. Art. 30 Where marriage is celebrated without the rites and formalities preceding it. Art. 31 Art. 32 Grounds on which parents may refuse maintenance to children. Art. 33 Where maintenance may be refused on grounds of grievous injury. Art. 34 Exception. Art. 35 Obligation of cohabitation to cease on separation. Art. 36 How separation may be obtained. Art. 37 Personal separation. Art. 38 Adultery. Art. 39 Protection and Treatment Orders in lawsuit for personal separation. Art. 40 Excesses, cruelty, etc. Art. 41 Desertion. Art. 42 Reconciliation. Art. 43 Death of either of the spouses. Art. 44 Grounds on which both spouses may demand separation not to bar action by either of them. Art. 45 Discretion of court where defendant also might have demanded separation. Art. 46 Matrimonial home pendente lite. Art. 46A Maintenance pendente lite. Art. 47 Care of children. Art. 48 Consequences for spouse giving cause to separation. Art. 49 Where wife gives cause to separation. Art. 50 Where husband gives cause to separation. Art. 51 Power of court in certain cases. Art. 52 Discretion of court in certain cases. Art. 53 Preservation of rights or benefits by spouse obtaining separation. Art. 54 Obligation for maintenance. Art. 55 Cessation of community of acquests and community of residue under separate administration. Art. 55A Matrimonial home. Art. 56 Custody of the children after separation. Art. 56A Exclusion of custody. Art. 57 Right of spouses to watch over maintenance of children. Art. 58 Power of court to suspend action of separation. Art. 59 Separation by mutual consent. Art. 60 Directions as to the custody of the children. Art. 61 Agreement between spouses respecting the custody of the children. Art. 62 Surname of spouse after separation. Art. 62A Effects of separation in regard to third parties. Art. 63 Parties may put an end to separation. Art. 64 Voluntary cohabitation to operate as a reunion. Art. 65 Deed may take place after return to cohabitation. Art. 66 When effects of separation cease in regard to third parties. Art. 66A Divorce. Art. 66B Conditions required for divorce. Art. 66C Pronouncement of divorce. Art. 66D Divorce granted upon the application of one of the spouses. Art. 66E Consequences of fault of spouse. Art. 66F Conversion of separation proceedings into divorce proceedings. Art. 66G Duties of applicant’s advocate. Art. 66H Duties of respondent’s advocate. Art. 66I Powers of the court. Art. 66J Powers of the Minister. Art. 66K Inadmissible evidence. Art. 66L Effects of dissolution of marriage. Art. 66M The effects of remarriage. Art. 66N Jurisdiction of the court regarding divorce. Art. 67 Child born in wedlock. Art. 68 Presumption of conception during wedlock. Art. 69 When spouse may not repudiate child. Art. 70 When spouse may repudiate child. Art. 70A Natural parentage. Art. 71 Impotency. Art. 72 Adultery. Art. 73 Time within which to bring action for disavowal of child. Art. 74 Where any of the spouses dies before bringing action for disavowal. Art. 75 Against whom action is directed. Art. 76 Child born after the three-hundredth day of dissolution of marriage. Art. 77 Husband’s physical impossibility of cohabitation. Art. 77A Application for declaration of parenthood. Art. 77B Demand may also be exercised by spouse who gave birth. Art. 77C Sworn application filed within six months from the birth of the child. Art. 77D Examinations as referred to in article 70A. Art. 78 Registration of birth. Art. 79 Possession of status of child conceived or born in wedlock. Art. 80 Possession of status to be proved by series of facts. Art. 81 No person can claim a status contrary to that attributed to him by the act of birth. Art. 82 Where act of birth and possession of status are wanting. Art. 83 Evidence to the contrary. Art. 84 Action not barred by prescription. Art. 85 When action may be brought by heirs of child. Art. 86 Acknow- ledgement of children conceived or born out of wedlock. Art. 86A Judicial demand. Art. 87 How made. Art. 88 Effects. Art. 89 A child conceived and born out of wedlock of a spouse, born before or during a marriage. Art. 90 Parental authority over a child conceived and born out of wedlock. Art. 91 Appointment of tutor by court. Art. 92 Surname of a child conceived and born out of wedlock. Art. 93 Duty of parents and children conceived and born out of wedlock. Art. 94 Where paternity is declared by judgment of the court. Art. 95 Obligation of mother. Art. 96 Rights of parent to refuse maintenance where child refuses to follow directions of parent. Art. 97 Rights of parent to refuse maintenance where child refuses to live in house appointed by the parent. Art. 98 Duties of illegitimate child in respect of maintenance. Art. 99 Acknowledgement may be impeached by child. Art. 100 Any party interested may contest demand for declarator of paternity. Art. 100A Genetic proof. Art. 100B Parenthood in civil unions. Art. 101 Where presumption arises. Art. 102 Conditions for presumption. Art. 103 Effects of presumption as a consequence of subsequent marriage. Art. 104 Where acknowledge- ment or declarator takes place after marriage. Art. 105 Descendants of children presumed to be conceived or born in wedlock in consequence of subsequent marriage. Art. 106 The presumption in virtue of decree of court. Art. 107 Conditions for presumption in virtue of decree of the competent court. Art. 108 Power of court to refuse presumption. Art. 109 Registrar of court to cause registration of presumption. Art. 110 Art. 111 Effects of presumption in virtue of decree of court as between parent and child. Art. 112 Child may demand presumption after death of parent. Art. 113 Interpretation. Art. 114 Power to make adoption decrees. Art. 114A Agreement of open adoption. Art. 115 Restrictions on making of adoption decrees. Art. 116 Care and possession of persons to be adopted before adoption. Art. 117 Power to dispense with consent. Art. 118 Evidence of consent. Art. 118A Placing a minor in alternative care before being given up for adoption. Art. 119 Function of court as to adoption decrees. Art. 120 Curator. Art. 120A Children’s Advocate. Art. 121 Rights and duties. Art. 121A Service of adoption decree. Art. 122 Judgments, decrees or orders for payment of maintenance. Art. 123 Property rights. Art. 124 Adopted person to assume adopter’s surname. Art. 125 Registration of adoptions. Art. 126 Art. 127 Amendment of decree and rectification of registers. Art. 127A Right to information. Art. 128 Prohibition of certain payments. Art. 128A Prohibition of publication. Art. 128B False statements. Art. 128C Impersonation or false representation. Art. 128D Forged documents. Art. 128E Use of force. Art. 128F Removal of child. Art. 129 Regulations. Art. 130 Intercountry adoptions. Art. 130A Provisions of international treaty to prevail. Art. 131 Child subject to parental authority. Art. 132 Child to obey and not to abandon parental house. Art. 133 Power of court to authorize child to leave parental house. Art. 134 Power of the court to authorize child to be placed in alternative care. Art. 135 Parents to be representatives of the children. Art. 136 Parents’ power of administration. Art. 137 Acceptance of inheritance. Art. 138 Nullity of acts may only be set up by father, etc. Art. 139 Conflicting interests. Art. 140 Parents to render account of administration. Art. 141 Property of which the parents have usufruct. Art. 142 Property not subject to legal usufruct. Art. 143 Obligations to which usufruct of parents is subject. Art. 144 Cessation of usufruct. Art. 145 Where parents continue to enjoy property on cessation of usufruct. Art. 146 Death, etc. of one of the parents. Art. 147 Where parent remarries and continues to administer property. Art. 148 Applicability of provisions where mother is vested with paternal authority. Art. 149 Power of court to give directions notwithstanding other provisions. Art. 150 When parental authority ceases ipso jure. Art. 151 When court may reinstate parent in parental authority. Art. 152 Court may dispense with inventory. Art. 153 Art. 154 When parent may be deprived of parental authority. Art. 155 Usufruct of property of child to cease on forfeiture of parental authority. Art. 156 Where minor carries on trade. Art. 157 Minority. Art. 158 Where minor is subject to tutorship. Art. 159 Appointment of tutor. Art. 160 Persons competent to act as tutors. Art. 161 Where more than one tutor are appointed. Art. 162 Conflict of interest between minors and tutors. Art. 163 Persons not competent to hold the office of tutor. Art. 164 Judges and magistrates not eligible as tutors. Art. 165 Persons who may be excused from the office of tutor. Art. 166 Power of court to dispense tutors. Art. 167 Tutorial inventory. Art. 168 Power of court in regard to tutor. Art. 169 Suspension or removal of tutor. Art. 170 Curator ad ventrem. Art. 171 Remuneration to tutor. Art. 172 Duties of tutor. Art. 173 Power of court with respect to education of minor. Art. 174 Powers of tutor in case of bad conduct of minor. Art. 175 Duties of minor towards tutor. Art. 176 Acts not admitting of delay. Art. 177 Disposal of movable property. Art. 178 Precious articles, etc. Art. 179 Commercial establishments. Art. 180 Limitation of powers of tutor. Art. 181 Profitable investment of moneys. Art. 182 Administration. Art. 183 Rendering of accounts Art. 184 to person who was under tutorship. Art. 185 Interest. Art. 186 Limitation of actions. Art. 187 Nullity of acts performed by tutor. Art. 188 Age of majority. Art. 188A Persons subject to guardianship. Art. 188B Functions of guardian. Art. 188C Obligations in respect of acts of guardianship. Art. 188D Power to make regulations. Art. 189 Persons subject to interdiction. Art. 190 Deaf-mutes or blind. Art. 191 Interdiction of minor. Art. 192 Nullity of acts performed by person interdicted. Art. 193 Definition of “absentee”. Art. 194 Application for appointment of curator. Art. 195 Edict. Art. 196 Information respecting absentee. Art. 197 Inventory. Art. 198 Acts which do not admit of delay. Art. 199 Obligation of curator. Art. 200 Persons not competent to act as curators. Art. 201 Court may appoint more than one curator. Art. 202 Rendering of accounts. Art. 203 Curator to represent absentee. Art. 204 Where the absentee has left an attorney. Art. 205 Opening of wills. Art. 206 Edict. Art. 207 Where six months have elapsed without any information respecting absentee. Art. 208 Demand for provisional possession by heirs-at-law in default of institution of heir, Art. 209 or in default of secret or public will. Art. 210 Publication of edict. Art. 211 Rights of legatees, etc. Art. 212 Security. Art. 213 Other caution in default of security. Art. 214 Spouse may demand maintenance. Art. 215 Effects of provisional possession. Art. 216 Inventory of property. Art. 217 Powers of persons vested with provisional possession. Art. 218 Enjoyment of fruits. Art. 219 Prior or equal right to provisional possession. Art. 220 Return of absentee. Art. 221 Death of absentee. Art. 222 Action by persons having rights against absentee. Art. 223 Absolute possession. Art. 224 Cases where absolute possession takes place. Art. 225 Rights of persons placed in absolute possession of property. Art. 226 Return of absentee. Art. 227 Rights of children of absentee. Art. 228 Other rights. Art. 229 Claiming of rights on behalf of person not known to be living. Art. 230 Where a succession becomes open. Art. 231 Action to obtain inheritance. Art. 232 Fruits collected in good faith. Art. 233 Curatorship of minor children of absentee. Art. 234 Acts to be drawn up on the birth, marriage or death of any person. Art. 235 Exceptions. Art. 236 By whom acts are drawn up. Art. 237 Acts of marriage. Art. 238 Registers. Art. 239 Registrations in the office of Malta or Gozo. Art. 240 Progressive number, Art. 241 in respect of each description of acts. Art. 242 Drawing up of acts in clear characters. Art. 243 Applicability of s.242 to certificates of baptism or marriage. Art. 244 Births, marriages, unions of equivalent status, and deaths in foreign countries. Art. 245 How registrations are made. Art. 246 Declaration on last page of register book. Art. 247 When registration is to be entered. Art. 248 Correction of errors. Art. 249 Preservation of acts. Art. 250 Index. Art. 251 Acts and registers to be open to inspection. Art. 252 Probatory force of registers. Art. 253 Correction or cancellation of registrations. Art. 254 Notice to interested parties. Art. 255 Art. 256 Corrections, etc., ordered by court. Art. 257 Corrections ordered by Court of Revision. Art. 257A Action for an annotation in the indication of sex particulars appearing in an act of birth. Art. 257B Where court shall allow request. Art. 257C Changes in act of birth and effects thereof. Art. 257D Consequential correction of identity card. Art. 258 Correction of errors after declaration referred to in article 246. Art. 259 Holidays. Art. 260 Inspection of registers by Court of Revision of Notarial Acts. Art. 261 Duties of court. Art. 262 Persons refusing to give information concerning particulars, Art. 263 or making false declaration, Art. 264 or disobeying any order. Art. 265 Where offender after expiating punishment persists in refusing to answer. Art. 266 Saving as regards other punishments for more serious offences. Art. 267 Where several persons are bound, performance by one discharges the others. Art. 268 Fees. Art. 269 Adopted Persons Register. Art. 270 Functions of a diplomatic or consular representative in relation to acts of civil status. Art. 271 Power to make regulations. Art. 272 Persons bound to give notice of birth of child. Art. 273 How notice is given. Art. 274 Verbal or written notice. Art. 275 Where notice is given personally by any one of the parents. Art. 276 or by any other person. Art. 277 Duties of officer, in default of any one of the parents. Art. 278 Particulars of act of birth. Art. 278A Registration of names. Art. 279 Children conceived and born out of wedlock. Art. 280 When the person who gave birth to the child is married. Art. 281 Particulars respecting the person who gave birth to a child conceived and born out of wedlock. Art. 282 Signing of act. Art. 283 Still-born children. Art. 284 Officer may require to see the child. Art. 285 Children born at sea. Art. 285A Children born at sea on board a vessel that is not registered in any place. Art. 286 Duty of the parent who did not give birth, or, in default, of the parent who gave birth. Art. 287 Foundlings. Art. 288 Acts of birth to be delivered for registration. Art. 289 Where, after registration, paternity of a child conceived or born outside wedlock is established. Art. 290 Adoption or presumption that a person was conceived or born in wedlock. Art. 291 Documents to be produced. Art. 292 Presumption in virtue of subsequent marriage. Art. 292A Surname of child. Art. 293 Particulars of act of marriage. Art. 294 Delivery of act of marriage. Art. 295 Entry of decisions, declarations and prohibitions affecting marriage. Art. 295A Act of civil union. Art. 296 Notice of death by physician, Art. 297 by members of family. Art. 298 Certificate of person presumed dead. Art. 299 Certificate of absent person presumed dead. Art. 300 Return of absentee after final certificate of death. Art. 301 Particulars of act of death. Art. 302 Powers of officer to collect information. Art. 303 Duties of officers of hospitals, etc. Art. 304 Deaths at sea. Art. 305 Acts of death to be delivered for registration. Art. 306 Exercise of functions assigned to the Director. Art. 307 Movable or immovable property. Art. 308 Immovable property. Art. 309 When certain things become movable. Art. 310 Things immovable by reason of the object to which they refer. Art. 311 Definition of “immovable thing”. Art. 312 Movable property. Art. 313 Materials deriving from demolition of buildings. Art. 314 Ships, etc. Art. 315 Shares or interests in commercial companies, etc. Art. 316 Definition of “movable property or things”, “movable effects” or “movable substance”. Art. 317 Definition of “movables”. Art. 318 Definition of “furniture”. Art. 319 Definition of “a house with all that it contains”. Art. 320 Ownership. Art. 321 No person may be compelled to give up his property. Art. 322 Owner of thing has right to reclaim it from any possessor. Art. 323 Ownership of land carries with it ownership of what is above and under it. Art. 324 Constructions, etc., over or under the land belong to owner. Art. 325 Owner may compel neighbour to fix boundaries of adjoining tenements. Art. 326 Owner may enclose his tenement. Art. 327 Public and vacant property. Art. 328 Definition of “usufruct”. Art. 329 Where usufruct includes things which cannot be used without being consumed. Art. 330 Usufruct is constituted by law or by man. Art. 331 Art. 332 Fruits belong to usufructuary. Art. 333 Natural, industrial and civil fruits. Art. 334 Natural and industrial fruits hanging from branches or standing upon roots. Art. 335 Civil fruits deemed to be earned day by day. Art. 336 Fine. Art. 337 Usufruct of a life annuity. Art. 338 Where usufruct includes things subject to gradual deterioration by use. Art. 339 Fruit trees. Art. 340 Usufructuary may assign enjoyment of his right. Art. 341 Lease of property to remain operative. Art. 342 Usufructuary may sell fruits that are pending. Art. 343 Usufructuary enjoys rights of easement. Art. 344 Usufructuary enjoys such stone- quarries as are open. Art. 345 Usufructuary has no right to treasure- trove. Art. 346 Owner may not prejudice rights of usufructuary. Art. 347 Usufructuary cannot claim compensation for improvements. Art. 348 Usufructuary entitled to real actions competent to owner. Art. 349 Usufructuary to take things in the condition in which they are at the time the usufruct vests in him. Art. 350 Making up of inventory. Art. 351 How inventory is made up. Art. 352 Security to be given by usufructuary. Art. 353 Persons who are not bound to give security. Art. 354 Time within which owner may demand security. Art. 355 Where usufructuary fails to give security. Art. 356 Administrator to sell movables, etc. Art. 357 Administrator may deviate from rule laid down in art. Art. 358 Power of court where usufructuary fails to find security. Art. 359 Duty of administrator to render account. Art. 360 Removal of administrator. Art. 361 Usufructuary may take over administration. Art. 362 Fruits due to usufructuary. Art. 363 Repairs of property subject to usufruct. Art. 364 Extraordinary repairs. Art. 365 Reimbursement of expenses incurred by usufructuary for repairs which are at charge of owner. Art. 366 Where owner consents to carry out extraordinary repairs. Art. 367 Where part of building falls down through age, etc. Art. 368 Usufructuary cannot prevent owner from carrying out repairs. Art. 369 Expenses to be borne by usufructuary, Art. 370 Usufructuary to pay ground-rent, etc. Art. 371 Usufructuary of particular tenements not to pay charges on such tenements. Art. 372 Usufructuary of estate to pay maintenance allowances, etc. Art. 373 Costs of lawsuits concerning usufruct, etc. Art. 374 Encroachment on property held in usufruct. Art. 375 Where subject of usufruct is not a herd. Art. 376 Where subject of usufruct is a herd. Art. 377 Insurance of ship subject to usufruct. Art. 378 Termination of usufruct. Art. 379 Termination of usufruct by wrongful use thereof. Art. 380 Duration of usufruct granted to body-corporate, Art. 381 or until a third party reaches a given age, Art. 382 or in favour of two or more persons conjointly. Art. 383 Sale of thing subject to usufruct. Art. 384 Creditors of usufructuary can have waiver of usufruct declared null. Art. 385 Where a part only of subject of usufruct perishes. Art. 386 Rights of usufructuary in respect of soil or materials of a building that falls down. Art. 387 Where subject of usufruct is a ship beyond repair. Art. 388 Usufruct of annuity or debt not to terminate on repayment of capital. Art. 389 How use and habitation are acquired and lost. Art. 390 Rights of use and habitation to be created by public deed. Art. 391 Where extent of right of use or habitation is not fixed in deed. Art. 392 Definition of “use”. Art. 393 Definition of “habitation”. Art. 394 Definition of “family”. Art. 395 Inventory and security. Art. 396 Grantee to act as bonus paterfamilias. Art. 397 Liabilities of grantee. Art. 398 Where fruits do not exceed quantity required by person having right of use. Art. 399 Rights of use and habitation may not be assigned, etc. Art. 400 Definition of “easement”. Art. 401 How easements are created. Art. 402 Easements created for purposes of public or private utility. Art. 403 Duties of owners of tenements. Art. 404 Springs of water. Art. 405 Water running through public road. Art. 406 Where water is required for the use of man, etc. Art. 407 Party wall. Art. 408 How to be built. Art. 409 Presumption of ownership of party-wall. Art. 410 Party-wall between courtyards, gardens or fields. Art. 411 Repairs to common wall. Art. 412 Where common wall supports building which owner wishes to demolish. Art. 413 Right of support. Art. 414 Raising of common wall. Art. 415 Where common wall is not in condition to stand additional height. Art. 416 Party raising common wall, liable for damage to neighbour. Art. 417 Neighbour may acquire co- ownership of additional height of common wall. Art. 418 Owner may make common a wall contiguous to his tenement. Art. 419 Works to or on common wall, or deposit of manure, etc., against common wall. Art. 420 Repairs to walls separating courtyards, etc. Art. 421 Construction or repair of party-wall between two tenements having different level. Art. 422 Where neighbour is unwilling to contribute to expense of construction or repair to wall. Art. 423 Where several storeys or parts of building belong to different owners. Art. 424 Old easements in regard to new common wall. Art. 425 Openings in party- walls. Art. 426 Owners of storeys may make balconies, etc., in external wall. Art. 427 Raising of party- wall if building has stairs leading to roof. Art. 428 Neighbours to avoid causing damage to party- wall. Art. 429 Ditch between two tenements is presumed to be common to both owners. Art. 430 Indications that ditch is not common. Art. 431 Where ditch serves for the drainage of the lands of one owner only. Art. 432 Repair of common ditch. Art. 433 Trees existing on boundary-line between two tenements. Art. 434 Construction of walls, etc. on boundary-line of tenements. Art. 435 Space to be left when not building on boundary-line. Art. 436 Exception. Art. 437 Planting of trees, etc. Art. 438 Branches of trees overhanging adjoining tenement. Art. 439 Digging of wells, etc. Art. 440 Damage consequent on excavations. Art. 441 Distance of sink- pipes or water- pipes. Art. 442 Where cistern extends under tenement of neighbour. Art. 443 Distance of windows, etc., from party-wall. Art. 444 Distance of ovens from party-wall. Art. 445 Construction of roofs. Art. 446 Access to and passage over tenements. Art. 447 Tenement having no outlet to public road. Art. 448 Tenement becoming enclosed on all sides. Art. 449 Discontinuance of right of way. Art. 450 Right of watercourse. Art. 451 Action for indemnity subject to prescription. Art. 452 Contribution towards necessary repairs of channels. Art. 453 Where enjoyment of way or of watercourse can be had in or over two or more tenements. Art. 454 Creation of easements. Art. 455 Continuous or discontinuous, apparent or non- apparent easements. Art. 456 Affirmative or negative easements. Art. 457 Creation of continuous and apparent easements. Art. 458 Title to result from public deed. Registration thereof. Art. 459 Creation of easements over tenements subject to usufruct. Art. 460 Easement granted by co-owner. Art. 461 Where co-owner granting easement becomes sole owner of tenement. Art. 462 Where easement is acquired by prescription. Art. 463 Prescription with regard to affirmative or negative easements. Art. 464 Where easement is in respect of water flowing from neighbouring tenement. Art. 465 Where emphyteuta, etc., suffers exercise of easement. Art. 466 Art. 467 Art. 468 When easement is said to be created by “the disposition of the owner of two tenements”. Art. 469 Easements that cannot be acquired by prescription. Art. 470 Principal easement to include secondary easements. Art. 471 Right to carry out works necessary for enjoyment and preservation of easement. Art. 472 When owner of servient tenement is bound to carry out repairs. Art. 473 Where dominant tenement is divided. Art. 474 Owner of servient tenement cannot do anything injurious to easement. Art. 475 Owner of dominant tenement may not render easement more burdensome. Art. 476 Doubt as to extent of easement. Art. 477 Duty of person granting water from a spring or channel. Art. 478 Owner of tenement subject to easement in respect of flow of water may freely use such water. Art. 479 Easements are extinguished when they can no longer be exercised, Art. 480 by merger or unity of possession, Art. 481 by non-user. Art. 482 Running of periods of non-user. Art. 483 Prescription in favour of third party in possession. Art. 484 Prescription as to manner of use of easement. Art. 485 Interruption of prescription by a co-owner. Art. 486 Suspension or interruption of prescription with regard to a co- owner. Art. 487 Cessation of easement on partition. Art. 488 Easements acquired in favour of dotal or emphyteutical tenements. Art. 489 Definition of community of property. Art. 490 Share of co- owners. Art. 491 Right of co-owner to make use of common property. Art. 492 Contribution towards expenses. Art. 493 No alterations to be made without consent of co- owners. Art. 494 Power of court to appoint administrator of common property. Art. 495 Each co-owner has full ownership of his share. Art. 495A Where co-owners fail to agree in respect of a sale of a thing held in common. Art. 495B Art. 496 Each co-owner may demand partition of common property. Art. 497 Power of court to order dissolution of community notwithstanding prohibition of testator, etc. Art. 498 Partition may be demanded even if co-owner enjoyed separately a portion of the property. Art. 499 Partition of immovable property to be made by public deed. Art. 500 Manner and form of partition. Art. 501 Valuation of property and making up of shares. Art. 502 Right of co-owner to have his share in kind. Art. 503 Right of co-owner possessing immovables adjacent to those in community. Art. 504 Dismemberment of tenements and creation of easements to be avoided. Art. 505 Payment of a sum of money in case of inequality of shares. Art. 506 Rent-charge in lieu of sum of money. Art. 507 Other cases where rent-charge may be imposed. Art. 508 Limitation of amount of rent- charge. Art. 509 Formation of shares. Art. 510 Drawing of lots. Art. 511 When partition is to be made with the assistance of the judge or magistrate. Art. 512 Delivery of documents relating to the subjects of the partition. Art. 513 Effects of partition. Art. 514 Supplement in money and supplementary partition. Art. 515 Sale by licitation Art. 516 may be demanded by any of the co- owners. Art. 517 Strangers may be invited to bid. Art. 518 No formalities required where licitation takes place with the consent of all co- owners, Art. 519 even, in certain cases where one of the co-owners is subject to tutorship. Art. 520 Licitation of immovable property, etc., where any of the co-owners is subject to tutorship, etc. Art. 521 Licitation under authority of court, to be carried out as a judicial sale. Art. 522 Applicability of certain provisions relating to sale of immovables. Art. 523 Licitation of common property subject to entail. Sec.1 of Ordinance VI of 1895, incorporated. Art. 524 Definition of possession. Art. 525 A person is presumed to possess on his own behalf. Art. 526 Facultative acts, etc., cannot found possession. Art. 527 Violent or clandestine acts. Art. 528 When intermediate possession may be presumed. Art. 529 Actual possession without title does not raise presumption of former possession. Art. 530 Possession by universal or singular successor. Art. 531 Possessor in good faith. Art. 532 Good faith to be presumed. Art. 533 Rules to be observed with regard to rights and obligations arising from possession. Art. 534 Action to secure possessor in his rights in case of molestation. Art. 535 Action for restoration of possession in case of spoliation. Art. 536 Restoration of possession does not bar other possessory actions. Art. 537 Issues as to possession in matters concerning easements. Art. 538 Action to restrain continuation of new work where damage is feared. Art. 539 Action competent to person apprehending damage from any building, tree, etc. Art. 540 Right of possessor in good faith with regard to fruits of thing possessed. Art. 541 Possessor in bad faith. Art. 542 Right of possessor in good faith as to expenses. Art. 543 Possessor in bad faith. Art. 544 Rights of possessor as to decorative expenses. Art. 545 Definition of necessary, useful and decorative expenses. Art. 546 Possession of thing obtained by theft or other offence. Art. 547 Set-off of fruits against expenses. Art. 548 Where possessor in good or bad faith is not bound to restore fruits of meliorations. Art. 549 Expenses for the production or preservation of fruits. Art. 550 Right of retention competent to possessor. Art. 551 Possessor in good faith to make good damage. Art. 552 If the thing possessed be an inheritance. Art. 553 Where possessor is deemed to have derived a benefit. Art. 554 Possessor in good faith not bound to restore value of things given, etc. Art. 555 Applicability of ss.552, 553 and 554 to possessor of other universitas rerum. Art. 556 Possessor in bad faith to restore things wrongfully occupied by him. Art. 557 Possessor in bad faith answerable for damage caused to thing. Art. 558 Possession of movables by third parties in good faith. Art. 559 Owner of thing lost or stolen may recover it. Art. 560 Acquisition and transmission of property by succession, etc. Art. 561 Definition of occupancy. Art. 562 Rights of owners of swarms of bees. Art. 563 Treasure trove. Art. 564 Lost property. Art. 565 Things thrown or falling into the sea. Art. 566 Definition of accession. Art. 567 Ownership of natural, industrial or civil fruits. Art. 568 Constructions, plantations, or works made with materials belonging to others. Art. 569 Constructions, etc., made by third party in possession with his own materials, Art. 570 with materials belonging to others. Art. 571 Occupation in good faith of a portion of a contiguous tenement. Art. 572 Right of accession in regard to movable things. Art. 573 Where two things belonging to different owners have been united so as to form a whole. Art. 574 Which part is to be considered as principal. Art. 575 Where accessory is much more precious than principal. Art. 576 When thing is considered as principal by reason of its value or bulk. Art. 577 Where artificer employs materials not belonging to him, Art. 578 or materials belonging partly to him and partly to others. Art. 579 Where workmanship is much more valuable than materials. Art. 580 Commixture of several materials. Art. 581 Where materials belonging to one owner can be considered as the principal subject. Art. 582 Owners of materials may demand sale by auction of new subject of property. Art. 583 Rights of owner of materials employed without his concurrence. Art. 584 Liability for damages. Art. 585 Definition of inheritance. Art. 586 How inheritance is disposed of. Art. 587 Testamentary instruments made before 11th February 1870. Art. 588 Definition of will. Art. 589 Dispositions by universal or singular title. Art. 590 Definition thereof. Art. 591 Heir. Art. 592 Will unica charta. Art. 593 Where a spouse revokes a will unica charta. Art. 594 Effects of revocation. Art. 595 Will unica charta admissible only between the spouses. Art. 596 Capacity of disposing or receiving by will. Art. 597 Testamentary incapacity. Art. 598 Persons under eighteen can only make remuneratory dispositions. Art. 599 Wills made by persons subject to incapacity are null even though incapacity ceases before testator’s death. Art. 600 Those not yet conceived cannot receive by will. Art. 601 Those not born viable cannot receive by will. Art. 602 All children may receive by will. Art. 603 Portion which surviving spouse may receive by will where deceased leaves children or descendants. Art. 604 Portion which may be received by husband or wife in case of second or subsequent marriage. Art. 605 Persons unworthy of receiving by will. Art. 606 Rehabilitation. Art. 607 Unworthy heir or legatee to restore fruits. Art. 608 Descendants of person unworthy are entitled to the reserved portion. Art. 609 Incapacity of tutors or curators to receive by will. Art. 610 Incapacity of notary receiving a public will to benefit under the same. Art. 611 Incapacity of members of monastic orders, etc. Art. 612 Disposition in favour of incapable persons is null even if made through intermediaries. Art. 613 Persons deemed to be intermediaries. Art. 614 Property which may be disposed of by will. Art. 615 Reserved portion. Art. 616 Reserved portion due to children. Art. 617 “Children” to include descendants. Art. 618 Rules for determining the number of children for regulating the reserved portion. Art. 619 Legitim due to ascendants. Art. 620 Reserved portion to be free from burdens or conditions. Art. 621 Where subject of testamentary disposition is a usufruct or life annuity. Art. 622 Disherison. Art. 623 Grounds on which a descendant may be disinherited. Art. 624 Grounds on which an ascendant may be disinherited. Art. 625 Grounds of disherison to be proved by party alleging disherison. Art. 626 Rights of children of persons disinherited. Art. 627 Where person disinherited predeceases testator. Art. 628 Maintenance of person disinherited. Art. 629 Right to reserved portion when cause of disherison is not stated or proved. Art. 630 Disherison on the ground of prodigality. Art. 631 Right of surviving spouse, if there is issue. Art. 632 Right of surviving spouse, if there is no issue. Art. 633 Right of habitation. Art. 634 Partition between heirs and surviving spouse. Art. 635 Use of contents of matrimonial home. Art. 636 Definition of furniture. Art. 637 Limitations of right of use. Art. 638 Cases where surviving spouse cannot claim rights. Art. 639 Application of articles 633 and 635 in cases of personal separation or divorce. Art. 640 Art. 641 Art. 642 Art. 643 Art. 644 Art. 645 Art. 646 Art. 647 Testamentary dispositions exceeding disposable portion, liable to abatement. Art. 648 How abatement is determined. Art. 649 Subject of donation perished before death of donor not to be included in the bulk. Art. 650 When value of donations exceeds or is equal to disposable portion. Art. 651 Proportionate abatement. Art. 652 Declaration by testator that a disposition shall have effect in preference to others. Art. 653 Separation of subject of legacy. Art. 654 Will is either public or secret. Art. 655 Form of public will. Art. 656 Form of secret will. Art. 657 Paper containing secret will to be closed and sealed. Art. 658 Delivery of secret wills. Art. 659 Duties of notary receiving a secret will. Art. 660 Notary to present secret will to court of voluntary jurisdiction. Art. 661 Penalty to be inflicted on notary contravening the provisions of s.660. Art. 662 Note of particulars prescribed by Code of Org. and Civ. Proc. to be equivalent to act of delivery. Art. 663 Secret will by illiterate person. Art. 664 Duties of judge or magistrate assisting an illiterate person. Art. 665 Formalities to be observed by judge or magistrate assisting an illiterate person. Art. 666 Any judge or magistrate even temporarily present in Malta or Gozo may assist illiterate person. Art. 667 Contents of will to be kept secret. Art. 668 Secret will by a deaf-mute. Art. 669 Secret will be person totally deaf. Art. 670 Persons incompetent as witnesses in public wills. Art. 671 Testator may withdraw secret will. Art. 672 Nullity of will. Art. 673 Wills in places where communications are interrupted. Art. 674 When such will becomes void. Art. 675 Person receiving such will to deposit it in court of voluntary jurisdiction. Art. 676 Wills made at sea. Art. 677 By whom such wills are to be signed. Art. 678 Entry relating to the receipt of any such will to be made in log-book and muster-roll. Art. 679 Duty of master, etc., on return to Malta to present will to the court of voluntary jurisdiction. Art. 680 Will made at sea to have effect only if testator dies at sea, etc. Art. 681 Nullity of dispositions made in favour of person receiving will, etc. Art. 682 Effect of wills made outside Malta. Art. 683 Institution of heir. Art. 684 Where only a portion of inheritance is disposed of. Art. 685 Where reason constituting sole inducement of disposition is false. Art. 686 Wills per relationem ad schedulam are void. Art. 687 Disposition in favour of person uncertain. Art. 688 Disposition in favour of person or body corporate to be designated by heir or third party. Art. 689 Disposition in favour of next of kin. Art. 690 Disposition in favour of the poor. Art. 691 Disposition in favour of testator’s soul. Art. 692 Inadmissibility of evidence to show that the words of the will are contrary to the intention of the testator. Art. 693 Fiduciary dispositions. Art. 694 Erroneous designation of heir, legatee or thing disposed of. Art. 695 Disposition left entirely to the discretion of the heir. Art. 696 Legacy of thing belonging to others. Art. 697 Legacy of thing belonging to heir or legatee. Art. 698 Where a part only of the thing bequeathed belongs to the testator. Art. 699 Legacy of an indeterminate thing. Art. 700 Where thing bequeathed is not found to exist in estate of testator. Art. 701 Legacy of thing or quantity to be taken from a specified place. Art. 702 Legacy of a thing belonging to legatee. Art. 703 Legacy of a debt due to testator. Art. 704 Legacy of a thing or sum as due by testator to legatee. Art. 705 Legacy of debt to creditor. Art. 706 Legatum liberationis to include only debts due at the time of the will. Art. 707 Legacy of maintenance. Art. 708 Legacy of immovable increased by subsequent acquisitions. Art. 709 Pre-legacy to heir. Art. 710 Dispositions may be pure or conditional. Art. 711 Impossible conditions, etc. Art. 712 Condition in restraint of marriage. Art. 713 Condition restraining heir from availing himself of benefit of inventory. Art. 714 Limitation of commencement or cessation of institution of heir. Art. 715 Disposition on condition of mutual benefit, is null. Art. 716 Disposition depending upon an uncertain event. Art. 717 Condition suspending the execution of the disposition. Art. 718 Where heir or legatee is bound to give security for fulfilment of condition. Art. 719 Person charged with delivery of conditional legacy must give security. Art. 720 Appointment of administrator in certain cases. Art. 721 Right to receive pure and simple legacy, transmissible to heirs of legatee. Art. 722 Rule as to selection of thing, where legacy is in respect of an indeterminate thing. Art. 723 Where a right of selection is left to the legatee. Art. 724 Right of selection in alternative legacies. Art. 725 When right of selection passes to heir of heir or legatee. Art. 726 Legatee to demand of heir delivery of thing bequeathed. Art. 727 Fruits of or interest on legacy. Art. 728 When fruits or interest accrue in favour of legatee, immediately on death of testator. Art. 729 Legacy of life annuity or pension. Art. 730 When subject of legacy is a determinate quantity to be delivered or paid at fixed periods. Art. 731 Thing bequeathed to be delivered with accessories. Art. 732 Where thing bequeathed is charged with a right of usufruct, etc. Art. 733 Expense for delivery of legacy. Art. 734 By whom legacy is to be paid. Art. 735 Where one of the heirs is particularly charged with the payment of the legacy. Art. 736 Testator may declare pension or usufruct not subject to attachment. Art. 737 Right of accretion. Art. 738 Institution or legacy deemed to be made conjointly if it depends upon one and the same disposition, etc. Art. 739 Legacy is also deemed to be made conjointly if thing bequeathed is not divisible. Art. 740 Co-heir or co- legatee may not refuse accrued share unless he renounces original share. Art. 741 Vesting of vacant portion of inheritance or legacy, when accretion does not take place. Art. 742 Where usufruct is bequeathed to two or more persons conjointly. Art. 743 Alienation by testator of thing bequeathed operates as a revocation of legacy. Art. 744 Where thing bequeathed perishes. Art. 745 Effect of testamentary disposition in case of predecease of person benefited. Art. 746 Where heir or a legatee renounces disposition. Art. 747 Testator can make provision for the existence or birth of children, etc. Art. 748 Where children or descendants are passed over. Art. 749 Right of children born after the making of the will. Art. 750 Preterition of children of testator of whose existence he was aware does not void disposition. Art. 751 Substitutio vulgaris. Art. 752 Art. 753 Substitution of several persons in the place of one, or vice versa. Art. 754 Where in the substitution clause only one of the two contingencies is stated. Art. 755 Performance of obligations by substitutes. Art. 756 Art. 757 Prohibition of entails. Art. 758 Provision restraining heir or legatee from alienating or from disposing by will, to be ineffectual. Art. 759 Where usufruct is left to one person and ownership to another. Art. 760 Disposition under condition that cannot be fulfilled before death of heir or legatee. Art. 761 When annuities or other burdens in favour of more persons successively are permitted. Art. 762 Appointment of executors by testator. Art. 763 Who may be executor. Art. 764 Minor. Art. 765 Executor cannot intermeddle with estate before confirmation. Art. 766 Recognizance to be entered into by executor. Art. 767 Inventory. Art. 768 Executor cannot be exempted from rendering account. Art. 769 Powers of executor pending procedure in confirmation. Art. 770 Fee payable to executor. Art. 771 Power of executor to sell property. Art. 772 Heir may prevent sale. Art. 773 Office of executor not to descend to heirs. Art. 774 More executors to act conjointly. Art. 775 Expenses incurred by executor to be borne by estate. Art. 776 Executor may renounce office. Art. 777 Power of court when two or more executors are appointed. Art. 778 Death, etc. of only executor - nominate or of all executors - nominate. Art. 779 Opening of secret will. Art. 780 Applicability of s.779 to cases of long absence of testator, etc. Art. 781 Power of revoking will cannot be waived. Art. 782 Will may be revoked by subsequent will or notarial instrument. Art. 783 Implied revocation of secret will. Art. 784 Will if null cannot revoke previous will. Art. 785 Revival of revoked disposition. Art. 786 Implied revocation by subsequent contrary dispositions. Art. 787 Revocation to subsist, although subsequent will lapses. Art. 788 When intestate succession takes place. Art. 789 Persons succeeding ab intestato. Art. 790 Rules regarding succession among relations. Art. 791 How proximity or relationship is determined. Art. 792 Direct line. Art. 793 Direct line may be descending or ascending. Art. 794 Computation of degrees in the direct line. Art. 795 Computation of degrees in collateral line. Art. 796 Persons incapable or unworthy of succeeding ab intestato. Art. 797 Other persons so incapable. Art. 798 Applicability of arts. 606 and 607. Art. 799 Children or descendants of persons excluded as unworthy. Art. 800 Members of monastic orders. Art. 801 Rule of representation, Art. 802 in the descending direct line. Art. 803 Representation does not take place between ascendants. Art. 804 Representation in collateral line. Art. 805 Partition per stirpes and per capita. Art. 806 No representation of persons who are alive. Art. 807 Representation of person whose estate has been renounced. Art. 808 Where deceased is survived by descendants and spouse. Art. 809 Where deceased is survived by descendants but not by spouse. Art. 810 Where the deceased is not survived by descendants but is survived by spouse. Art. 811 Succession by children and descendants. Art. 812 When deceased leaves no descendants nor a spouse. Art. 813 Direct collaterals. Art. 814 Succession by other collaterals. Art. 815 Where persons conceived and born out of wedlock succeed with certain other persons. Art. 816 Rights of succession competent to the Government of Malta. Art. 817 Right of succession of illegitimate child, legitimated by decree of court, etc., Art. 818 if not legitimated by decree of court, etc. Art. 819 Rule as to right of succession of illegitimate children, legitimated or acknowledged. Art. 820 Collation by illegitimate children. Art. 821 Legitimate children of predeceased illegitimate child. Art. 822 Illegitimate children have no right over property of relations of their parents. Art. 823 Art. 824 Art. 825 Art. 826 Art. 827 Art. 828 Art. 829 Art. 830 Art. 831 Succession opens at death. Art. 832 Where people die in a common calamity. Art. 833 Rule as to presumption of survivorship as regards person of same sex, Art. 834 as regards persons of different sex. Art. 835 Succession also opens on taking of religious vows. Art. 836 Seisin of heirs. Art. 837 Where a part only of the inheritance is disposed of. Art. 838 Where person claiming rights over property of inheritance, has taken possession thereof. Art. 839 Share due to person conceived and born out of wedlock may be paid in kind. Art. 840 When demand for delivery of possession is to be made to the court. Art. 841 Security to be given by illegitimate child or by spouse before declaration of delivery of possession. Art. 842 When surety may be dispensed with. Art. 843 No surety required where value of inheritance does not exceed fifty liri. Art. 844 Issue of banns. Art. 845 Limitation of action for demanding inheritance, etc. Art. 846 No person bound to accept inheritance. Art. 847 Inheritance may be accepted unconditionally or under benefit of inventory. Art. 848 Persons subject to tutorship, etc. Art. 849 Retrospective effect of acceptance of inheritance. Art. 850 Acceptance may be express or implied. Art. 851 Effects of judicial declaration as to status of heir. Art. 852 Acts not implying acceptance. Art. 853 Acts implying acceptance. Art. 854 When renunciation of one co-heir in favour of other co- heirs does not imply acceptance of inheritance. Art. 855 Where heirs do not agree as to accepting or renouncing an inheritance. Art. 856 Right of acceptance transmissible to heirs. Art. 857 Rights of such heirs. Art. 858 When acceptance may be impeached. Art. 859 Period of limitation as to right of accepting vacant inheritance. Art. 860 Renunciation is not presumed. Art. 861 Heir renouncing testate succession forfeits right to intestate succession. Art. 862 Heir renouncing inheritance may claim legacy. Art. 863 Devolution of share of person renouncing, in intestate succession. Art. 864 No person may take as representative of person renouncing. Art. 865 Devolution of share of person renouncing, in testate succession. Art. 866 Creditors of renouncing heir may accept in his stead. Art. 867 Renouncing heir may still accept vacant inheritance. Art. 868 Heir may be compelled to declare whether he accepts or refuses. Art. 869 Heir having actual possession cannot renounce inheritance after lapse of three months. Art. 870 Heir misappropriating property of inheritance forfeits rights of renouncing inheritance. Art. 871 Renunciation of inheritance of a person living, is null. Art. 872 Renunciation of inheritance by person entering into a monastic order, to be absolute, Art. 873 except with regard to the power of reserving a life annuity. Art. 874 Renunciation by minor on entering into a religious order. Art. 875 Effect of renunciation. Art. 876 Annulment of vows brings about the annulment of the renunciation. Art. 877 Nullity of testamentary disposition restraining heir from entering upon inventory. Art. 878 Declaration of intention to assume status of heir under benefit of inventory. Art. 879 Declaration to be preceded or followed by inventory. Art. 880 Disagreement among heirs as to entering upon inventory. Art. 881 Heir having actual possession of property of inheritance to make up inventory within three months. Art. 882 Art. 883 Time for deliberating after inventory is completed. Art. 884 Running of time with regard to heir not having actual possession of property of inheritance. Art. 885 Minors and persons interdicted. Art. 886 Pending inventory, heir is considered as curator of inheritance. Art. 887 Heir may obtain leave to sell hereditary property which cannot be preserved. Art. 888 Expenses incurred before renunciation. Art. 889 Fraudulent omission of property in inventory. Art. 890 Effect of inventory. Art. 891 Duties of heir who enters upon inventory. Art. 892 Extent of liability of heir who enters upon inventory. Art. 893 Time within which to render account. Art. 894 When heir entitled to reserved portion neglects to make up inventory. Art. 895 Security to be given by heir who enters upon inventory. Art. 896 Payment to certain creditors before legatees. Art. 897 Payment to other creditors and legatees. Art. 898 Payment of registered debts to be made in order of priority. Art. 899 Remedy available to creditor prejudiced by payment made by heir. Art. 900 Right of creditors appearing after the whole of the estate has been paid out. Art. 901 Exercise of hypothecary action. Art. 902 Expenses of inventory and accounts. Art. 903 When inheritance is deemed to be vacant. Art. 904 Duties of curator. Art. 905 Provisions of s.904 not to apply to curators on the rota. Art. 906 Partition of inheritance may be demanded at any time. Art. 907 Rules governing partition. Art. 908 Appointment of person to make up shares, etc. Art. 909 Presumption of the pre-existence of property in case of a second or subsequent marriage. Art. 910 Collation due by co-heirs. Art. 911 Formation of equal shares. Art. 912 Assignee of portion of inheritance may be excluded from partition by co- heirs. Art. 913 Children or descendants are bound to collate in favour of other children or descendants. Art. 914 Exemption from collation. Art. 915 Where donation exceeds disposable portion, the excess is subject to collation. Art. 916 Heir renouncing succession may retain donation. Art. 917 Where donee is not the heir presumptive at the time of the donation. Art. 918 Donations to descendant of heir are exempt from collation. Art. 919 Descendant succeeding in his own right not bound to collate donations made to ascendant. Art. 920 Donations made to spouse of heir. Art. 921 Collation due to inheritance of donor. Art. 922 What is subject to collation. Art. 923 Things left by will not subject to collation. Art. 924 Maintenance expenses, etc., not subject to collation. Art. 925 Profits derived from agreements with deceased. Art. 926 Special partnerships entered into between deceased and heir. Art. 927 Immovable property which perishes accidentally not liable to collation. Art. 928 Fruits, etc., of things liable to collation. Art. 929 Pensions or annuities paid or due, not subject to collation. Art. 930 Legatees or creditors cannot demand collation. Art. 931 How collation is made. Art. 932 Cost of improvements. Art. 933 Where donee alienates immovable property. Art. 934 Where donation exceeds disposable portion. Art. 935 Right of retention. Art. 936 Collation of movables. Art. 937 Collation of money. Art. 938 Where heir, etc., entitled to reserved portion demands abatement of gifts made to others. Art. 939 How co-heirs contribute to payment of debts. Art. 940 Each heir is bound ratably with respect to creditors. Art. 941 Extent of right of relief exercisable against co-heirs by heir who pays the whole debt. Art. 942 Insolvency of co-heir. Art. 943 Separation of estates. Art. 944 Legatee not liable for hereditary debts. Art. 945 Legatee discharging debt is subrogated to the rights of creditor. Art. 946 After partition, co- heir is deemed to be sole and direct successor to property comprised in his share. Art. 947 Co-heirs are mutually warrantors in respect of molestations and evictions. Art. 948 Warranty may be excluded. Art. 949 Effects of warranty. Art. 950 Warranty in regard to debts. Art. 951 Warranty in regard to solvency of debtor of annuity limited to five years. Art. 952 No warranty against insolvency which occurs after partition. Art. 953 Parents may divide their property among their children. Art. 954 Partition may be made by will or by an instrument inter vivos. Art. 955 Property not included in partition to be divided according to law. Art. 956 Partition is null if not made among all the children. Art. 957 When partition may be impeached. Art. 958 Nullity of partition does not invalidate dispositions. Art. 958A Interpretation. Art. 958B Applicability. Art. 958C Competent court. Art. 958D Competent authorities for the issue of a European Certificate of Succession. Art. 958E Competence. Art. 958F Registration of application. Art. 958G Interested parties. Art. 958H Examination of application. Art. 958I Preservation and registration of application and Certificate. Art. 958J Certified copies of the European Certificate of Succession. Art. 958K Challenging of decision of issuing authority. Art. 958L Trusts and applicable rules. Art. 958M Limitation on rights of enjoyment of benefit. Art. 958N Persons unworthy of receiving under trusts. Art. 958O Application of rules to donations and settlements. Art. 958P Trust property subject to collation. Art. 958Q Trustees and testamentary executors. Art. 958R Property in Malta, Maltese or foreign trust, foreign domiciliary. Art. 958S Non-applicability of right of redemption. Art. 958T Limitation of applicability of articles 1000 and Art. 958U Non-applicability of article 1483. Art. 959 Sources of obligations. Art. 960 Definition of contract. Art. 961 Contract may be bilateral or unilateral, Art. 962 onerous or gratuitous, Art. 963 commutative, Art. 964 aleatory. Art. 965 Rules governing contracts. Art. 966 Requisites of contracts. Art. 967 Capacity of parties. Art. 968 Persons not having the use of reason. Art. 969 Persons who have not attained the age of fourteen years. Art. 970 Art. 971 if not subject to parental authority. Art. 971A Art. 972 Persons interdicted. Art. 973 Nullity may not be set up by person capable of contracting. Art. 974 Consent. Art. 975 Error of law. Art. 976 Error of fact. Art. 977 Violence. Art. 978 When consent is considered extorted by violence. Art. 979 Where violence is practised on spouse, etc., of contracting party. Art. 980 Reverential fear. Art. 981 Fraud. Art. 982 Subject-matter of contracts. Art. 983 Subject of obligation must be a determinate thing. Art. 984 Future things may be the subject of contracts. Art. 985 Impossible or illegal things. Art. 986 Champerty. Art. 987 Want or illegality of consideration. Art. 988 Consideration may be proved although it is not stated. Art. 989 Where stated consideration is false. Art. 990 Unlawful consideration. Art. 991 Where consideration is unlawful in regard to obligee or to both the obligor and the obligee. Art. 992 Effects of contracts. Art. 993 Contracts to be carried out in good faith. Art. 994 Effects of contract where thing alienated is certain and determinate. Art. 995 Where thing alienated is uncertain or indeterminate. Art. 996 Effects of contracts in regard to third parties. Art. 997 Where a movable thing is promised, by successive agreements, to two or more persons. Art. 998 Contracting party is presumed to stipulate for himself, his heirs, etc. Art. 999 Person contracting in his own name cannot bind any one but himself, Art. 1000 When person may stipulate for the benefit of a third party. Art. 1001 Contracts to be operative only as between contracting parties. Art. 1002 No interpretation where meaning of words is clear. Art. 1003 Where literal meaning differs from intention of parties. Art. 1004 When clause is susceptible of two meanings. Art. 1005 Words susceptible of two meanings. Art. 1006 Ambiguity. Art. 1007 Customary clauses. Art. 1008 Clauses to be interpreted with reference to one another. Art. 1009 Doubtful cases. Art. 1010 General terms. Art. 1011 When a case is specified for the purpose of explaining an agreement. Art. 1012 Definition. Art. 1013 Duties of negotiorum gestor. Art. 1014 Death of interested party before completion of business. Art. 1015 Standard of diligence. Art. 1016 Cases where higher standard of diligence is required. Art. 1017 Power of court to mitigate damages. Art. 1018 Duties of party interested. Art. 1019 Where agent believed that he was managing his own affairs. Art. 1020 Agent not entitled to indemnity if he acts against prohibition of interested party. Art. 1021 Restoration of thing received without being due. Art. 1022 Where debt is paid by mistake. Art. 1023 Restoration of capital and interest if payee was in bad faith. Art. 1024 Restoration of thing unduly received. Art. 1025 Where thing unduly received is no longer in the possession of the party receiving it. Art. 1026 Applicability of ss.540 to 545 and Art. 1027 Limitation of action for recovery of what has been unduly given. Art. 1028 Payer by mistake cannot recover from third party. Art. 1028A Enrichment to the detriment of others. Actio de in rem verso. Art. 1028B Where the actio de in rem verso may not be exercised. Art. 1029 Fortuitous damage. Art. 1030 Proper use of one’s right. Art. 1031 Liability for damage caused through one’s fault. Art. 1032 When a person is deemed to be in fault. Art. 1033 Culpable negligence. Art. 1033A Eżenzjoni f’każ ta’ salvataġġ jew assistenza. Miżjud: XXIX.2020.5. Art. 1034 Art. 1035 Damage caused by children under nine years, etc. Art. 1036 Power of court to order damage to be made good out of property of minor, etc. Art. 1037 Employment of incompetent person. Art. 1038 Persons undertaking work without necessary skill. Art. 1039 Liability of hotel- keepers. Art. 1040 Liability of owner of animal. Art. 1041 Liability of owner of building. Art. 1042 Rule as to liability of occupier of building in case of damage caused by the fall of a thing. Art. 1043 Intoxication. Art. 1044 Aiders or abettors. Art. 1045 Measure of damages. Art. 1046 Damages to heirs of deceased party. Art. 1047 Where damage consists in depriving person of use of his own money. Art. 1048 Right of relief against party causing damage. Art. 1049 Joint and several liability where damage is caused maliciously. Art. 1050 Where part of damage caused by each of several persons cannot be ascertained. Art. 1051 Contribution to damage by party injured. Art. 1051A Civil remedies in cases of corruption. Art. 1052 Definition of conditional obligation. Art. 1053 Casual and potestative conditions. Art. 1054 Condition contrary to morality, etc. Art. 1055 Effect of condition to forbear to do an impossible thing, etc. Art. 1056 Obligation is null if contracted under condition depending solely upon obligor. Art. 1057 Condition to be fulfilled according to the intention of the parties. Art. 1058 Where obligation is contracted on condition that an event shall happen within a certain time. Art. 1059 Where obligation is contracted on condition that an event shall not happen within a certain time. Art. 1060 When a condition is deemed to be fulfilled. Art. 1061 Retroactive effect of condition. Art. 1062 Creditor may secure his rights before condition is fulfilled. Art. 1063 Definition of suspensive condition. Art. 1064 Where thing perishes or deteriorates before fulfilment of condition. Art. 1065 Where obligation is contingent on event which has already taken place. Art. 1066 Definition of resolutive condition. Art. 1067 Effect of express resolutive condition. Art. 1068 Resolutive condition is implied in bilateral contracts. Art. 1069 Rights of creditor in an undischarged obligation. Art. 1070 Time for performance of obligation. Art. 1071 Time does not suspend obligation. Art. 1072 Thing may not be claimed before expiration of time. Art. 1073 Time to be presumed stipulated in favour of debtor. Art. 1074 Computation of time. Art. 1075 Dies a quo not to be computed. Art. 1076 Public holidays. Art. 1077 Where no time is fixed for performance of obligation. Art. 1078 Where time for performance of obligation is left to the will of the debtor. Art. 1079 When debtor cannot claim benefit of time. Art. 1080 How alternative obligation is discharged. Art. 1081 Option granted to debtor. Art. 1082 Where party entitled to option fails to exercise it. Art. 1083 Where one of two things promised could not form the subject of an obligation, Art. 1084 or perishes. Art. 1085 When right of option is competent to creditor. Art. 1086 Where both things perish without the fault of the debtor. Art. 1087 Where alternative obligation includes more than two things. Art. 1088 Definition of potestative obligation. Art. 1089 Obligation not to be presumed to be in solidum. Art. 1090 Obligation in solidum in favour of several creditors. Art. 1091 Option of debtor to pay any one of the joint and several creditors. Art. 1092 Interruption and suspension of prescription. Art. 1093 Effect of remission by one of the joint and several creditors. Art. 1094 Joint and several debtors. Art. 1095 Obligation may be joint and several even though debtors are differently bound. Art. 1096 Creditor may sue any of the joint and several debtors. Art. 1097 Judicial demand against one of the debtors in solidum does not bar a similar demand against any of the others. Art. 1098 Demand for payment of interest. Art. 1099 Pleas which may be set up by joint and several debtors. Art. 1100 Interruption of prescription. Art. 1101 Acknowledge- ment of debt by one of the heirs of the joint and several debtors. Art. 1102 Where thing perishes through the fault of one or more of the debtors in solidum. Art. 1103 Where one of the debtors becomes the heir of the creditor, etc. Art. 1104 Where creditor consents to the division of the debt in favour of one of the debtors. Art. 1105 Where creditor receives part- payments. Art. 1106 Debtors among themselves bound ratably. Art. 1107 Co-debtor discharging debt may only claim from the other co- debtors their respective shares. Art. 1108 Where creditor discharges one of the co-debtors from his joint and several liability. Art. 1109 Where subject- matter of joint and several liability concerns one of the co-debtors only. Art. 1110 Divisible obligation. Art. 1111 Indivisible obligation. Art. 1112 Joint and several obligation does not imply indivisibility. Art. 1113 How divisible obligation is performed as between creditor and debtor. Art. 1114 When rule of divisibility does not apply to heirs of debtor. Art. 1115 Liability of obligors under an indivisible obligation. Art. 1116 Rights of heirs of creditor in an indivisible obligation. Art. 1117 Right of co-heir of debtor to demand that the other co- heirs be made parties to the suit. Art. 1118 Definition of penalty clause. Art. 1119 Effects of nullity of principal obligation and of penalty clause. Art. 1120 Penalty to represent compensation for damages. Art. 1121 When penalty becomes due. Art. 1122 Abatement or mitigation of penalty. Art. 1123 Penalty clause in indivisible obligation. Art. 1124 Penalty clause in divisible obligation. Art. 1124A Fiduciary obligations. Art. 1124B Dealings with third parties aware of fiduciary obligations. Art. 1124C Property subject to fiduciary obligations and ownership. Art. 1124D Retirement of a fiduciary and appointment of his successor. Art. 1124E Fiduciary action. Art. 1124F Prescription. Art. 1124G Fiduciary obligations towards a purpose. Art. 1124H Obligations of the beneficiary towards the fiduciary. Art. 1124I Directions from the Court. Art. 1124J Applicability of the provisions of this Title. Art. 1125 Liability in case of non-fulfilment of obligation. Art. 1126 Obligation to give a thing includes obligation to preserve and deliver. Art. 1127 Non-performance of an obligation to do. Art. 1128 Infringement of obligation to forbear to do. Art. 1129 Rights of creditor where obligation to forbear to do is infringed. Art. 1130 When debtor is in default. Art. 1131 Liability for damages when time for performance of an obligation to give or to do expires. Art. 1132 Degree of diligence required in the performance of an obligation. Art. 1133 Liability for damages in case of non-performance. Art. 1134 No liability where non-performance was due to irresistible force. Art. 1135 Damages payable to creditor. Art. 1136 Debtor liable only for damages which were or could have been foreseen. Art. 1137 Damages remote and contingent not recoverable. Art. 1138 Where agreement fixes sum payable as damages. Art. 1139 Damages payable where obligation consists in the payment of a sum of money. Art. 1140 Interest is due without necessity of proof of loss. Art. 1141 From what day interest is due. Art. 1142 Compound interest. Art. 1143 Actio debitor debitoris mei. Art. 1144 Actio Pauliana. Art. 1145 How obligations are extinguished. Art. 1146 Definition of payment. Art. 1147 Payment implies debt. Art. 1148 By whom payment may be made. Art. 1149 Creditor cannot refuse payment by third party. Art. 1150 Where payment transfers the property of the thing. Art. 1151 Annulment of payment made by person incapable of alienating. Art. 1152 To whom payment must be made. Art. 1153 Payment made in good faith to person in possession of debt. Art. 1154 When payment made to creditor incapable of receiving it , is valid. Art. 1155 Payment by debtor in contravention of garnishee order , etc. Art. 1156 Creditor cannot be compelled to receive a different thing , or a part- payment. Art. 1157 Delivery of a certain and determinate thing. Art. 1158 Delivery of thing determinate only as to its species. Art. 1159 Where payment is to be made. Art. 1160 Presumption of payment in the case of rent , interest or other periodical payments. Art. 1161 Presumption of payment in other cases. Art. 1162 Inapplicability of presumption. Art. 1163 Expenses relating to payment. Art. 1164 Where payer is subrogated to rights of creditor. Art. 1165 Subrogation by agreement. Art. 1166 Subrogation by operation of law. Art. 1167 Subrogation takes place both against sureties and debtors. Art. 1168 Debtor may apply payment to the discharge of a particular debt. Art. 1169 Debt bearing interest. Art. 1170 Where debtor accepts receipt containing appropriation made by creditor. Art. 1171 Rules as to appropriation of payments. Art. 1172 Rules as to appropriation where creditor obtains payment by causing sale of thing charged with debt. Art. 1173 When debtor can deposit sum or thing due. Art. 1174 Deposit to be preceded by refusal of valid tender. Art. 1175 Conditions of a valid tender. Art. 1176 When deposit may be withdrawn. Art. 1177 Where debtor has obtained a judgement declaring deposit to be valid. Art. 1178 Where creditor consents to withdrawal of deposit declared valid. Art. 1178A Deposit of money due where a judgment orders payment to multiple creditors. Art. 1179 When novation takes place. Art. 1180 By whom novation can be made. Art. 1181 No novation , unless former obligation is extinguished. Art. 1182 Acceptance of securities in consideration of a former debt does not produce novation. Art. 1183 When delegation does not operate as novation. Art. 1184 Insolvency of person delegated. Art. 1185 Privileges , etc. securing former debt not to extend to substituted debt. Art. 1186 Property of new debtor not affected by original privileges , etc. Art. 1187 Novation between creditor and one of the joint and several debtors. Art. 1188 Effects thereof. Art. 1189 Pleas which may be set up by the delegated debtor against his new creditor. Art. 1190 Remission in case of joint and several debts. Art. 1191 Effects of remission in regard to the surety. Art. 1192 Creditor to deduct from debt anything received from surety as consideration for release. Art. 1193 When surrender of instrument creating debt implies release. Art. 1194 Absence of reservation of a debt in an acquittance relating to another debt. Art. 1195 Surrender of pledge. Art. 1196 When set-off takes place. Art. 1197 Between which debts set-off takes place. Art. 1198 Time for payment not to bar set-off. Art. 1199 When set-off does not take place. Art. 1200 Surety can plead set-off. Art. 1201 Where debtor accepts assignment of debt. Art. 1202 Where same person owes several debts which may be set off. Art. 1203 Set-off does not affect rights of third party. Art. 1204 Payment of a debt which was extinguished by a set-off. Art. 1205 When merger takes place. Art. 1206 Merger benefits surety. Art. 1207 When loss of thing extinguishes obligation. Art. 1208 Debtor to assign rights of action to creditor. Art. 1209 Effects of rescission. Art. 1210 Rescission to operate against third parties. Art. 1211 When rescission is demanded in respect of a part only of the instrument. Art. 1212 Grounds of rescission. Art. 1213 Rescission on the ground of lesion. Art. 1214 Minors. Art. 1215 Other cases of lesion in the case of minors. Art. 1216 Where both contracting parties are minors. Art. 1217 Where minor declares that he is of age. Art. 1218 Cases where minors cannot demand rescission , except where such right would be competent to majors. Art. 1219 Where minors are considered as being of age. Art. 1220 Disability to contract in cases of tort or quasi-tort. Art. 1221 Extent of reimbursement by minors and persons interdicted. Art. 1222 Limitation of rescissory action on the ground of violence , error , etc. Art. 1223 Day from which period of limitation begins to run. Art. 1224 Limitation of rescissory action in other cases. Art. 1225 Right of action passes to heirs. Art. 1226 Plea of nullity. Art. 1227 Affirmation or ratification of obligation. Art. 1228 When affirmation or ratification implies waiver of rescissory action. Art. 1229 Affirmation or ratification may take place tacitly. Art. 1230 Affirmation or ratification of act which the law expressly annuls for want of formalities. Art. 1231 Affirmation or ratification of donation or testamentary disposition. Art. 1232 Proof of obligations and their extinguishment. Art. 1233 Transactions which must be expressed in public deed or private writing. Art. 1234 Presumption of law. Art. 1235 Admissibility or otherwise of evidence to rebut presumption. Art. 1236 Marriage contracts. Art. 1237 Parties may enter into other agreements not contrary to morals , etc. Art. 1238 Certain agreements may not be made. Art. 1239 Agreements may not be made in derogation of legal order of succession. Art. 1240 Validity of certain promises made in marriage contracts. Art. 1241 Marriage agreements by minor. Art. 1242 Person under disability to contract. Art. 1243 Variation of marriage contract before marriage. Art. 1244 Post-nuptial agreements. Art. 1245 Marriage contracts to be expressed in public deed , Art. 1246 and registered in Public Registry. Art. 1247 Notary to draw up note of reference. Art. 1248 Abolition of institutes.

Statutory Text (1,348 Articles)

Laws of Malta — Chapter 16 — CIVIL CODE

CHAPTER 16

CIVIL CODE

To amend and consolidate the Laws relating to Persons and the Laws

respecting rights relative of Things and the different modes of acquiring

and transmitting such rights.

11th February, 1870

22nd January, 1874

This Code consolidates the following

ORDINANCE VII of 1868 (as amended by Ordinances: I of 1870, IV of

1907, XIV of 1913, II and V of 1920; Acts: III of 1930, XLII of 1933;

Ordinances: XL of 1935, XIX of 1937, III of 1938, XXXIX of 1939 and XXV

of 1940); ORDINANCE 1 of 1873 (as amended by Ordinances: I of 1908,

XIII of 1932; Act XXI of 1933; Ordinances: XX of 1934, XVIII of 1938 and

XXII of 1939); Article I of ORDINANCE VI of 1895 and Articles 2, 4, 5, 6,

7 (1) and 9 of ORDINANCE XIII of 1895.

This Code was subsequently amended by Ordinances: II and VII of

1944; Acts: XXVIII of 1948, XI of 1952; Ordinances: IV and XXXIX of

1961, XXI and XXV of 1962; Legal Notice 4 of 1963; Act XXVIII of 1963;

Legal Notice 46 of 1965; Acts: XXXI of 1965, II and XXXI of 1966, XVI of

1967, VI of 1968, VI and XXXVIII of 1972, XI and XXV of 1973; Legal

Notice 54 of 1973; Acts: XLVI of 1973, I and LIV of 1974, XXXVII of 1975;

Legal Notice 93 of 1975; Act LVIII of 1975; Legal Notice 148 of 1975; Act

LV of 1975; Legal Notice 46 of 1976; Acts: XXII, XXVII and XXXIX of

1976; Legal Notice 43 of 1977; Acts: VII and XI of 1977, XXII and XXX of

1979, XXX, XLIX and L of 1981, VII and IX of 1982, VI and XIII of 1983,

XX of 1984, VII of 1985, XII and XXXI of 1986; Legal Notice 161 of 1989;

Acts: VIII of 1990, XVII of 1991, IX of 1992, V and XXI of 1993, III and

XXVIII of 1994, and IV, XXIV and XXX of 1995; Legal Notice 212 of 1997;

Acts IX and XXII of 2000, XX and XXXI of 2002, III, VI, IX, XIII and XVIII

of 2004; Legal Notice 355 of 2004; Acts XI, XIII, XX and XXII of 2005, V

of 2006, VIII, XIII and XVIII of 2007; Legal Notice 407 of 2007; Acts III,

IV and XV of 2008, III, X, XII and XV of 2009, V, VIII, XX and XXIII of

2010, XIV and XXIV of 2011, and II, XV, XIX and XXIV of 2012; Legal

Notices 218, 311, 426 and 465 of 2012; Acts IV and VII of 2013, and IX

and XXV of 2014; Legal Notice 92 of 2015; Acts XI, XII, XVI, XX and XXX

of 2015, IV, XIII, XIV, XXIV, XXV, LII of 2016, VIII of 2017, XV of 2017,

X VII of 2017 , XXIII of 2017, VIII of 2018, XIII of 2018. , XXVII of 2018

XXXI of 2018, XXXII of 2018 , XXIV of 2018, XXXVI of 2018 and XLIII of

2018 XVII and XXV and XXVIII of 2019 and XXVII, XXIX, XLVII,

XXXIX, LXI and LXV of 2020, XXIV, XXV of 2021 and XXXVII of 2021 and

Legal Notice 339 of 2019 and 38 and 40 of 2021 and 212 of 2023 and Act

VI and XVII and XXXV of 2023 and XVII, XXVIII, XX, XXV and XXX of

2024, XXII and XXXIV of 2025 and III of 2026.

CIVIL CODE

Laws of Malta — Chapter 16 — CIVIL CODE

The title of this Code is the Civil Code.

BOOK FIRST

OF PERSONS

PRELIMINARY

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Persons may either be natural persons or legal persons.

(2) When used in any law the term "person" shall include both

natural persons as well as legal persons, unless the context

otherwise requires.

(3) Natural persons are regulated by Title I to Title VIII of

Book First of this Code.

(4) Legal persons are regulated by the Second Schedule to this

Code.

(5) Legal persons enjoy all rights and powers pertaining to

natural persons except those excluded by their very nature, by their

constitutive act or by an express provision of law.

Laws of Malta — Chapter 16 — CIVIL CODE

The provisions of this Code and of any subsidiary legislation

made thereunder shall also apply, in accordance with the provisions of

the 1982 United Nations Convention on the Law of the Sea as ratified

by the Law of the Sea (Ratification) Act, to an exclusive economic

zone area or an environment protection area as defined in the

Exclusive Economic Zone Act. Any artificial island, installation,

structure, equipment or device therein shall, solely for the purposes of

this Code and any subsidiary legislation made thereunder, be treated as

if they were situated in Malta itself.

Title I

O F THE R IGHTS AND D UTIES A RISING FROM M ARRIAGE

Sub-title 1

O F THE MUTUAL R IGHTS AND D UTIES OF S POUSES

Laws of Malta — Chapter 16 — CIVIL CODE

PART I

Amended by

FEES

XIII.1932.3.

Substituted by

XXVIII.1948.2.

Amended by

Fees to be levied under section 268

XXI.1962.19;

XXXI.1965.23;

€

VI.1972.3;

XXX.1979.5;

1. For the registration of an act of birth .................

2.60

L.N. 161 of 1989.

Substituted by

2. For the registration of an act of marriage or a

L.N. 212 of 1997.

civil union ...................................................................

2.60

Amended by

L.N. 355 of 2004;

N o t e : For the payment of the fees respectively

VIII.2007.27.

established at paragraphs, 1 and 2, the parents of the

Substituted by

child, in the case of a birth, and the spouses, in the case of

L.N. 407 of 2007.

Amended by

a marriage, are liable in solidum.

XIII.2007.13;

XXIV.2011.99;

3. For every certificate attesting that no entry exists

XV.2012.27;

in Civil Status Records in respect of a particular

XIX.2012.16;

individual including the fee for the search ......................

5.15

L.N. 311 of 2012;

XXV.2014.5;

4. (a) For every extract from a registered act of

L.N. 92 of 2015;

birth, marriage, civil union, death or entry in the Adopted

XII.2015.6;

XVII.2019.41.

Persons Register in accordance with Forms I, K, KK, M,

LXV.2020.28;

O in Part II of the First Schedule to this Code ...................

2.60

L.N. 40 of 2021.

(b) For every extract from a registered act of

birth, marriage, death or entry in the Adopted Persons

Register in accordance with Forms J, L, P in Part II of the

First Schedule to this Code ............................................

2.60

(c) For every certificate containing a copy in

full of a registration of birth, marriage, civil union or

death with such notes as may be appended thereto ..........

10.25

(d) For every extract from a registered act of

birth, marriage, civil union, death or entry in the Adopted

Persons Register ordered form the Public Registry

electronic website ........................................................

2.50

(e) For every certificate containing a copy in

full of a registration of birth, marriage, civil union or

death with such notes as may be appended thereto

ordered from the Public Registry electronic website ........

9.95

5. For an entry in the Adopted Persons Register .....

2.60

6.* For every certificate reproducing all acts of civil

status against any individual .........................................

13.20

7. For every submission of Form TT, UU, V, WW,

XX, and Y as indicated in Part II of the First Schedule to

this Code..........................................................................

8. For every submission of Form V which has been

submitted in terms of article 278A(2)(c) of this Code, as

indicated in Part II of the F ir st S chedule to this

Code..................................................................................

free

* Not yet in force .

PART II

FORMS

FORM A

(Article 195)

EDICT FOR INFORMATION RESPECTING AN

ABSENT PERSON

REGISTRY OF THE CIVIL COURT

(VOLUNTARY JURISDICTION SECTION)

................... 20

Whereas................. has, by an application filed on the ..................

applied for the appointment of a curator to ....................., (or, as

the case may be, for the opening of the secret will of ..................,

or for a declaration that the public will of ................. be accessible,

or that the applicant himself be put into provisional possession of

the property of .......................) who is alleged to have since the

................... ceased to appear in Malta, without any news of him

having been received.

Whosoever has any news of the existence of the said ................. ,

is required to communicate it to the undersigned Registrar of the

Civil Court (Voluntary Jurisdiction Section), for the information of

the said Court, within one month from the day of the publication of

this present edict in the Government Gazette.

By order of the Court,

Registrar.

FORM B

(Article 254)

NOTICE

REGISTRY OF THE CIVIL COURT, FIRST HALL

.................. 20

Whereas ................. has filed a sworn application demanding

correction of the registration (or the cancellation of the registration

or the registration) of his birth, or of his marriage, or of the death

of .................

Whosoever may have an interest therein, and wishes to oppose

that demand, is hereby called upon to do so, by means of a note to

be filed in the above-mentioned Registry within fifteen days from

the day of the publication of this present notice in the Government

Gazette.

Those who, within the aforesaid time, shall have filed such note,

shall be notified, by the service of a copy of the said sworn

application, of the day which will be appointed for the hearing of

the cause.

By order of the Court,

Registrar.

FORM BB

(Article 281)

Registry of the Court of Revision of

Notarial Acts

......................... 20 ......

Whereas AB has given notice of his birth/the birth of CD, a child

whose mother and maternal grandparents are dead/cannot be found,

claiming that he/the said CD was born on

...........................at........................ and that his mother is

.................... a daughter of .................... born at ........................ on

Whoever may have an interest to oppose such registration, is

hereby called upon to do so, by means of a note filed in the above-

mentioned Registry within fifteen days from the date of publication

of this notice.

Anybody who within the aforesaid time shall have filed such

note, shall be notified of the day appointed for hearing by the Court

which shall hear on oath every person in possession of information

on the matter.

By order of the Court,

Registrar

CIVIL CODE

FORM C

Amended by

(Article 278)

XXI.1993.7.

Substituted by

XXIII.2017.90;

L.N. 339 of 2019.

LXV.2020.29.

FORM D

Amended by

(Article 287)

XXXI.1933.7.

Substituted by

XXIII.2017.90;

L.N. 339 of 2019.

LXV.2020.29.

CIVIL CODE

FORM E

Substituted by

(Article 293)

L.N. 339 of 2019;

LXV.2020.29.

FORM EE

Added by

IX. 2014.14.

(Article 295A)

Substituted by

L.N. 339 of 2019;

LXV.2020.29.

CIVIL CODE

FORM F

Substituted by

L.N. 339 of 2019.

(Article 296)

FORM G

Substituted by

L.N. 339 of 2019;

(Article 301)

Amended by

XXVII.2020.40.

Substituted by

L.N. 38 of 2021.

CIVIL CODE

FORM H

Added by

Ord XXI.1962.19.

(Article 125)

Substituted by

XXIII.2017.90;

L.N. 339 of 2019;

LXV.2020.29.

FORM I

Added

XXXI.1965.23.

(Article 251)

Substituted by

Extract of Act of Birth registered before 1st March

XXI.1993.85.

Substituted by

XXIII.2017.90;

L.N. 339 of 2019;

LXV.2020.29.

CIVIL CODE

FORM I

Added

L.N. 339 of 2019.

(Article 251)

Substituted by

Extract of Act of Birth registered as from

LXV.2020.29.

1st March 2005

FORM J

Added by

XXXI.1965.23.

(Article 251)

Substituted by

XXI.1993.85;

L.N. 339 of 2019;

LXV.2020.29.

CIVIL CODE

FORM K

Substituted by

XXIII.2017.90;

(Article 251)

L.N. 339 of 2019;

Extract of Act of Marriage - Application for

Publication of Banns prior to 1st September 2017

Added by

FORM K

L.N. 339 of 2019.

[Article 251]

Substituted by

LXV.2020.29

CIVIL CODE

Added by

FORM KK

XXV.2014.5.

[Article 251]

Substituted by

L.N. 339 of 2019;

Extract of Act of Marriage - Application for Publication

LXV.2020.29

of Banns as from 1st September 2017

Added by

FORM L

XXXI.1965.23.

(Article 251)

Amended by

XXI.1993.85.

Extract of Act of Marriage - Application for Publication

Substituted by

of Banns prior to 1st September 2017

XXIII.2017.90;

L.N. 339 of 2019.

CIVIL CODE

Added by

FORM L

L.N. 339 of 2019.

(Article 251)

Substituted by

LXV.2020.29.

FORM M

Added by

XXXI.1965.23.

(Article 251)

Deleted by article 85 of Act XXI of 1993.

FORM N

Added by

XXXI.1965.23.

(Article 251)

Deleted by article 85 of Act XXI of 1993.

CIVIL CODE

FORM 0

Added by

XXXI. 1965.23.

(Article 251)

Substituted by

L.N. 339 of 2019.

Extract of Act of Death registered prior to 30th September 1999

FORM 0

Added by

L.N. 339 of 2019.

(Article 251)

Extract of Act of Death registered from 30th September 1999

CIVIL CODE

FORM 0

Added by

L.N. 339 of 2019.

(Article 251)

Amended by

Extract of Act of Death Registered from

XXVII.2020.41.

17th December 2019

Added by

FORM O

L.N. 38 of 2021.

[Article 251]

Extract of Act of Death registered from the 8 th February 2021

CIVIL CODE

FORM P

Added by

XXXI.1965.23.

(Article 251)

Substituted by

L.N. 339 of 2019.

FORM Q

(Article 4(5)

Declaration on Use of Name

Repealed by LXV.2020.29.

FORM R

(Article 4(6)

Declaration on the Retention of Use of Former Husband’s Name

Repealed by LXV.2020.29.

FORM S

(Article 4(2))

Declaration of a Woman who Was Married Before the 4th of February 2005 who

Chooses to Re-adopt the Surname of her Predeceased Spouse

Repealed by LXV.2020.29.

FORM T

(Article 4(3))

Declaration of a Child of the Marriage

Born Before the 7th August 2007 on the Use of a Surname

Repealed by LXV.2020.29.

CIVIL CODE

FORM TT

Added by

[Article 4(8)]

LXV.2020.29.

FORM U

(Article 4(7))

Declaration of the Use of a Surname of Natural Child

or Adopted Person of the Person who submitted Form T

Repealed by LXV.2020.29.

FORM UU

Added by

[Article 4(9)]

LXV.2020.29.

CIVIL CODE

Added by

FORM V

L.N. 311 of 2012.

(Article 278A)

Amended by

XXIII.2017.91.

Declaration by a Person Requesting Minor Alteration on the Name in the Act of

Birth or Form of Entry in Adopted Persons Register

Particulars in the Act of Birth

Act

Name/s of the

Name/s by

Date of Birth

Place of

Number

Child

which the Child

Birth

is to be called

Day Month Year

Request for particulars to be amended to

Name

Declarator’s Signature ...................................Submitted on ..............................

Added by

FORM W

XII.2015.7.

(Article 92(1))

Repealed by LXV.2020.29.

FORM WW

Added by

[Article 92(6)]

LXV.2020.29.

CIVIL CODE

Added by

FORM X

XII.2015.7.

(Article 92(1))

Repealed by LXV.2020.29.

FORM XX

Added by

[Article 92((9), (10)

LXV.2020.29.

FORM Y

Added by

[Article 4(6)]

LXV.2020.29.

CIVIL CODE

PART III

(Article 257)

Particulars regarding corrections of Acts of Civil Status

ACT OF BIRTH

(a) Date of the Act;

(b) Place and date of birth of the child;

(c) Sex of the child;

(d) Names given to the child;

(e) Name or names by which the child is to be called and

surname;

(f) Name and Surname, identification document,Age and place of

birth and residence -

(i) of the parents of the child; and

(ii) of the person making the declaration;

(g) Name and surname of the grandparents of the child and of the

parents of the person making the declaration;

(h) Whether the grandparents of the child or the parents of the

person making the declaration are living or dead;

(i) All the particulars of the witnesses, if any.

A CT O F M ARRIAGE

(a) Date of the Act;

(b) Name and surname (wherever they may occur), date and place

of birth and identification document, and place of residence of

any of the spouses;

(c) Name, surname, and surname at birth of the parents of the

spouses;

(d) All the particulars of the witnesses;

(e) The church, chapel, or other place where the marriage took

place.

(f) The surname after marriage of the spouses.

A CT O F D EATH

(a) Date of the Act;

(b) Name and surname of the deceased;

(c) Whether the deceased was married or unmarried, in a civil

union or not, in a cohabitation registered under the Cohabitation

Act or enrolled by means of a public deed under the

Cohabitation Act, widower or widow;

(d) Age, Identification document,place of birth and residence of

the deceased;

(e) Name and surname of parents including their surname at birth

of the deceased, and whether they are living or dead;

(f) The place and cause of death, and place of burial or

cremation;

(g) All the particulars of the witnesses, if any.

A CT O F CIVIL UNION

(a) Date of the Act;

(b) Name and surname (wherever they may occur), date and place

of birth , Identification document and residence of parties in the

civil union;

(c) Name, surname, and surname at birth of the parents of the

parties in the civil union;

(d) All the particulars of the witnesses;

(e) The place where the civil union took place.

(f) The surname after civil union of the partners.

Laws of Malta — Chapter 16 — CIVIL CODE

(1)

The Law promotes the unity and stability of the family.

(2) The spouses shall have equal rights and shall assume equal

responsibilities during marriage. They owe each other fidelity and

moral and material support.

Laws of Malta — Chapter 16 — CIVIL CODE

Title I

OF LEGAL ORGANISATIONS

Sub-Title I

Preliminary and Definitions

1. (1) For the purposes of this Schedule, an organisation

means a universality of persons who associate or a universality of

things which are appropriated to achieve a lawful purpose having a

form recognised by law, and which is capable of being a legal

person in terms of law.

(2) Organisations may be established in different legal forms.

(3) The lawful purpose of an organisation referred to in sub-

article (1) shall not be contrary to morals and public policy, which

purpose or purposes shall be one of the categories referred to in

sub-article (4).

(4) Every organisation shall be categorised according to its

purpose and the purpose of any organisation may be

(a) to exclusively promote a social or public purpose on a

non-profit making basis, excluding any private benefit,

or if it has beneficiaries, be for the benefit of public

interest beneficiaries. For the purposes of this

paragraph "public interest beneficiaries" shall mean

any of the following

(i)

organisations, which are themselves established

exclusively for social or public purposes on a

non-profit making basis;

(ii) religious organisations;

(iii) public organisations; or

(iv) beneficiaries referred to in article 32(8)

Provided that this excludes any private benefit other than those

listed under the First Schedule to the Voluntary Organisation Act or

under this Schedule, in which case it is referred to as a "public

benefit organisation"; or

(b) to promote any lawful purpose in terms of the

Voluntary Organisations Act other than those referred

to in in sub-paragraph (a)(i), in which case it is referred

to as a "private benefit organisation"; or

(c) to promote any lawful purpose, in which case it is

referred to as a "private interest organisation".

(5) When a private benefit organisation is established with

beneficiaries, the organisation shall be for the benefit of a person or

class of persons who can be ascertained, through the designation of

named persons, whether they are members, shareholders or other

interests or rights, or are otherwise ascertainable.

(6)Legal personality is the status granted by law to an

organisation which is established for a lawful purpose stated in

writ ing in a constitu tive in st rum en t or statute, whi ch has a

patrimony of assets and liabilities, separate and distinct from that

of any other person and the legal powers to achieve such purpose

through the administration of its own governing body.

(7)Legal personality exists when an organisation is recognised or

is established as a legal person by a special law or it is registered in

terms of the provisions of this Schedule or any other special law

which grants legal personality.

(8)In confirmation of the freedom of association guaranteed by

the Constitution and the laws of Malta, an association of persons

shall not be required to qualify as a legal person as a pre-condition

for such association of persons to carry on any lawful activities

pursuant to any purpose for which it has been established.

(9)Any person has a right to establish legal organisations as long

as that person complies with the prescribed rules as to form and

content.

(10)Organisations may be public or private.

(11)Public organisations and their administrators are governed

by the law applicable to the State and the public service, and any

other special laws applicable to the particular organisations. When

the State makes use of forms of legal organisations governed by

Title III of this Schedule or by the provisions of any special law,

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the provisions applicable to the particular legal form shall also apply.

(12)Private organisations are governed by the provisions of Title

III of this Schedule, as may be applicable, and the special laws

which may be applicable to their legal form and their purpose.

(13)In this Schedule -

(a) "constitutive instrument" means the public deed,

private writing, resolution or any other written

instrument or document, or the relevant part thereof,

which establishes an organisation of any form and

includes a will which provides for the setting up of an

organisation;

(b) any reference to "the Court" shall be deemed to be a

reference to the Civil Court (Voluntary Jurisdiction

Section) unless it is otherwise expressly stated;

(c) "deed of foundation" means the public deed or part

thereof, which establishes a foundation and regulates

its governance in terms of article 29. When a provision

in this Schedule establishes a requirement relating to

the deed of foundation, this shall be satisfied if such

requirement is found in the constitutive instrument or

in the statute, or a combination of both, as the case

may be;

(d) "interested party" means a person who is given rights

capable of economic valuation, present or future,

actual or contingent, in the constitutive instrument or

statute of an organisation or who is given powers or

functions therein and shall not include other persons

unless the context otherwise requires, and this, without

prejudice to the right of any person to pursue any civil

right or remedy he may have;

(e) "international organisation" means an organisation of

which only States or other international organisations

are members;

(f)

the term "non-profit making" shall have the meaning

as assigned to it in article 2 of the Voluntary

Organisations Act;

(g) "political purpose" means the promotion of the

interests of a political party or a political candidate,

whether at local, national or international level and

"political party" shall have the meaning assigned to it

by the Financing of Political Parties Act and for the

purpose of this Schedule shall include any other

organisation, of whatever legal form, financially

controlled by or affiliated with a political party or its

purpose, as stated in its statute or constitutive

instrument or public deed or an organisation which

acts in such manner which is not autonomous from a

political party and the terms "political candidate" and

"political

organisation"

shall

be

construed

accordingly;

(h) "promoter" means a person who promotes the

establishment of an organisation or holds himself out

to third parties as such and, after the establishment of

an organisation, in the case of a foundation means the

founder and in the case of an association means the

first associating members;

(i)

"public deed" shall include any documents annexed to

such public deed in accordance with the Notarial

Profession and Notarial Archives Act;

(j)

the terms "public purpose", "public benefit" and

similar phrases mean a social purpose and any other

purpose or benefit which promotes or serves the

general public or general interest or a sector of the

general public and does not promote or serve any

private benefit except as permitted by the Voluntary

Organisations Act and this Schedule;

(k) the term "public organisation" shall mean any

organisation which is controlled, directly or indirectly,

by the Government and an organisation is "controlled

by the Government" where the Government enjoys the

power to appoint or remove a majority of the

administrators of the organisation;

(l)

"relevant date" means the 1st April 2008;

(m) "relevant persons" means

(i) the administrators;

(ii) the protector or members of a supervisory

council, if any; and

(iii) any other natural person exercising ultimate and

effective control over the association by means

of indirect ownership or by other means,

including any person, other than those already

referred to in paragraphs (a) and (b) of this

definition, whose consent is to be obtained or

whose direction is binding, in terms of the

statute of the association or any other instrument

in writing, for material actions to be taken by the

administrators thereof;

(n) "religious organisation" means an organisation

established by a religious authority or another

religious organisation of any denomination to fulfil a

religious purpose including a pious foundation or

ecclesiastical entity as defined in this Schedule;

(o) "social purpose" means any charitable or philanthropic

purpose, and without prejudice to the generality of the

aforesaid, includes

(i)

the advancement of education,

including

physical education and sports;

(ii) the advancement of religion;

(iii) the advancement of health;

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(iv) social and community advancement, including

the promotion of the ethical, educational and

social aspects of a particular profession or trade;

(v) the advancement of culture, arts and national

heritage;

(vi) the advancement of environmental protection

and improvement, including the protection of

animals;

(vii) the promotion of human rights, conflict

resolution, democracy and reconciliation;

(viii) the promotion or protection of the interests of

other public benefit organisations, including

federations of such organisations;

(ix) the carrying out of activities intended to raise

funds to support other organisations which are

exclusively public benefit organisations or to

support the voluntary sector as a whole or parts

of it through the application, grant, transfer or

otherwise making available of funds so raised to

them or for their benefit;

(x) any other purpose as may be prescribed by the

Minister by means of regulations made by virtue

of this Schedule,

and for the purpose of this Schedule, includes a political purpose;

(p) "special law" means an Act of Parliament or any

regulations made thereunder or a part of this Code or a

part of this Schedule which regulates specifically a

particular legal form or forms of organisations,

including civil partnerships, foundations and

associations;

(q) "statute" means the public deed, private writing,

resolution or any other written instrument or

document, or the relevant part thereof, which governs

the purposes, objects, structure, internal management

and administration of an organisation on a continuing

basis after the organisation has been established,

whether it forms part of the constitutive instrument, as

an appendix or otherwise, or is an independent

instrument;

(r) "writing" when used in relation to a notice to be sent

shall mean printed, typewritten, or otherwise visibly

represented, copied or reproduced, including by fax or

electronic mail or other electronic means and in the

case of a private writing a combination of several

signed copies of the same instrument shall suffice;

(s) the words "Registrar for Legal Persons", wherever

they appear in this Schedule shall for all intents and

purposes of law be deemed to mean "The Registrar of

Companies" as defined in articles 400 and 401 of the

Companies Act;

(t)

"Minister" means, unless not otherwise specified, the

Minister responsible for the registration of limited

liability companies and commercial partnerships.

Sub-Title II

Of Foreign and International Organisations

2. (1) Foreign organisations having legal personality under

the laws by which they are established or if they are registered

overseas, under the laws of the place of registration, shall be

recognised as legal persons for all purposes of law for all purposes

of law, with the characteristics of the legal form they may take under

the applicable law.

(2)International organisations which are granted legal personality in

any multilateral or bilateral treaty or agreement to which States or

international organisations, as subjects of international law are parties,

shall be recognised as legal persons for all purposes of law, which

personality shall be governed by the relevant treaty or agreement or by

any law of any State which is selected for the purpose by the parties

thereto. The Minister shall, from time to time, publish a list of such

organisations in the Gazette.

(3)In the case of a foreign or international organisation which has

legal personality, the law, treaty or agreement applicable in terms of

sub-articles (1) and (2) shall apply to all matters regarding such legal

persons, including their form, their existence, the setting-up and

effects of their statute, constitutive instrument or public deed and their

administration, the liability of persons who control or manage or are

otherwise involved in such organisations and their dissolution, and to

the extent that an international organisation is subject to a special law

following the ratification by the State of the treaty establishing such

organisation, such organisation shall also be governed by such law and

in case of inconsistency with its Statute or agreement, the latter shall

prevail.

(4)Subject to the provisions of article 19(8), a foreign or

international organisation which does not have legal personality

under the applicable law shall be recognised as a legal organisation

and all matters regarding such foreign or international organisation

including its form, its existence, the construction and effects of its

constitutive instrument or statute, the liability or otherwise of its

promoters, members or its administrators, its administration and its

dissolution shall be governed by the proper law applicable to its

constitutive instrument or statute, either express or according to

applicable law.

(5)Notwithstanding the law applicable in accordance with the

preceding provisions, when there exists the power to carry out a

trading or a commercial activity, the limitations established under

article 32A shall apply to activities in Malta in case of foundations

established outside Malta.

(6)Unless exempted by express provision of law, any foreign or

international organisation, whether vested with legal personality or

not, which carries on an activity in Malta on a regular basis is

required to register by notice in the prescribed form with the

Registrar for Legal Persons, appointed under article 11 of this

Schedule, prior to commencing its activities.

For the purposes of this sub-article

(a) "regular activity" means an activity having a duration

of more than three months or which is carried out

through a permanent establishment in Malta; and

(b) "permanent establishment" includes a place of

business, office or branch through which an activity is

carried out on a stable and continuous basis

Provided that the obligation to register shall not apply to foreign

religious organisations.

(7)Where a foreign or international organisation, whether having

legal personality or not, does not carry out regular activities in

Malta, but needs to prove its recognition under this article for the

purpose of applicability of the laws of Malta other than this

Schedule, the organisation may register under this sub-article by

means of a notice in the prescribed form.

(8)Whenever the purposes or activities of a foreign or

international organisation are the subject of laws regulating credit

institutions, insurance undertakings, investment services or funds

or the provision of trustee, fiduciary, or corporate services or other

licensable or regulated activities, such organisation may only be

registered with the prior written consent of the Malta Financial

Services Authority, when so required by the applicable law and

where it is otherwise the competent authority under such law,

unless the foreign or international organisation is expressly

exempted from obtaining authorisation under Maltese law.

(9)The Minister may from time to time issue regulations to

modify and redefine what constitutes "regular activity" and to

regulate registrations under this article.

TITLE II

OF LEGAL PERSONALITY

Sub-Title I

Of Legal Persons

3. (1) Legal persons are organisations endowed with legal

personality. Legal personality is acquired through the formal

recognition of the State. Recognition by the State requires a

specific act of recognition and no other administrative act of the

State in relation to an organisation or activity shall constitute

recogni tio n. Except where legal personality is recognised or

established by a law or an international treaty or agreement or is

granted in virtue of registration pursuant to any special law, legal

personality shall only be acquired by an organisation on its registration

with the Registrar for Legal Persons in accordance with article 12.

(2)When organisations are created by voluntary act, they shall be

established in accordance with such legal forms as the law provides

for.

(3)An organisation shall only be recognised as a legal person if it

complies with such formalities as are applicable to the legal form

selected for its establishment and registration.

(4)Organisations created by voluntary act, whether registered or

not, are prim arily governed by the laws applicable to their

particular legal form or to their purpose or category and, where the

provisions of special laws or provisions of other parts of this Code

do not provide on any matter provided for in this Title, also by the

provisions of this Schedule.

(5)Organisations which do not enjoy legal personality shall only

have such rights and powers as are granted to them by or in

pursuance of the express provisions of law.

4. (1) Every legal person has a patrimony which shall be

appropriated to a purpose or purposes in accordance with article 1.

(2)Every legal person must be identifiable by a unique name

which is assigned to it on the date on which it is constituted, and

under which it exercises rights and performs its obligations. Such

name may be changed following the procedure established by law.

Any name must conform to law and include, where required, a

denomination that clearly indicates the legal form assumed by the

legal person.

(3)Every legal person shall have an address in Malta where

communications can be received and information requested about

its activities.

(4)Legal persons act through their organs, such as a board of

administrators, directors or trustees and, to the extent that they have

members the general meeting of members on matters designated to

such organ.

(5)Legal and judicial representation of a legal person shall be

vested

(a) in all cases, in any one or more of the administrators,

jointly and severally, in the manner stated in the

statute or the applicable law;

(b) without limiting the powers of representation of the

administrators as stated in paragraph (a), in other

persons as are named in the statute of the organisation

or other holders of office therein designated; and

(c) the administrators;

shall be deemed to enjoy the power to delegate such powers of

representation by means of a written resolution or written power of

attorney in favour of any third parties. The administrators of a legal

person bind it to the extent of the powers vested in them by law, the

statute and any bye-laws or as otherwise stated in the law applicable

to their particular legal form

Provided that any limitation in the powers of the administrators

shall not be relied upon as against third parties in good faith

irrespective of whether such limitation, published or not, arises

from the statute or from any internal decision, unless it is proved

that such third party was aware that the act was in breach of the

limitation.

Provided further that in the absence of any statement on the legal

r e p r e s e n t a t i o n o f a n y o rg a n i s a t i o n i n t h e s t a t u t e , t h e s o l e

administrator, or if there are more than one, any two administrators,

s h a l l h a v e t h e l e g a l r e p r e s e n t a t i o n o f t h e o rg a n i s a t i o n i n

accordance with this sub-article.

(6)Every legal person shall have at least one administrator who may

act on its behalf or have such minimum number of administrators as

may be required by the law applicable to its legal form, purpose or

category.

(7)Any person acting in the name of a legal person which does

not exist shall be bound personally to perform the obligations

undertaken, and except as otherwise stated in any special law, a legal

person may ratify any act done in its name before it was registered.

Upon ratification the legal person is bound by the obligations

entered into by the person who acted in its name and shall be

entitled to all rights. The ratification shall not constitute a novation

unless the other party to the transaction expressly releases the

person acting in the name of the legal person from the obligations

assumed by it

Provided that a person acting for a legal person before it is

constituted shall not be bound personally if the contract stipulates

otherwise or includes a statement to the effect that the agreement is

conditional upon the legal person coming into existence or that the

legal person might not be constituted or may not assume the

obligations undertaken in the contract.

Provided further that notwithstanding the provisions of this sub-

article, where a third party deals in good faith with persons acting

in the name or on behalf of a legal person before its establishment,

any contract would come into effect from the date on which the

organisation shall come into existence, and the organisation shall

be entitled to be indemnified by the persons who had acted in its

name or on its behalf with respect to its liability under this sub-

article towards the said third party.

(8)Legal persons may not exercise tutorship or curatorship to a

person. They may, however, to the extent that they are authorised

by law to act as such, hold office as trustee or curator of property.

They may also act as a liquidator or executor of a will, an official

consignee, a judicial sequestrator, a trustee or an administrator of

another legal person.

(9)Legal persons may be the beneficiaries of dispositions under

wills as well as donations subject to the following provisions

(a) testamentary dispositions in favour of unregistered

organisations shall not come into effect, and to the

extent performed shall be revocable on demand by

application to the Court of any person interested in the

will unless an application for the registration of such

organisation is made in terms of the applicable law

within one year from the day of the opening of

succession;

(b) donations made to an organisation shall be deemed to

be made on the assumption that it is registered or will

be registered and shall not come into effect, and to the

extent performed shall be revocable on demand by

application to the Court of the donor, unless an

application for the registration of such organisation is

made in terms of the applicable law within one year

from the donation;

(c) the administrators who have been informed of their

engagement and accept the same shall effect such

registration within the period above stated; and

(d) the Court shall have the power to extend such time

limit on application of any administrator or other

interested party or to order the administrator or any other

relevant person to register the organisation and do all

such acts as may be necessary to ensure that the intent of

the testator or donor, as the case may be, is achieved at

its discretion.

(10)The provisions of sub-article (9) shall not apply to testamentary

dispositions and donations in favour of pious foundations, marriage

legacies and ecclesiastical entities.

(11)Legal personality may not be set up against a person in good

faith in order to perpetrate fraud.

5. (1) A legal person exists in perpetuity unless otherwise

provided by law or its statute, constitutive instrument or public deed.

(2)Legal persons constituted directly by or in terms of a special

law exist from the date of the coming into force of the law or from

the date prescribed therein. In other cases, legal persons exist from

the date of registration or from such other date provided for in the

laws that are applicable to their particular legal form.

(3)Legal persons cease to exist with effect from the date when

they are struck off from the relevant register in accordance with the

laws applicable to their particular legal form or as stated in any

special law.

(4)Without prejudice to the rules applicable to legal persons of a

particular legal form, on the application to the Court of any

interested person or the Registrar, the Court may, failing the taking

of such relevant actions by the legal person or its officers according

to the applicable law, order the striking off from the register of the

legal person in the following cases

(a) when the persons vested with such authority so

determine in accordance with the statute, constitutive

instrument or public deed; or

(b) upon the happening of the events expressly stated to

have such effect -

(i) in the constitutive instrument or statute; or

(ii) in the laws that are applicable to its particular

legal form; or

(c) when the purpose for which it has been established has

been achieved, exhausted or has become impossible;

or

(d) when there is no administrator in office or the number

of administrators falls below the minimum required by

law for a particular legal form for a period exceeding six

months; or

(e) when the number of members falls below that required by

this Schedule in the case of an association or when there

are no beneficiaries in the case of a beneficiary

foundation.

6. (1) Notwithstanding that they are not registered in a

register which results in legal personality, organisations which

were recognised as being legal persons prior to the coming into

force of this Act, hereinafter referred to as the "relevant date", in

terms of any final judgement delivered by any Court relating to that

particular organisation, shall continue to be recognised as legal

persons indefinitely unless -

(a) such continuing status is subject to registration in

terms of this Schedule or any special law, or is required

in a notice issued by the Minister and published in the

Gazette and registration is not effected within the time

provided for in such notice, in which case they shall

cease to be recognised as legal persons with effect

from the lapse of such date, or

(b) they otherwise cease to exist according to law.

(2)All foundations, hereinafter referred to as an "existing

foundation", created by public deed and existing on the relevant

date shall be deemed to have had legal personality from the date of

their establishment but shall be bound to register as legal persons in

terms of this Schedule within four calendar years of the relevant

date.

(3)Notwithstanding that an existing foundation fails to register as

required by sub-article (2), such existing foundation shall continue

to enjoy legal personality in accordance with sub-article (1).

(4)Religious organisations and marriage legacies which are

constituted as foundations shall not be bound to register and shall

continue to be recognised as legal persons until they are wound up.

(5)An existing foundation which has been established by a public

deed and notwithstanding whether it was registered pursuant to this

Schedule or not shall

(a) have full legal capacity and all the powers of a

registered legal person as stated in this Schedule and

the restrictions in article 14 shall not apply to it;

(b) continue to be the exclusive owner of all its property

even if acquired after the lapse of the period referred

to in sub-article (2) and shall be liable for its own

obligations;

(c) until it is registered in accordance with this Schedule,

the liability of its administrators shall be governed by

the provisions of article 17 and other provisions

applicable to unregistered organisations for all acts

carried out from the lapse of the period stated in sub-

article (2) until the date of registration but the

administrators shall not be in any way liable for

obligations entered into by the existing foundation

prior to such date unless they have personally assumed

such obligations in writing; and

(d) when it is registered, the provisions of article 16 shall

thereafter apply to all acts of the administrators after

the date of registration.

(6)An existing foundation which has not been established by a

public deed and which fails to register shall

(a) have the capacity only to achieve its stated purposes

and all ancillary matters;

(b) be subject to the restriction in article 14(5);

(c) be deemed to be the exclusive owner of all its property

which shall constitute a distinct patrimony; and

(d) have its administrators be jointly and severally liable

and with the organisation for the obligations entered

into by the foundation, subject to the provisions of the

second proviso to article 17(3).

(7)All associations, established in writing before the relevant

date, hereinafter referred to as "existing associations", the form of

which is recognised as a legal person in accordance with applicable

law or, in terms of any final judgement delivered by the Court

relating to that particular organisation prior to the relevant date

shall continue to be recognised as legal persons although they are

not registered; however, existing associations which do not register

as legal persons, as well as their administrators, shall be governed

by the provisions of this Schedule applicable to unregistered

organisations with effect from the lapse of four calendar years from

the relevant date.

(8)When an organisation -

(a) is established as an association

but

has

the

characteristics of a foundation; or

(b) is established as a foundation

but

has

the

characteristics of an association; or

(c) qualifies for registration both as a foundation and as an

association,

it shall be referred to herein as a "hybrid organisation" and shall

be regulated by the following provisions of this article.

(9)A hybrid organisation shall be established by means of a

statute, which may be amended from time to time, to clearly

identify the form of a foundation or an association.

(10)Until the hybrid organisation complies with sub-article (9),

the administrators shall be subject to the provisions of this

Schedule on both foundations and associations in their

administration.

(11)Where an action to modify the statute of a hybrid

organisation is not taken by the founders or such other persons or

bodies authorised by the statute or, in the case of associations, the

members, or it is impossible or impracticable to do so, the

administrators of a hybrid organisation may, at any time, apply to

the Court to sanction such modifications as are appropriate to

clarify the legal form of such organisation either as a foundation or

an association and the Court shall issue such orders as it deems

appropriate, including amendments to the statute and the name of

the organisation, after considering all evidence submitted to it and

after hearing interested parties who may wish to make submissions.

(12)In reaching a decision in terms of the preceding sub-article,

the Court shall inter alia pay regard to the initial intentions of the

promoters, the purposes of the organisation and its current

operations, the rights of beneficiaries or members, the future

fulfilment of its purposes and management of the organisation.

(13)The Court shall also have the power to

(a) order, upon application of the administrators, the re-

organisation of the organisation by the creation of

other organisations whereby one or more promoters,

founders, members or beneficiaries, as the case may

be

(i)

cease to be treated as founders or otherwise of a

foundation and, or form an association with the

sole purpose of supporting the said foundation or

enjoying the benefits of membership; or

(ii) cease to be treated as members of an association

and, or form a foundation to achieve the stated

purposes without any benefits of membership;

(b)direct otherwise than as provided in paragraph (a) so as to

ensure the effective achievement of the initial purposes of the

organisation.

(14)In making an order referred to in the preceding sub-article,

the Court shall ensure that neither the purposes of the organisation

nor any vested rights of any person shall be affected, nor shall any

obligations other than those freely undertaken by any person arise

from such modification or reorganisation.

(15)It shall not be lawful to register a hybrid organisation under

this Schedule and the Registrar shall require compliance with sub-

article (9) prior to accepting the registration thereof.

Sub-Title II

Of Administrators

7. (1) Every organisation shall be managed by one or more

administrators who shall be responsible for maintaining possession

and control of the property of the organisation, safeguarding such

property and ensuring compliance with the constitutive instrument

and statute of the organisation, the provisions of this Schedule and

any special law applicable to its particular legal form, purpose or

category.

(2)For the purposes of this Schedule, "administrator" means an

officer or a person who is appointed to control and administer an

organisation including a governor, a director, a trustee or a

committee member and any person who carries out such functions

even if under another name.

(3)The statute shall designate the first administrators, how they are

appointed and removed from office or if not designated, how

administrators are appointed and removed.

(4)Subject to the terms under which they are engaged,

administrators are bound by fiduciary obligations as stated in

article 1124A of the Code.

(5)If a legal person does not have at least one administrator in

office or the minimum number of administrators required at law,

the State Advocate or any other interested party shall be entitled to

request the Court to appoint an administrator or administrators for

such purposes, for such time and under such conditions as the Court

considers appropriate. When such an application is made, the

period referred to in article 5(4)(d) shall be suspended until the

Court determines the application and should an application be made

after the lapse of the said period, an appointment by the Court shall

be effective provided it is made at any time prior to the striking off

of the legal person from the relevant register.

8. (1) Persons convicted of any of the crimes mentioned in

Titles V, VI and IX of Part II of Book First of the Criminal Code in

the previous ten years or persons who have been interdicted by order

of any court in Malta in terms of the Criminal Code, or overseas under

laws of equivalent effect, shall not be eligible for appointment or

election to

(a) the office of treasurer, deputy treasurer or assistant

treasurer or a similar office of an organisation; or

(b) any other office in such organisation the holder of

which is responsible for the collection, disbursement,

custody or control of the assets of the organisation or

for its accounts; or

(c) an auditor of such organisation.

(2) Persons convicted of any offence involving money

laundering or the funding of terrorism shall not be eligible for

appointment or election to the office of administrator or, if already

appointed or elected, shall not be eligible to retain such office.

(3) The Court may, either generally or with reference to a

particular organisation -

(a) disqualify any person from holding an office within an

organisation; or

(b) disqualify any person from performing identified

functions within an organisation,

and this, on any of the grounds mentioned in this article,

following the application of any interested party, the State Advocate

or, in the case of voluntary organisations, the Commissioner for

Voluntary Organisations.

The Court may rehabilitate such person in accordance with

regulations, which may be made by the Minister from time to time

regulating the disqualification of administrators, their

rehabilitation and the registration of such disqualification and

rehabilitation orders in the Registry for Legal Persons or the Public

Registry, as the case may be.

(4)Persons who are subject to a disqualification order issued by

the Court in terms of sub-article (3) shall not perform such

functions, either generally or with reference to a particular

organisation, and this, for such times as are stated in the order.

9. (1) Administrators may be removed in cases of

misconduct, failure to declare conflicts of interest, breach of duty

or failure to comply with the statute or any provisions of this Title

Provided that, notwithstanding any provision of the statute of an

organisation, any action intended to remove an administrator on

such grounds shall be preceded by a notice in writing to such

person stating the alleged reasons for such removal and providing

such person with a reasonable opportunity to defend himself and

rebut the allegations.

(2)Removal of an administrator shall take place in accordance

with the statute of the organisation. After exhausting all applicable

remedies within the organisation, any person who demonstrates an

interest may apply to the Court with a request for removal of an

administrator and the Court shall issue such orders as it deems

necessary after hearing the applicant and the administrator and

considering any other relevant evidence.

(3)The Court may, when it orders the removal of an

administrator, name a temporary or definitive administrator or

administrators in substitution when it appears to the Court that the

method of appointment as stated in the statute will not result in an

effective and immediate appointment of a substitute administrator

or administrators.

(4)Any provision in a statute to the effect that an administrator

may not be removed for the reasons mentioned in sub-article (1)

shall be null and void.

(5)The Court may impose disqualification in terms of article 8 of

this Schedule in any case where it orders the removal of an

administrator.

(6)The powers of the Court referred to in this article may be

exercised by any Court appraised of proceedings involving an

administrator.

10. (1) Administrators shall keep records of -

(a) all assets and liabilities; and

(b) all income and expenditure,

of the organisation for annual financial periods.

(2)Administrators shall prepare such accounts and reports at such

times and with such form and content as may be prescribed or as

may be applicable to their particular legal form. Such accounts and

reports shall be reviewed and shall be published and, or filed as may

be prescribed or as may be required by applicable law.

(3)Until such time as

(a) the form and content of accounts and reports; and

(b) the rules on review, publication and, or filing are

prescribed in terms of sub-article (2), for legal

organisations, the form of which is not regulated by a

special law, in which case the special law shall apply,

the following rules shall apply, unless the legal

organisation opts that accounts are drawn up, prepared,

reviewed and published for each financial period in

accordance with generally accepted accounting principles

and practice, as defined in the Accountancy Profession

Act, or subject to the advice of a certified public

accountant and auditor, by some other principles and

practices, as may be chosen from time to time by the

administrators

(i)

in the case of organisations established exclusively for

public benefit, the provisions applicable to enrolled

voluntary organisations shall apply, irrespective of

whether such organisations are enrolled or not

Provided that this paragraph shall not apply to organisations

established for a political purpose, which shall be regulated mutatis

mutandis by the Financing of Political Parties Act

Provided further that, when the organisation is not a political

party as defined under article 2 of the Financing of Political Parties

Act but is only controlled by or affiliated to a political party, or its

purpose as stated in its statute or constitutive deed, is such as

renders it non-autonomous;

(ii)

in the case of private interest foundations

A.in the case of foundations which are permitted to carry out

commercial activities under article 31B, in lieu of the requirements

prescribed under articles 13 to 18 of the Commercial Code, the

p r o v i s i o n s o f C h a p t e r I X a n d X o f P a r t V of Ti t l e I o f t h e

Companies Act shall apply mutatis mutandis and any references

made to the Registrar of Companies shall be made to the Registrar

for Legal Persons

P r o vi d e d t ha t t he M i n is te r sh a l l ha ve t h e p o we r t o i s s ue

regulations on matters stated in articles 188 and 189 of the

Companies Act and also to exclude the application of specific

articles or sub-articles of the said Act and to determine the manner

in which they are to apply in such context;

B. in the cases mentioned in article 31C, any guidelines as may be

issued from time to time by the competent authorities, relating to trusts

and trustees;

C.in the case of associations where all the members are limited

liability companies, the provisions of paragraph A shall also apply;

and

D. in all other cases of associations where the members are not all

limited liability companies, sub-article (1) and (2) and any relevant

regulations shall apply and, in the absence of specific regulations, the

accounting rules and conventions relating to civil partnerships shall

apply.

(4)Such accounts, reports and records shall be held for a period

of ten years after the relevant annual period to which they refer, or

for such other period imposed in relation to an organisation under

any special law applicable to its legal form.

Sub-Title III

Of the Registrar

11. (1) The Minister may make regulations laying down the

functions and powers of the Registrar.

(2)The Registrar shall be bound to notify decisions he may take

refusing applications to register organisations in writing, providing

the reasons for his decision. Any person or organisation which is

aggrieved by any decision of the Registrar may appeal to the Court

from the decision within thirty days of receipt thereof or where

there is no response to an application to the Registrar to register an

organisation, after forty-five days from the date of application to

register.

(3)The Registrar for Legal Persons shall administer the Registry

for Legal Persons and, in the absence of any provisions to the

contrary, the Public Registry Act shall apply mutatis mutandis to

registrations made in terms of this Schedule. In case of

inconsistency, the provisions of this Schedule shall prevail. Save as

otherwise provided, all registrations in terms of this Schedule shall

be made with the Registrar for Legal Persons unless registration in

the Public Registry is specifically required.

Sub-Title IV

Of Registration of Organisations

12. (1) Organisations may be registered in such manner as

may from time to time be provided in this Schedule or in the law

that is applicable to their particular legal form.

(2)In the absence of provisions on registration in relation to any

form of organisation which may be granted legal personality by any

law, organisations shall be registered with the Registrar for Legal

Persons in accordance with the provisions of this Title or of any

regulations.

(3)Where an organisation may acquire legal personality through

registration in a public registry under any other law applicable to

its form, it shall not be lawful to register such an organisation in

terms of this Sub-Title.

(4)Except for public organisations and other organisations which

are already registered in a public registry and have legal personality

as a result thereof, the enrolment of an organisation with or the

issue of a certificate or licence by the State which, in terms of any

applicable law, grants legal personality to the organisation shall be

interpreted as requiring, as an additional condition thereof, the

registration of such organisation in terms of this Schedule.

(5)It shall be a condition for registration of any organisation the

administrator or administrators of which are not ordinarily resident

in Malta, to appoint and retain at all times, a person who is

ordinarily resident in Malta to act as local representative and such

representative shall have, by operation of the law and without the

need of any act on the part of the administrators

(a) the legal representation of such organisation in Malta

and this for all purposes of any law in Malta; and

(b) the legal representation of such organisation limitedly

to the signing of forms and other notifications to the

Registrar and other competent authorities in Malta and

the enrolment of instruments and other documents

executed by the administrators with a Notary Public in

Malta when necessary to comply with the legal

obligations of the organisation in Malta

Provided that if the administrators appoint another person or

persons to carry out the acts stated in paragraphs (a) and (b), the

local representative shall only act in consultation with such persons

when such person or persons are not in Malta or if they fail to carry

out any such function when required to do so within the times

stated in this Schedule.

For the purpose of this sub-article, residence shall be established

by documentary evidence.

(6)A certificate of registration given in respect of an organisation

is conclusive evidence that the requirements of this Schedule in

respect of registration and of matters precedent and incidental to it

h a v e b e e n c o m p l i e d w i t h an d t h a t t h e orga n i s a t i o n i s d ul y

registered in terms of this Schedule.

(7)The provisions of this Schedule regulating the registration and

filing of documents and notes of registration in the Register of

Legal Persons shall apply to the registration and filing of acts by all

registered legal organisations governed by this Schedule and the

provisions of any other law regulating the filing and registration of

documents in a public registry shall not apply except where

expressly stated.

Sub-Title V

Of Unregistered Organisations

13. (1) An unregistered organisation is an organisation having

a form recognised by law, which is constituted by an instrument in

writing and which, being registerable in terms of this Schedule or

any other special law, is not so registered.

(2)The instrument in writing establishing an unregistered

organisation shall contain, on pain of nullity, an express statement

of a specific purpose or purposes for which the organisation has

been established.

(3)Without prejudice to the right of association of any person and

the right of any person to establish an organisation, an association

of persons or the appropriation of property to a purpose which is

not in written form is not recognised for the purposes of this

Schedule.

(4)The following organisations shall not be treated as

unregistered organisations for the purposes of this Schedule

although they are not registered with the Registrar for Legal Persons

(a) any organisation which is already registered pursuant

to a special law regulating its form resulting in legal

personality;

(b) public organisations, except those public organisations

which have been established in a legal form which

requires registration, if they are not registered;

(c) foreign and international organisations not obliged to

register in Malta; and

(d) pious foundations, marriage legacies and ecclesiastical

entities, each of which shall be regulated and governed

by the law applicable to their particular form or

purpose or category and, except as herein provided,

shall not be subject to the provisions of this Schedule,

each of which shall be regulated by any special law applicable to

their particular form.

14. (1) Saving as otherwise stated in this Schedule, unregistered

organisations are not legal persons but, pursuant to this Sub-Title, they

enjoy recognition, as a matter of fact, and legal powers to achieve the

stated purposes for which they are constituted.

(2)An unregistered organisation may enter into transactions in

relation to movable or immovable and other registerable property,

may open bank accounts and may engage persons and contractors

to provide services it may require for the achievement of the express

purposes of the organisation and all ancillary matters.

(3)An unregistered organisation may enter into contracts in its

own name.

(4)An unregistered organisation may be sued in its own name

and is represented in legal proceedings by any administrator. An

u n r e g i s t e r e d o rg a n i s a t i o n m a y s u e i n i t s o w n n a m e a n d i s

represented by the person who, in terms of the statute, enjoys such

power or in the absence of such appointment, by the sole

a d m i n i s t r a t o r o r, i f t h e r e i s m o r e t h a n o n e , b y a n y t w o

administrators.

(5)An unregistered organisation may establish other organisations

provided the other organisations are registered.

15. (1) The internal management and administration of an

unregistered organisation is r eg ulated by it s statut e. L eg al

representation of the organisation shall be vested in the person

who, in terms of the statute, enjoys such power or, in the absence of

such appointment, by the sole administrator or, if there is more than

one, by any two administrators.

(2)The contributions of the promoters and assets acquired by

such contributions constitute the patrimony of the unregistered

organisation. Any obligations undertaken by the unregistered

organisation may be enforced against such patrimony without

prejudice to the liability of other persons for such obligations.

(3)Any property acquired by any means by an unregistered

organisation shall be considered to be held by or for the following

interests as the case may be where it is established

(a) as a private benefit organisation, unless otherwise

stated in its statute or in any written instrument signed

by the promoters and authenticated by a Notary Public,

such property shall be considered to be held for the

promoter in ownership or the promoters in co-

ownership according to the proportion of their

contribution to the unregistered organisation;

(b) partly for a private benefit and partly for a social or

other public purpose, unless otherwise stated in its

statute or in any written instrument signed by the

promoters and authenticated by a Notary Public, such

property shall be considered to be held in ownership

for the private benefit subject to the performance, by

the promoters or administrators, as fiduciaries, of the

social or other public purpose, until the said purpose is

achieved, exhausted or becomes impossible or is

otherwise addressed by the appropriation or

endowment of a sufficient part of the property to a

registered public benefit organisation with a similar

purpose;

(c) solely for a social or other public purpose, or in the

case of religious organisations and marriage legacies

and public organisations in the form of foundations,

religious or public purposes respectively, such

property shall be held by the promoters or

administrators as fiduciaries only for the purpose

stated in the statute or any special law which may be

applicable to it.

(4)On dissolution of an unregistered organisation which is

(a) established as a public benefit organisation, the

property of the organisation must be applied in

accordance with article 32;

(b) established as a private benefit organisation, the

property shall be distributed in accordance with the

express terms of the statute, failing of which, to the

promoters or their heirs

Provided that any person with a co-ownership right in property

of an unregistered organisation may only demand the division of

such patrimony and any promoter or administrator may only

dissolve the organisation and, or withdraw his contribution from an

unregistered organisation when all obligations towards third parties

have been performed and, or its purposes have been achieved,

exhausted or become impossible.

Sub-Title VI

Of Responsibility of Persons involved in Organisations

16. (1) The promoters or members of a registered organisation,

or in case of a registered foundation, the founders, the donors or the

beneficiaries shall not be liable for the obligations of such an

organisation, except to the extent that they expressly agree to be so

liable. The liability of such persons towards third parties for the

obligations of the organisation shall be determined in accordance with

any rules which may be applicable to the legal form of the organisation

in terms of any special law or, in the absence of any special law, the

provisions of this Schedule.

(2)The promoters and members of a registered organisation or in

the case of a registered foundation, the founders, the donors or the

beneficiaries, are liable towards the legal person for anything they

have bound themselves to contribute to it in writing, unless

otherwise provided by law.

(3)In case of unlawful acts, a Court may, on the application of

any interested party, declare the founders, promoters, administrators,

beneficiaries or members who have consented to or otherwise have

knowingly taken part in the unlawful act to the detriment of the

legal person, as personally liable for any damage suffered by the

legal person.

(4)The administrator of a registered organisation shall not be

personally liable for the obligations of the organisation except in

the following cases

(a) to third parties for the obligations of the organisation

if -

(i)

he is guilty of fraud or bad faith in entering into

any obligations;

(ii) he has entered into obligations in favour of third

parties at a time when he knew or ought to have

known that there was no reasonable prospect

that the organisation would avoid being wound

up due to insolvency;

(b) to the organisation for the performance of the

obligations that he has entered into on its behalf,

without being entitled to the benefits, and for any

benefit which accrues to him personally, if he has

failed to declare a personal interest or a conflict of

interest;

(c) to the organisation to account for any loss if he has

acted in breach of duty as stated in the statute or this

Schedule in bad faith or has been negligent in the

carrying on of his duties;

(d) to the beneficiaries of an organisation or the Attorney

General on their behalf, if he has acted as stated in

paragraph (c) or in a situation where there is a conflict

of interest;

(e) to the Registrar for the payment of any fees which may

be due by the organisation upon failure by the

organisation to pay the same within three months of

the date on which they are due

Provided that nothing in this sub-article shall render an

administrator liable more than once for the same act.

(5)In those cases where an organisation has more than one

administrator, the responsibility of the administrators shall be joint

and several unless some particular duty has been exclusively

entrusted to one particular administrator, in which case only he

shall be liable.

(6)An administrator shall not be liable for the acts of another

administrator if he shows that he was not aware of the breach at the

time of its occurrence and on becoming aware of it he signified his

dissent in writing without delay and took all reasonable measures to

hinder the continuation of the breach or knowing of the intended

breach he took all reasonable measures to avoid its occurrence.

(7)Any provision in the statute of the organisation or any

agreement exonerating an administrator from liability for wilful

misconduct, gross negligence or breach of duty shall be null and

void.

17. (1) Any member, donor, or beneficiary involved in any

unregistered public benefit organisation, shall not be liable for the

obligations of such organisation except as follows

(a) he shall be liable to the extent that he expressly agrees

to be so liable in the statute or any other document

signed by him;

(b) he shall be liable for the obligations of the

organisation if these were entered into by him in the

name of the organisation in favour of third parties at a

time when he knew or ought to have known that there

was no reasonable prospect that the organisation

would avoid being wound up due to insolvency; and

(c) he shall be liable if he is guilty of fraud or bad faith in

entering into any obligations on behalf of the

organisation.

(2) The promoters and administrators of an unregistered

organisation shall be jointly and severally liable -

(a) to keep the property of the unregistered organisation

identified as such and distinct from their own personal

property and other property they may be

administering;

(b) for the preservation of any property received;

(c) for the use of assets to the fulfilment of the purposes

expressly stated in the statute of the unregistered

organisation; and

(d) to ensure, to the extent possible, considering their

functions, observance of the law applicable to the

unregistered organisation and its activities.

(3)Without prejudice to the availability of assets of an

unregistered organisation for the fulfilment of its obligations,

members and supporters of an unregistered organisation shall only

be liable for the obligations expressly undertaken by them in the

statute or any subscription document.

(4)The liability of members and administrators of an

unregistered organisation having a particular legal form, towards

third parties, for the obligations of the unregistered organisation

shall be determined in accordance with any rules which may be

applicable to the legal form of the organisation under any special

law or, in the absence of any special law, the provisions of this

article.

(5)Any provision in the statute of an unregistered organisation or

any agreement with the unregistered organisation exonerating an

administrator from liability for wilful misconduct, gross negligence

or breach of duty shall be null and void.

(6)Where the liability of members and administrators of an

un registered organisatio n havin g a pa rt ic ular l eg al for m i s

regulated specifically by a provision of this Schedule or any special

law, such provisions shall prevail over the provisions of this article.

18. Any person who claims or purports to act in the name of a

legal person which does not exist or an unregistered organisation

for which no written instrument exists shall be personally liable to

fulfil all the obligations undertaken and shall be liable for any

damages caused through such actions. Such person shall be

personally bound to return to the grantor any property received for

the purported purposes of the organisation.

Sub-Title VII

Of Liability of Organisations

19. (1) Legal persons are distinct from their promoters,

founders, administrators and members, if any. The acts of legal

persons bind no one but themselves except as provided by law.

(2)An organisation shall be liable for the fulfilment of its

obligations with all its present and future assets and shall not be

liable for the obligations of any other person except to the extent

that it expressly agrees to be so liable.

(3)An endowment of property shall be subject to reduction or

revocation to the extent it is in conflict with any rules of mandatory

a p p l i c a t i o n o r i n t e r m s o f a r t i c l e 11 4 4 o f t h e C o d e i f i t i s

detrimental to the rights of a creditor

Provided that an administrator who has acted in good faith shall

not be liable to account for any assets paid out, distributed or

expended in accordance with the statute of the organisation without

knowledge of the claim by the third party.

(4)The rules in sub-articles (2) and (3) shall mutatis mutandis

apply to an unregistered organisation, without prejudice to the

personal liability of its administrators or other persons as stated in

this Schedule.

(5)A registered organisation may, unless prohibited by its statute,

establish other organisations, of any legal form, to achieve all or

any of the purposes for which it has been established, whether the

latter constitute legal persons or not.

(6)When a registered organisation establishes other organisations

which are registered as legal persons and maintains control over

them, the organisations shall constitute a group of organisations for

the purposes of this Schedule. An organisation shall be deemed to

control another organisation if the administrators of the first have

the power to appoint or remove the administrators of the second, or

if this power has been vested in another person, persons or organ of

the second organisation, if the administrators of the first have the

power to amend or revoke the vesting of such power.

(7)An organisation forming part of a group of organisations,

whether as founder or as a member of the group, shall not be liable

for the obligations of other members of the group except to the

extent it expressly undertakes in writing or as otherwise provided

in any provision of this Code.

(8)Notwithstanding the provisions of article 2, the liability of all

foreign and international public benefit organisations which -

(a) operate in Malta, including if they raise funds in

Malta; or

(b) provide services available to the public within Malta,

as well as that of their administrators, shall also be subject to the

provisions of this Schedule in so far as their activity in Malta is

concerned, subject however to any provisions of any special law

applicable to them.

Sub-Title VIII

Miscellaneous

20. (1) It shall be lawful for a registered organisation to

establish segregated cells within the organisation to achieve

particular purposes with particular assets. Where the special law

applicable to a particular legal form of registered organisation

already provides for segregated cells, or equivalent features, such

provisions shall apply to the exclusion of the provisions of this

article.

(2)A segregated cell within a registered organisation exists when

established formally

(a) by the statute of the organisation on creation of the

organisation; or

(b) subsequently by a resolution of the administrators

pursuant to a power vested in them by the statute and

in either case shall be established

(i)

by reference to shares, interests or other rights of

the members or beneficiaries or by reference to

purposes, or by reference to both such rights and

purposes; or

(ii) for purely administrative purposes which

support the main purposes and operations of the

organisation; and

(iii) with other purposes which shall be consistent

with the main purposes of the organisation.

(3) Segregated cells may be established, except for those

established for purely administrative reasons

(a) in the case of a public benefit organisation, only to the

extent as they are established exclusively for public

benefit on a non-profit making basis, or other legitimate

purpose excluding private interest and may include

public interest beneficiaries; and

(b) in the case of a private interest foundation, for private

purposes including any commercial, administrative,

security or transactional purposes, including purposes

ancillary thereto, in particular those referred to in article

31B of this Schedule.

(4) When the segregated cell is established by the statute of the

organisation, the administrators shall be presumed to have the

power to supplement such statute with additional guidelines on the

purposes and activities of the cell in a manner which supports the

purposes and objects of the organisation.

(5) Segregated cells shall, after establishment, be regulated

either in the statute of the organisation and, or in a cell statute. A

cell statute shall be consistent with the statute of the organisation.

The statute of the organisation shall apply on any issue which is not

addressed in the cell statute and shall prevail over the cell statute in

case of inconsistency.

(6) A cell statute shall

(a) state the following matters

(i)

the name of the cell;

(ii) the purposes or objects of the cell;

(iii) the manner in which the administrators shall

manage its affairs, directly or through an

administrative committee, which shall in any

case not have legal representation of the cell;

(b) be in the form of a resolution or guideline of the

administrators;

(c) in case of a cell for beneficiaries, either state the

names of the beneficiaries or the class of beneficiaries

or, in the absence of such indication, a declaration that

the cell is constituted for the benefit of beneficiaries.

In the latter case the beneficiaries shall be indicated in

a written instrument, which need not form part of the

cell statute, called a "cell beneficiary statement" and

which shall be signed by the administrators in the

presence of a notary public, and all provisions in the

Schedule relating to beneficiary statements shall apply

mutatis mutandis to cell beneficiary statements; and

(d) comply with the requirements of this article.

(7)A segregated cell shall have its own distinct name or designation

and it shall refer to the organisation of which it forms part in all its

dealings, but shall not be a legal person nor shall it be eligible for

registration as a legal person. A cell may not change its name or

designation under any circumstances.

(8)A segregated cell is established subsequently to the creation

of an organisation when the following conditions are observed

(a) the organisation is authorised by its statute to establish

segregated cells;

(b) the administrators of the organisation resolve in

writing to establish such cell; and

(c) a notice relating to the establishment of a segregated

cell is delivered to the Registrar for registration.

(9When a segregated cell is established -

(a) the assets and liabilities of the cell shall constitute a

distinct patrimony which shall be distinct from all

other assets and liabilities of the organisation or other

cells which may be established;

(b) the assets of such cell shall be available for the

fulfilment of any obligations undertaken by the

organisation in relation to that cell but not for any

other liabilities entered into by the organisation for

itself or in respect of other cells;

(c) the general assets of an organisation shall not be

available for the fulfilment of the obligations

undertaken in relation to the cell; and

(d) there shall be implied (except in so far as the same is

expressly excluded in writing) in every transaction

entered into by an organisation with segregated cells

the following terms that -

(i)

no party shall seek, whether in any proceedings

or by any other means whatsoever, to make or

attempt to use any assets attributable to any cell

to satisfy a liability not attributable to that cell;

and

(ii) if any party succeeds by any means whatsoever

in using any assets attributable to any cell to

satisfy a liability not attributable to that cell, that

party shall be liable to pay to the organisation a

sum equal to the value of the benefit thereby

obtained by him; and

(iii) any asset or sum recovered by the organisation

under the implied term set out in this paragraph

or by any other means whatsoever in the events

referred to herein shall, after the deduction or

payment of any costs of recovery, be applied by

the organisation so as to compensate the cell

affected.

(10)When a segregated cell is established the assets of the cell

must be segregated from all other assets of the organisation and are

held and administered separately and distinct accounts must be

maintained in accordance with applicable law in relation to each

cell. The existence or termination of each cell must be disclosed in

the reports and accounts of the organisation.

(11)The legal effects stated in sub-article (10) shall arise only if -

(a) all activities relating to a cell shall be undertaken in a

manner that it is expressly disclosed to third parties

that the activities are those in respect of the particular

cell

Provided that such requirement shall be satisfied if

third parties are otherwise aware or ought, from the

circumstances, to be aware of the fact that the

activities undertaken are those in respect of the

particular cell;

(b) no statement or representation is made by the

administrators of the organisation to the effect that the

organisation is liable for the obligations undertaken in

respect of the cell;

(c) the cell is established in accordance with this article

and all relative procedures and formalities are

observed at all times.

(12)When the conditions in sub-article (7) are satisfied, no court

shall order the issue of any warrant, precautionary or executive,

against the assets of a cell in respect of a claim for which the

organisation or another cell is liable. In the event of enforcement

on any assets attributable to a cell in respect of a liability not

attributable to that cell, and in so far as such assets or

compensation in respect thereof cannot otherwise be restored to the

cell affected, the organisation shall -

(a) cause or procure its auditor, acting as expert and not as

arbitrator, to certify the value of the assets lost by the

cell affected; and

(b) transfer or pay to the cell affected, from the assets to

which the liability was attributable to the extent

available, assets or sums sufficient to restore to the

cell affected the value of the assets lost.

(13) The rules, including without limitation the rules applicable

to dissolution and winding up, applicable to the legal form of an

organisation within which a cell is established shall apply mutatis

mutandis to the cell as though the cell were itself a registered

organisation of the same legal form with such modifications as are

necessary to accommodate the fact that the cell is not a legal

person.

(14)The winding up of a cell, whether voluntarily or due to its

inability to perform its obligations shall not affect the continuing

operation of the organisation which established it or other cells in

any manner whatsoever and the appointment of a liquidator for a

cell shall not affect the powers of the administrators in relation to

the organisation or any other cells. Where a cell is being wound up

and a liquidator is appointed, the powers of the administrators of

the organisation shall cease and shall vest in the liquidator, solely

in respect of that cell.

(15)Any winding up proceedings in relation to an organisation

within which cells are established shall respect the legal status of

each cell as a patrimony separate from the assets and liabilities of

the organisation and other cells of the organisation and from the

assets and liabilities of the organisation not attributable to any cell.

(16)A cell shall be administered by the administrators of the

organisation who may, if authorised by the statute, establish an

administrative committee with reference to one or more cells, and

the administrators may delegate any of their powers to such

administrative committee or committees as the case may be. Such

delegation shall

(a)

not in any way restrict the powers of the

administrators of the organisation in relation to the

cell; and

(b) not include the legal and judicial representation in

relation to the assets and liabilities of the cell.

(17)The provisions of fiscal law which apply to legal persons

shall mutatis mutandis apply to a cell as though the cell were itself

a registered organisation of the same legal form of the organisation

within which the cell is established.

(18)The Minister may make regulations to regulate segregated

cells, in general or for particular legal forms of organisations, and

to regulate any matters related,

including

CIVIL CODE

(a) any formalities which shall be necessary for a cell to

be created by the appropriation of assets already

belonging to the organisation to the cell;

(b) the dissolution of cells;

(c) the transfer of assets of a cell to another organisation,

with or without segregated cells;

(d) the legal effects of such transfers; and

(e) all matters related and incidental thereto.

(19)The Minister may also make regulations to regulate the

establishment of segregated cells having legal personality.

20A. (1) It shall be lawful for the cell of one organisation,

hereinafter referred to as the "transferring organisation", to be

transferred to another organisation, hereinafter referred to as the

"recipient organisation" where

(a) the administrators of the transferring organisation so

resolve in writing pursuant to a power vested in them

by the statute;

(b) the creditors of the cell in the transferring organisation

do not object to this transfer following public notice of

at least thirty (30) days of the intent to transfer;

(c) the recipient organisation has the same legal form and

is of the same purpose or category as that of the

transferring organisation;

(d) the administrators of the recipient organisation resolve

in writing to accept such cell pursuant to a power

vested in them by the statute;

(e) a notice relating to the transfer of the cell is delivered

to the Registrar by the administrators of the recipient

organisation and the Registrar shall

(i)

record the notice of transfer of the cell in the

records of the transferring organisation; and

(ii)

issue a new certificate relating to the transfer of

such cell and record such transfer in the records

of the recipient organisation; and

(f)

it is required, under a special law, to obtain the

approval or consent of any regulatory or governmental

authority for such action, that such consent or approval

is obtained.

(2)The assets and liabilities of a cell shall constitute a distinct

patrimony which shall be distinct from all other assets and

liabilities of the recipient organisation or other cells of such

organisation, if any.

(3)The transfer of a cell shall not entitle the creditors of the

recipient organisation to have recourse to the assets of the

transferred cell or of the transferring organisation.

(4)All rights and obligations of the organisation and any third

parties shall cease to be those of the transferring organisation with

respect to the cell and shall continue unaffected as rights and

obligations of the recipient organisation with respect to the cell by

operation of law with effect from the date of notification to the

Registrar in terms of sub-article (1)(e), notwithstanding the absence

of any agreements or consents that would otherwise be necessary

for the transfer to be effective in law for those purposes.

(5)Upon the completion of the transfer, the administrators of the

recipient organisation shall notify in writing all interested parties of

which they are aware regarding the transfer of such cell from the

transferring organisation to the recipient organisation providing

details of its name and purpose and other material information.

(6)When a cell is transferred it shall retain its name or

designation notwithstanding the transfer of the cell in accordance

with this article but the administrators of the recipient organisation

may enter into a unilateral declaration by public deed and register

this event in the applicable public register.

(7)The transfer of a cell as contemplated in this article shall

constitute a change in fiduciary and shall be governed by the

p r o v i s i o n s o f a r t i c l e 11 2 4 C ( 4 ) o f t h e C o d e r e g u l a t i n g t h e

succession of fiduciary obligations.

20B. (1) It shall be lawful for a cell of an organisation to be

constituted as a new organisation, with all the assets and liabilities

of the cell becoming the patrimony of the new organisation or a

part thereof.

(2)The name of the new organisation shall reflect the name or

designation of the cell as closely as possible to comply with the

applicable law in this regard.

(3)Such action may be taken under such conditions as may be

applicable by the administrators of the existing organisation by

means of a resolution of the board of administrators only if the

statute of the organisation provides for such power.

(4)The cell shall be constituted as a new organisation upon the

observance by the administrators of the requirements applicable to

the creation of a new organisation of the same legal form as the

organisation in which the cell is currently established, including its

registration with the Registrar, and if the cell is created with

reference to members, the members shall sign the statute of the new

organisation, and

(a) the administrators in office shall be the administrators

of the new organisation unless new administrators are

appointed in the constitutive documents when a cell is

being constituted as a new organisation;

(b) the purposes and beneficiaries, if any, of the new

organisation shall be those of the cell;

(c) all rights and obligations of the organisation and any

third parties shall cease to be those of the organisation

with respect to the cell and shall continue unaffected

as rights and obligations of the new organisation by

operation of law with effect from the date of

notification to the Registrar under sub-article (6) and

the registration of the organisation in terms of sub-

article (7) notwithstanding the absence of any

agreements or consents that would otherwise be

necessary for the transfer to be effective in law for

those purposes; and

(d) the constitution of a cell as a new organisation as

contemplated in this article shall constitute a change in

fiduciary and shall be governed by the provisions of

article 1124D of the Code regulating the succession of

fiduciary obligations.

(5)The creditors of the cell being constituted as a new

organisation shall be given the opportunity to object to such

constitution following public notice of at least thirty (30) days of

the intent to such constitution and this only if the new legal form

which the cell is to take creates limitations on the liabilities of the

organisation or its administrators or members which reduce the

rights of the creditors when compared to those prevailing with

reference to the cell.

(6)The administrators shall be bound to notify the Registrar by

means of the prescribed form when a cell no longer forms part of an

organisation under this article and shall surrender any certificate

issued by the Registrar relating to the cell.

(7)The Registrar shall register in the Register the notification of

the removal of a cell from an organisation by the administrators and

shall then, subject to sub-article (8), immediately proceed to

register the new organisation in the Register. The same shall apply

when the cell is being registered in another register pursuant to a

special law.

(8)When the new organisation takes a legal form which is

governed by a special law which provides for registration which

differs from this article, the Registrar shall furthermore issue his

confirmation that he has been notified of the constitution of the cell

as a new organisation and only upon such confirmation shall the

new organisation be registered in the relevant register.

(9)Upon registration, the administrators of the new organisation

shall notify in writing all interested parties of which they are aware

regarding the constitution of the cell as a new organisation.

20C. In accordance with the previous articles, any creditor of a

cell may within fifteen (15) working days of receipt or publication

o f an y n ot i c e i s s u e d u n d e r t h e p r e v i o us ar t i c l e s , b y s w o r n

application in the Court, object to -

(a) the transfer of a cell from the transferring organisation

to the recipient organisation; or

(b) the constitution of a cell into a new organisation,

and, upon good cause being shown that such transfer should not take

effect, the Court shall either accede to the creditor’s demand,

authorise the aforementioned transfer or constitution on sufficient

security being given or give such other orders as it deems

appropriate.

20D. The Minister may make regulations to regulate the transfer

of cells from one organisation to another or the constitution of a

cell as a new organisation, to establish forms and notifications, to

establish rules for the protection of third parties and generally for

the better implementation of the preceding provisions.

20E. For the purposes of the notifications contemplated by

article 20A and 20B it shall be sufficient if the administrators

publish the relative notices as follows

(a) if the organisation has creditors in Malta, in two daily

newspapers published in Malta, one in Maltese and

one in English; or

(b) in the case of an organisation which does not have its

principal creditors in Malta, in two general distribution

newspapers, one published in Malta in the English

language and one published in the country where the

principal creditors of the organisation carry out

business in the language of the place of business.

21. (1) It shall be lawful to convert a legal person in one form

to a l e g a l p e rs o n h a v i n g a d i ff e r e n t f o r m b y f o l lo w i n g t h e

procedures which may be laid down in any regulations made by the

Minister in terms of this article.

(2)When a legal person in one form is converted into another

form it shall not be necessary to dissolve and wind up the legal

person and such legal person shall continue to exist as the same

legal person with all rights and subject to all obligations existing

prior to the conversion.

(3)It shall also be lawful to convert a registered organisation into

a trust for the benefit of the persons beneficially interested in the

organisation by following the procedures which may be laid down

in any regulations made by the Minister in terms of this article.

(4)When a legal person is converted into a trust, the trustee shall

succeed to all rights and obligations of the legal person and it shall

not be required to dissolve and wind up the legal person as required

by the applicable law. The legal person shall be struck off from the

register in which it is registered subject to the conditions as may be

laid down by regulations.

(5)The conversion of a legal person into another form or into a

trust shall not operate to prejudice any creditor or third party in any

manner whatsoever.

(6)It shall also be lawful to convert a legal organisation

registered in the Register of Legal Persons into a cell of another

multi-cell organisation and this following the procedures which

may be laid down in regulations made by the Minister in terms of

this article.

22. (1) It shall be lawful to amalgamate two or more

organisations into one and to divide an organisation into two or

more organisations. For this purpose, unless otherwise provided by

regulations by the Minister in relation to a particular legal form, the

provisions of Title II of Part VIII of the Companies Act shall mutatis

mutandis apply and the functions of the general meeting, in case of

foundations, shall be carried out by the administrators and any

persons whose consent is required for material decisions to be

taken by the administrators.

(2)For the purposes of the application, mutatis mutandis, of the

provisions of article 345 of the Companies Act to the amalgamation

of two or more associations at least one of which is registered, any

extraordinary resolution that may be required in terms of the

Companies Act, shall be an extraordinary resolution taken and

passed by the general meeting of an association in accordance with

provisions regulating the taking and passing of extraordinary

resolutions as found in the statute or constitutive instrument of the

said association, and the provisions of article 135(1) and (3) of the

Companies Act shall not apply

Provided that if the statute or constitutive instrument of the

association does not contain any provisions regulating the manner

in which extraordinary resolutions are to be taken and passed, the

provisions of article 135(3) of the Companies Act shall regulate the

taking and, or passing of such an extraordinary resolution, mutatis

mutandis.

(3) Article 348 of the Companies Act shall not apply to the

amalgamation of two or more associations.

(4)In the absence of specific rules or regulations by the Minister

on a particular legal form, the provisions of fiscal law which apply

to amalgamations and divisions of companies shall mutatis

mutandis apply to amalgamations and divisions of any other legal

form of a registered organisation.

(5)Articles 339 and 370 of the Companies Act regarding the issue

and cancellation of certificates in the context of amalgamations and

divisions shall apply mutatis mutandis.

22A. (1) An organisation formed and incorporated or registered

under the laws of a state within the European Union or the

European Economic Area other than Malta which is similar in

nature to an organisation -

(a) governed by this Schedule; or

(b) governed by any special law which does not, itself or

by virtue of regulations, provide for continuation,

may, if it is authorised to do so by its constitutive instrument or

statute, or by the applicable law in its state of registration, request the

Registrar to be registered as being continued in Malta.

This article shall also apply in the case of such an organisation

incorporated or registered under the law of any other country or

jurisdiction which is approved by notice as may be issued and

reviewed, from time to time, by the Minister.

(2)When registered in Malta, the foreign organisation shall be

registered in the same legal form which it has under the law of the

foreign country or jurisdiction. In the event that a similar form does

not exist under the laws of Malta, the applicant shall select a form

as similar as possible to the one being continued in Malta and shall

designate the form selected.

(3)Where the continuation in Malta of foreign organisations

taking a particular form is regulated by a special law, the provisions

of this article shall not apply.

(4)The continuation in Malta of a foreign organisation shall

require

(a) the adoption of Maltese law to govern the statute from

the time of registration under this Schedule; and

(b) the compliance with

(i)

all matters required for the relevant legal form of

organisation to be established and registered

under this Schedule;

(ii) all matters required under any other applicable

law relating to its activities or its administrators;

(iii) any other procedures or formalities which may

be stated in the statute of the organisation

Provided that if the statute does not address the

subject or vest powers relating to continuation in

any person or body, it shall be presumed that

compliance shall be with a resolution of the

board of administrators or equivalent or if the

organisation is an association of persons, a

resolution of the members having the support

required under the statute or, if silent, with

applicable law for decisions on matters

considered to be extraordinary or special; and

(iv) any requirements which may be prescribed from

time to time.

(5)The Registrar may request such undertakings, activities,

documentation and other information from the applicant to satisfy

himself of compliance with the provisions of this article and the

la w s o f th e r e l e v a nt f o r e i g n c o u n t r y a n d m a y i m p o s e s u c h

conditions as appears appropriate to him for the publicity of such

procedure in Malta and any other relevant state, for the avoidance

of fraud or abuse and for the protection of beneficiaries, members

or creditors of the organisation.

(6)An organisation registered under this Schedule may continue

in any state within the European Union or the European Economic

Area when it is authorised to do so by its constitutive instrument or

statute. In such case, and after the relevant procedur es are

followed, the Registrar shall proceed to terminate the registration

of such organisation under this Schedule on such basis.

(7)The registration fees set out in the Civil Code (Second

Schedule) (Fees) Regulations relating to the registration of an

organisation shall apply mutatis mutandis to foreign organisations

requesting to be registered as being continued in Malta.

23.(1) Except where an organisation is established as a

foundation or an association, public organisations may not be

registered under the provisions of this Schedule. The Minister may,

by regulation, permit or require such registration. The registration

of public organisations or classes of public organisations shall

thereafter be made in terms of this Schedule and in accordance with

such conditions as the Minister may prescribe.

(2) The Minister may by regulation expressly prescribe which

provisions of this Schedule shall apply to public organisations,

generally or where they take a particular legal form, specifically to

such form, and to their administrators, and may also determine or

modify the mode of application of any of the said provisions in such

regulation.

24. (1) In addition to other powers to make regulations as

already provided herein, the Minister shall have the power to make

regulations to -

(a) establish the contents of statutes of organisations;

(b) lay down rules to further regulate organisations which

are not registered;

(c) establish the forms and fees for the registration of any

organisation, the certificates of registration and to

establish the powers of the Registrar in relation to

registration and all related matters;

(d) establish forms and content of annual accounts and

reports and methods of review;

(e) regulate foreign or international organisations carrying

out activities in Malta and the forms and content for

registration and the terms and conditions of registration

including the principles applicable to the determination

of the proper law applicable to the constitutive

instrument and, or the statute of such organisation and the

implementation of provisions of any private international

law treaty or any European Union law on such matters;

(f)

lay down any rules in connection with foundations

when used in commercial transactions including as

collective investment vehicles, as securitisation

vehicles and as shipping organisations and for the

regulation of all matters ancillary thereto including

legal rules applicable to units, umbrella structures and

related matters;

(g) regulate administrators of organisations generally;

(h) regulate the winding up of organisations;

(i)

regulate the redomiciliation

or

continuation

of

organisations;

(j)

lay down any penalties for any breaches of the

provisions of this Schedule;

(k) implement any international convention or any EU

Regulation or Directive, to the extent necessary, to

which Malta has adhered to in the context of

organisations;

(l)

establish the forms and procedures to be used for

appeals;

(m) regulate the conversion of an organisation having one

legal form into that having another legal form;

(n) lay down rules on the powers of the Court in relation to

the interpretation or variation of a statute and the

administration of an organisation;

(o) lay down rules for the better carrying out of any of the

provisions of this Schedule;

(p) regulate the procedure for registration of public

organisations, including the forms and content for

registration, the terms and conditions for registration,

and to establish the powers of the Registrar in relation

to the registration of such organisations and all related

matters;

(q) establish any requirements for notifications to be made

to the Registrar by any legal organisation for the

purposes of this Schedule;

(r) further regulate the segregated cells of organisations,

whether such cells are incorporated as legal persons or

otherwise;

(s) regulate the accessibility or otherwise of the register of

members of associations;

(t)

regulate the procedure for the continuation of

organisations, whether under the laws of Malta or the

laws of another country, including the forms needed

for such continuation, the terms and conditions for

continuation, and to establish the powers of the

Registrar in relation to the continuation of

organisations;

(u) provide for any matter incidental to or connected with

any of the above; and

(v) lay down rules for the better carrying out of any of the

provisions of this Schedule.

(2)The Minister may, with the concurrence of the relevant

minister empowered to make regulations under any other special

law, make regulations in accordance with the provisions of this

Schedule to regulate

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(a) the applicability to forms of legal organisations or

particular types thereof, or in relation to particular

sectors of activity carried out by such legal

organisations, established under such special law;

(b) the mode of their applicability to such forms of legal

organisations; and

(c) all related and ancillary matters, including the powers

of the relevant registrar, any requirements for

notification to such registrar or for registration in the

relevant registry, applicable fees, forms, or otherwise.

(3)The Minister may, by means of regulations, amend any

annexes to this Second Schedule to the Civil Code.

25. Unless the context otherwise requires -

(a) the provisions of this Schedule and any regulations made

thereunder shall only apply in the absence of rules on

the same subject as may be contained in any special

laws applicable to particular forms of legal persons

and in case of conflict between these provisions and

the provisions of any special law, the provisions of the

special law shall prevail;

(b) nothing in this Schedule shall imply the right to

register as a legal person in the Register if the

organisation is already registered in another public

register the effect of which is the grant of legal

personality to such organisation, nor the option to

register as a legal person with a particular legal form

in a register other than that stated in the special law

applicable to that form; and

(c) the Registrar shall not have jurisdiction in relation to

legal persons which are the subject of special laws

applicable to their particular legal form unless

expressly granted such jurisdiction in such special law

or regulations made hereunder. The rights and

remedies applicable to such legal persons shall be

regulated exclusively by the provisions of such special

law and nothing in this Title shall grant additional

remedies in such cases.

Title III

OF FOUNDATIONS AND ASSOCIATIONS

Sub-Title I

Preliminary and Definitions

26.(1) A foundation is an organisation consisting of a

universality of things constituted in writing, including by means of

a will, by a founder or founders whereby assets are destined either -

(a) for the fulfilment of a specified purpose; and, or

(b) for the benefit of a named person or class of persons,

and which are entrusted to the administration of a

designated person or persons.

The patrimony, namely assets and liabilities, of the foundation is

d i s t i n c t f r o m t h a t o f i t s f o u n d e r, a d m i n i s t r a t o r s o r a n y

beneficiaries. The fiduciary obligations in 1124A of this Code shall

be binding upon the foundation and all persons administering it

towards any beneficiaries for the fulfilment of the stated purposes

of the foundation

Provided that the fiduciary obligations shall be subject to such

restrictions or modifications as may be stated in the statute or the terms

of engagement of the administrators, as the case may be.

(2)For the purposes of this Title, the term "foundation" shall

include all organisations, institutes or similarly titled patrimonies

which are set up through the bequest, endowment or appropriation

of assets, by public deed or otherwise and howsoever named, for a

stated purpose or for the benefit of a named person or class of

persons, to be achieved through a designated administrator or

administrators, but shall not include trusts as defined in the Trusts

and Trustees Act.

(3)The assets of a foundation may originate from any lawful

business or activity and may consist of present or future assets of

any nature.

(4)When a testamentary bequest is made having the elements

contemplated in sub-article (1), a testamentary executor or the heirs

of a deceased person shall be deemed to enjoy the power to convert

such bequest into a foundation having the same aims and purposes

as stated in the will, and register the same. The testamentary

executor or heirs shall have the power, which shall be exercised

with the utmost good faith, to draft the terms and conditions of the

statute of the foundation, designate the administrators and regulate

all matters which may appear to them to be relevant to comply with

the requirements of registration and the wishes of the testator.

(5)Foundations in the form of marriage legacies shall continue to

be regulated by the laws in force on the 31st December, 2006

unless they opt to register as foundations in terms of this Schedule

in which case they shall be regulated by the provisions of this

Schedule from such date.

(6)Foundations may be established in one or two legal forms being

ei t h e r f o r t h e b e n e f i t o f b e n e fi c i a r i e s ( c a l l e d " b e n e f i ci ar y

foundations") or for the fulfilment of a specified purpose without

beneficiaries (called "purpose foundations"). Whatever legal form they

take, foundations may have any of the purposes stated in article 1.

(7)In this Schedule

(a) any reference to "pious foundation" includes

(i)

an autonomous pious foundation, that is, an

aggregate of things destined for pious or

religious purposes and established as juridical

persons by the competent ecclesiastical or other

religious authorities;

(ii)

non-autonomous pious foundations, that is,

temporal goods given in any way to a public

juridical person established by the competent

ecclesiastical or other religious authorities and

carrying with them a long-term obligation, such

period to be determined by applicable religious

or national law, and where a long-term

obligation consists of binding the juridical

person, from the annual income, to celebrate

Masses or other religious ceremonies, to perform

other determined ecclesiastical functions, or in

some other way to fulfil the pious or religious

purposes as defined by the applicable religious

laws or rules; and

(iii) "pious or religious purposes" are understood to

be those which concern acts of piety, of the

apostolate, or of charity, whether spiritual or

temporal and include similar organisations of

any religious denomination;

(b) any reference to "ecclesiastical entity" shall be a

reference to an association of persons or a universality

of things which are established by the competent

ecclesiastical or other religious authority so that they

might, in the name of such authority and in accordance

with the provisions of the relevant law, fulfil the

specific task entrusted to them in view of the public

good, including the imparting of religious teaching,

the promoting of public worship and the undertaking

of projects which are appropriate to their character and

governed by their statutes, under the higher direction

of the said authority. Such entities include dioceses,

parishes and all institutes of consecrated life and

societies of apostolic life, and include similar

organisations of any religious denomination.

(8)With effect from the relevant date, it shall not be lawful to

establish a foundation other than by public deed or by will for

marriage legacies or ecclesiastical entities.

(9)The appropriation of assets to a purpose or for the benefit of

beneficiaries written in the form indicating an intent to establish a

foundation but which is not made by a public deed of foundation or

by will, shall be regulated by the provisions relating to unregistered

organisations. In such cases, the persons who may be acting as

administrators or fiduciaries shall be deemed to have the power to

constitute such appropriation of assets into a foundation in

accordance with this Schedule and to register the same.

(10)Until such time as it is registered, it shall not be lawful for

such an organisation to use the word "foundation" in its name and

the Registrar may, upon being notified thereof or upon becoming

otherwise aware of such circumstances, by notice in writing

demand the removal of such word from the name.

(11)It shall be presumed that a mandate regulated by Title XVIII

of this Code or a deposit regulated by Title XIX of this Code, has

been established, where a written instrument is executed vesting a

person with the ownership or possession of property for the

fulfilment of a specified purpose or for the benefit of beneficiaries,

unless there is clear evidence of an intent to create a foundation as

s t a t e d i n s ub - a r t i c l e ( 9 ) an d t o a p p o in t t h e r e c i p i e n t as a n

administrator, or a trust and to make the recipient a trustee.

27. (1) An association is an agreement between three or more

persons to establish an organisation with defined aims or purposes

to be achieved through the dedication of efforts and resources by

such persons and others who may join voluntarily, the patrimony,

namely assets and liabilities, if any, of the association being

disti nct f rom that of the memb ers, its adm inist ratorsor any

beneficiaries

Provided that an association which is not established as a

public benefit organisation may be established between two persons.

(2)Associations are not bound to register as legal persons but are

entitled to do so.

28. Religious organisations constituted as foundations or

associations and established for purposes as defined in applicable

religious laws shall not be subject to or in any manner regulated by this

Schedule and shall be regulated by the relative religious laws. In the

event that they are registered as foundations or associations under this

Schedule they shall also be regulated by the provisions of this

Schedule from such date and in case of inconsistency the provisions of

this Schedule shall prevail.

Sub-Title II

Of Foundations

29. (1) A foundation may only be constituted by virtue of a

public deed inter vivos or by a will.

(2)The deed of foundation shall contain, on pain of nullity, an

endowment of money or property worth at least one thousand and one

hundred and sixty-four euro and sixty-nine cents (€1,164.69) except in

the case of a public benefit foundation in which case the endowment

shall be of at least two hundred and thirty-two euro and ninety four

cents (€232.94).

(3)When the property endowed is not cash or any other asset, the

value of which appears on the face of it, the administrators shall

declare, in a statement which shall be attached to the application

form for registration, that in their considered opinion the property

endowed upon or vested in the foundation has a value of at least the

amount required by this article

Provided that a foundation which has been duly registered shall

not lose its eligibility to remain registered if, subsequent to

registration, the value of its assets is reduced to less than the

amount required by this article.

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(4)The deed of foundation shall state the following

(a) the name of the foundation, which shall include the

word "foundation";

(b) the registered address, in Malta;

(c) the purposes or objects; and in those cases where the

foundation falls within the following specific categories

(i)

the foundation is a public benefit foundation as

defined in article 1(4); or

(ii)

the foundation is a private interest foundation as

defined in article 31B,

an indication of the category of the foundation in the

statute;

(d) the constitutive assets with which it is formed;

(e) (i) the composition of the board of administration and

the name, surname, identification, passport or

registration number, as applicable, nationality and

residential address of the administrators, if any, or

when there are no administrators at the time of

establishment or registration, the person who has the

power to appoint the administrators;

(ii)

the manner in which administrators are

appointed and removed from office and the

duration of their appointment, if any

Provided that if the duration of the appointment of the

administrators is not stated in the deed of foundation,

administrators shall be deemed to have been appointed

indefinitely until they retire or are removed.

(f)

the term for which it is established, if any and if not

stated it shall be presumed to be established for an

indefinite term except in a beneficiary foundation in

which case the provisions of articles 29(7) and 33 shall

apply;

(g) in the case of a foundation, the administrators of which

are non-residents of Malta, the name and address of a

person ordinarily resident in Malta who has been

appointed to act as the local representative of the

foundation in Malta; and

(h

in the case of a beneficiary foundation, either the names

of beneficiaries, or, in the absence of such indication, a

declaration that the foundation is constituted for the

benefit of beneficiaries. Such beneficiaries may be

indicated in a written instrument, which need not form

part of the public deed, called the "beneficiary

statement", signed by the founder and addressed to the

administrators, and the same shall be signed in the

presence of a Notary Public. The use of a beneficiary

statement shall not be permitted in the case of a

beneficiary foundation, or a cell of such a foundation,

when it is established exclusively for the benefit of public

interest beneficiaries.

(i)

where there exist more than one board or committee in

virtue of the deed of foundation, the deed of

foundation shall specify which board or committee

shall be the board of administration;

(j)

when the category of any foundation is for the public

benefit, this shall be stated expressly through the use

of the words "public benefit", "social purpose" or

"public purpose" in the constitutive instrument and in

the statute of the foundation.

(5) The statute shall be signed by the founders and any

person subscribing to the statute after a foundation is

established by means of a public deed or in such other

manner provided for in the statute shall be deemed to

have consented to all the provisions of the statute and

all rules which may have been validly promulgated by

the foundation until such date.

Where a foundation is being established as a public benefit

foundation involving more than three persons as

promoters, the signature of three persons shall be

sufficient to indicate the consent of all founders at the

time of establishment. A document containing a list of

all founders shall be sufficient evidence of their

consent. The Notary Public shall not be bound to

ascertain that the three persons have been authorised

by the founders to appear on the deed but shall rely on

the document submitted to him by the three persons

containing a list of all founders as evidence of their

consent. Notwithstanding the provisions of any other

law, in respect of the persons listed in the document

containing the list of all founders, their name, surname

and identity card, passport number or registration

number, as applicable, shall suffice

Provided that the Notary Public who receives any deed

to which this sub-article refers shall record in the deed

a declaration by the three persons that they are

authorised by the founders to state their names,

surnames and identity card, passport number or

registration number, as applicable, in the document

above referred to and the said Notary Public shall warn

the said three persons of the importance of the

truthfulness of such declaration. The document shall

be attached to the public deed establishing the

foundation

Provided further that any person named as a founder in a

document as referred to above who claims that he did not authorise

the three persons to include his name and surname and identity

card, passport number or registration number, as applicable, in the

document shall, within sixty (60) days of his becoming aware of his

inclusion in the document, be entitled to register a declaration to

that effect in the Register of the foundation and in the absence of

any written evidence to the contrary which may be produced in case

of dispute on such matter, he shall not be considered ever to have

been a founder.

(6)When administrators are designated in the statute, unless they

consent on the said statute itself, the written consent of the

administrators must be delivered to the Registrar prior to registration

of any foundation. When the administrators are not designated in the

statute, their written consent must be submitted to the Registrar on the

notification of their appointment.

(7)(a) It shall not be lawful to state a term for a foundation in

excess of one hundred and twenty-five (125) years except in the

following cases in which a foundation may have an unlimited

duration

(i)

public benefit foundations; or

(ii)

foundations governed by article 31B(4), (5) and

(6).

(b) When no term is specified in the deed of a foundation,

a foundation shall be considered to be valid for one

hundred and twenty five (125) years from its

establishment except in the cases referred to in

paragraph (a).

(c) Saving as otherwise provided, in the event that a

longer term is stated in a deed of a beneficiary

foundation, it shall terminate on the hundred and

twenty fifth anniversary from when it came into

existence. The limitation on duration also applies in

the case where a foundation results from the

conversion of another registered organisation or of a

trust in accordance with this Schedule and any

regulations or from the transfer of a patrimony by a

foundation to another foundation or trust. In such a

case periods of existence shall be considered

cumulative.

(8)Article 1753(1) of this Code shall not apply to endowments in

favour of registered foundations.

(9)Foundations established in accordance with this Schedule are

not prohibited by articles 331, 757 to 761 and 1776 of this Code.

(10)Article 586 of this Code shall not affect any term of a

foundation because it relates to the inheritance of the founder or

because the provisions relating to property belonging to the

foundation are to take effect after the death of the founder.

(11) (a) The provisions of this Schedule shall apply to

dispositions in wills in favour of foundations, whether

such foundations are created inter vivos or by

testamentary disposition, and this notwithstanding the

provisions of articles 688, 693 and 695 and other

similar provisions of the Civil Code.

(b)

The administrators of a foundation may not renounce to a

benefit to the foundation under a will pursuant to a

disposition in its favour except with the prior consent

of the beneficiaries or in the case of a purpose

foundation, the Court

Provided that nothing in this sub-article shall oblige any

administrator to accept a benefit under a will or an

endowment if such administrator has reason to suspect

that the same consists of assets derived from any

criminal offence or involves money laundering or the

funding of terrorism

Provided further that if the administrator is not willing to

accept to act as an administrator or to continue in such

office, the provisions of article 35 shall apply.

(12)The provisions of this Title shall apply to all foundations

existing on the coming into force of this provision but existing

foundations will not be obliged to comply with the requirements in

sub-article (2) and shall comply with the requirements of sub-

article (3) only upon registration. Nothing in this Schedule shall

render invalid anything done prior to the coming into force of this

law which was valid when done.

(13)The Registrar shall register an existing foundation without

its name being changed even if this is not in conformity with the

requirements of sub-article (4)(a) or any other article imposing

rules on the names of organisations.

(14)The Minister may make regulations permitting foundations

to use alternative words instead of the word "foundation" in their

name.

(15)The provisions of this article shall apply mutatis mutandis in

the case of foundations governed by any directive or regulation of

the European Parliament and the Council regulating the

establishment and operation of foundations as may be in force at

any time.

29A. (1) Subject to the provisions of sub-article (2), in the case

of a foundation governed by Maltese law, where the laws of Malta

contain provisions with regard to the following matters -

(a) the protection of minors or incapable parties;

(b) the personal and proprietary effects of marriage;

(c) succession rights, whether testate or intestate,

especially the indefeasible shares of spouses,

ascendants and descendants,

hereinafter referred to as "rules of mandatory application" or

"mandatory rules" which cannot be derogated from by a voluntary

act, such laws shall prevail over the terms of the foundation and

related endowments unless otherwise expressly provided in this

Schedule or in applicable law.

(2)To the extent that there exist rules of mandatory application,

t h e c o u r t s sh al l a p p l y s u c h m a n d a t o r y r u l e s su b j e c t t o t h e

provisions of article 29B.

(3)When a foundation is governed by Maltese law and has no

connection to Malta by reason of the domicile of the founder at the

time of the endowment of the property to the foundation or the situs

o f t h e p r o p e r t y, w h e n i m m o v a b l e , a n y r u l e s o f m a n d a t o r y

application shall not apply in any manner. In such cases no regard

shall be had to

(a) the domicile, habitual residence, registration,

authorisation or place of business in Malta of any

protector or any person rendering administration,

accounting or other services to the foundation; or

(b) the fact that the proper law of the foundation is

Maltese law and the place of registration is Malta; or

(c) the situs of property in Malta, when movable; or

(d) the fact that the place of execution of the deed of

foundation, any documents relating to the foundation

or relating to the foundation property or other

transaction documents is Malta.

(4)In the case of a foreign foundation, the rules of mandatory

application shall only apply to any relevant endowment to the

foundation when the founder is domiciled in Malta at the time of

creation of the foundation or the making of the endowment, subject

always to the rules stated in article 29B.

(5)In the case of a foreign foundation, when the founder of such

a foundation is not domiciled in Malta at the time of the creation of

the foundation or the making of the endowment, the provisions of

this Schedule shall apply only in so far as they regulate the

continuation or otherwise in Malta of the foundation or the

endowment.

(6)To the extent that there exist rules of mandatory application in

the law applicable in the circumstances in terms of Maltese private

international law, the courts of Malta may apply such mandatory

rules subject to the provisions of article 29B.

(7)When a court is requested to recognise a foreign judgement

which enforces any rules of mandatory application as referred to in

sub-article (6), the court may accede to such request subject to the

provisions of article 29B.

29B. In order to ensure that the provisions of applicable law

which cannot be derogated from by voluntary act are applied in a

manner which preserves the endowment to the foundation and its

terms as far as possible, the following rules shall apply

(a) the application of the mandatory rules shall not

produce the failure or invalidity of the endowment or

the foundation, and where possible, the endowment

and the foundation shall continue under the same terms

in relation to property which is unaffected by such

mandatory laws. Subject to any order of the court, the

affected property shall be held by the foundation for

the founder absolutely, or if he is dead, for his heirs;

(b) the administrators shall be empowered to

(i)

vary the terms of the foundation in so far as

relates to the nature or the extent of benefit or

the endowment; or

(ii)

do such acts as are necessary and legally

permissible

Provided that the beneficiaries or the purpose of

the foundation derive the benefits in accordance

with the intentions expressed by the founder in

the deed of foundation in a manner compatible

with the mandatory rules and any property which

becomes free from the terms of the foundation

for any reason shall be held by the foundation

for the founder absolutely, or if he is dead, for

his heirs;

(c) for the purposes of resolving conflicts between the

endowment and the foundation and any mandatory

rules and to enable the continuance of the foundation

as specified in paragraphs (a) and (b), the terms of the

foundation or the endowment, where silent, shall be

deemed to include

(i)

the power, without any obligation to do so, of

the administrator to reduce the foundation assets

and return all or part of them to the founder or

the estate of the founder so as to achieve

compliance with such provisions of law;

(ii) the power of the administrator to enter into

arbitration and mediation agreements and to

reach a compromise to disputes and claims by

third parties; and

(iii) the power to seek directions from the Court on

such matters

Provided further that such powers shall be

exercisable notwithstanding any contrary

provisions of the deed of foundation or the

endowment and, provided the administrator acts

honestly, in good faith and reasonably, such acts

shall not constitute a breach of any fiduciary

duties and any applicable law;

(d) the property of the founder which is not endowed to

the foundation shall first be utilised, to the extent

possible, to meet the claims of any person seeking to

invalidate or reduce an endowment;

(e) notwithstanding

any

other

applicable

law,

the

foundation may meet a valid claim being made against

the foundation property, whether voluntarily or as a

result of a court direction, order or judgement, by a

payment of value in money and shall not be obliged to

return property endowed to the foundation in kind;

(f)

any person who succeeds in reducing the property of

the foundation or obtains a court order to invalidate an

endowment in whole or in part or who enjoys the

benefits of an arrangement with the foundation as

provided in paragraph (c)(i), shall forfeit the benefits

under the foundation, unless the terms of the

foundation expressly state otherwise or the

administrators consider it unreasonable in the

circumstances and obtain the consent of the Court to

maintain in force rights in favour of such person

subject to such conditions as the Court may consider

appropriate;

(g) in any event and notwithstanding any provision of law,

a foundation shall not be subject to an obligation to

pay or return more than the foundation property held

by it, after deducting any fees and costs, and shall not

be subject to any obligation for any distributions made

by it, in good faith prior to having written notice of

any claim.

29C. Article 958R of this Code shall apply to foundations and

endowments thereto mutatis mutandis.

30. (1) It shall be the obligation of the administrators of any

foundation established after the relevant date, other than pious

foundations, marriage legacies and ecclesiastical entities

constituted as foundations, to register such foundation in terms of

this Schedule within the periods stated in this Title

Provided that when no administrators are designated, the

foundation shall be registered by any of the persons mentioned in

article 31(2), (3) and (4) or by the person designated in the statute

as having the power to appoint the administrators.

(2)After a foundation has been established by public deed in

accordance with this Sub-Title of this Schedule or at any time after

the opening of succession in case of a foundation established by

will, the provisions of article 14 shall apply to any acts carried out

by the administrators on behalf of a foundation prior to its

registration and in such cases the administrators shall not be

personally liable in accordance with article 17(2) if

(a) the actions carried out implement what is expressly

required of them in the public deed or will; and

(b) the foundation is registered within the period stated in

article 31.

31.(1) For the purpose of registration of a foundation the

prescribed application form shall be submitted to the Registrar

together with

(a) in the case of a private interest foundation as defined in

article 31B

(i)

an authentic copy of the constitutive instrument

and the statute without the beneficiary

statement, if any;

(ii) save as otherwise provided in this Schedule, the

prescribed Note of Initial Registration; and

(iii) the written consent of the administrators, if any;

and

(b) in all other cases, an authentic copy of the constitutive

instrument and the statute and the written consent of

the administrators, if any;

(2)Where the foundation is created by a public deed an authentic

copy thereof is to be delivered by -

(i) the founder; or

(ii) after having accepted to act as such, the

administrators; or

(iii) the Notary publishing the deed.

(3)Where the foundation is created by a will, an extract of the

relevant part, duly authenticated, is to be delivered by a

testamentary executor or by the heirs

Provided that a testamentary executor may deliver the same even

before being confirmed by the Court to act as such.

(4)Where the foundation is created by a secret will the said

extract is to be delivered by the Notary publishing the secret will or

by the heirs.

(5)The heirs mentioned in sub-articles (3) and (4) who do not

intend to declare or who have not yet declared their intention to

accept the inheritance or who have accepted the inheritance with

the benefit of inventory shall nonetheless be liable for the delivery

of the said extracts but such delivery shall not of itself be evidence

of the acceptance or the unconditional acceptance of the

inheritance.

(6)The said delivery is to be effected within three months which

period is to run -

(a) if the foundation is created by a public deed, from the

date of such deed;

(b) if it is created by a public will, from the date of death

of the founder; and

(c) if it is created by a secret will, from the date of the

publication of the will.

(7) The said delivery may be made by any one of the persons

men tion ed i n sub -articl es (2 ), ( 3) and (4), or by the person

designated in the statute as having the power to appoint the

administrators either personally or by an authorized agent.

(8) On receipt of the documents mentioned in sub-article (1), the

Registrar shall -

(a) register the foundation, on being satisfied that all the

provisions of this Sub-Title have been complied with;

or

(b) refuse to register the foundation, informing the

applicant in writing of the reasons for such refusal

Provided that, the fact that the Registrar registers a

foundation in the absence of compliance with any

requirement under any special law, shall not exempt

such foundation or its administrators from their

obligation to comply with such law or to be subject to

any penalties or proceedings which may arise from the

breach of such special law.

(9) The Registrar shall have the right to require any information

from any person, if such information is deemed by him to be

necessary for registration of a foundation but, in the case of a

private interest foundation as defined in article 31B, shall not be

entitled to request a copy of the beneficiary statement from the

administrators or the Notary Public

Provided that nothing in this sub-article shall limit any powers

of the Malta Financial Services Authority under applicable law.

(10) If the delivery prescribed in sub-article (1) is not made

within the period established in sub-article (6), the persons

mentioned in sub-articles (2), (3) and (4) and the person designated

in the statute as having the power to appoint the administrators shall

be liable to a penalty, payable to the Registrar, of two hundred and

thirty-two euro and ninety-four cents (€232.94) each

Provided that no person shall be liable for failure to observe this

obligation if he is unaware of the death of the founder or any other

relevant fact

Provided further that in case of a public benefit foundation which is

enrolled in accordance with the Voluntary Organisations Act , the

penalty above referred to shall be reduced to twenty-three euro (€23).

(11)The provisions of article 636(2) and (3) of the Code of

Organization and Civil Procedure shall apply to the extracts

contemplated in this article.

31A. Any amendments to the statute of a foundation or changes

in a foundation after a foundation has been registered, shall be

registered in the Register as follows

(a) notwithstanding what is stated in the statute, if there is

a form which is prescribed, by the filing of such form

and such amendments or changes shall not require a

public deed or enrolment in the records of a Notary

Public;

(b) notwithstanding the provisions of any other law, any

other amendments or changes not the subject of

notification through the filing of a prescribed form

shall be made by resolution, private writing or notarial

deed in accordance with the statute and unless made by

a notarial deed, shall be enrolled in the records of a

Notary Public and shall be registered in the Register

by the Notary Public publishing or enrolling the deed,

as the case may be, within fourteen days from the date

of publication of the deed or its enrolment in his

records, as the case may be;

(c) the duty of the administrators with regards to

amendments to the statute, shall be as prescribed from

time to time; and

(d) in the case of a private interest foundation as defined in

article 31B, if such amendment affects any matter

referred to in the Note of Initial Registration referred

to in article 31, which is not already otherwise

addressed in a prescribed form filed in terms of

paragraph (a), an Amended Note of Initial Registration

shall also be submitted to the Registrar.

31B. (1) Private interest foundations may carry out the trading

activities referred to in

(a) this sub-article and sub-articles (2) and (3); and

(b) sub-articles (4), (5) and (6) without limitation

Provided that private foundations may also establish

another legal organisation to carry out acts of trade or

trading activities to achieve and promote their

principal purposes and objectives. They may establish

another legal organisation to carry out any acts of trade

which are not related to their principal purposes and

objectives only when this power is expressly granted

in their statute.

For the purpose of this article, a private interest foundation

means a foundation, which neither qualifies as a public benefit

foundation nor is it established for a public or social purpose and

which is not a voluntary or non profit organisation but which can be

established for a legitimate purpose and any reference to a foundation

in terms of this article shall be construed as a reference to a private

interest foundation.

(2)Notwithstanding the provisions of sub-article (1), a private

interest foundation

(a) may have additional objectives and powers contained

in its statute to enable it to carry out any such activities

referred to in this article to achieve its purposes or to

protect its assets and, or to otherwise comply with

legal requirements; and

(b) shall, in any case, be deemed to have all the powers to

CIVIL CODE

do anything which is necessary or ancillary to achieve

the said purposes.

(3)In addition to the activities referred to in sub-articles (1) and

(2), a private interest foundation may

(a) hold assets as an investment portfolio and to do all

such acts ordinarily carried out in such context;

(b) carry out any specific actions with shares it may hold

as may be designated in the statute of the foundation

for the achievement of any designated purpose,

transaction or for the protection of any designated

interests;

(c) own, establish, grant and license a franchise, a trade

mark or other intellectual property which gives rise to

income;

(d) own income which may be made payable to voluntary

organisations which own, administer or otherwise

operate an innovative technology arrangement as

defined in the Malta Digital Innovation Authority Act;

and

(e) own commercial property or a ship or aircraft.

(4)For the purposes of sub-article (3)

(a) a foundation shall act as the passive owner of such

assets, the administration of which is delegated to a

third party, including another legal organisation with

its own board of directors or a third party under a

fiduciary agreement or temporary title; and

(b) the carrying out of acts of trade of any kind by the

delegate with assets belonging to the foundation shall

not imply that the foundation is itself carrying out such

activities.

For the purpose of this sub-article "passive" shall mean that the

foundation is not involved in the day to day operations of the relevant

activity but shall not imply limitations on the foundation or its

administrators from exercising or protecting the rights of the

foundation in relation to any of its purposes or assets.

(5)Subject to any authorisations, registrations or notifications as

may be necessary under applicable laws, a foundation may operate

(a) as a collective investment vehicle, and issue units to

investors therein, for the holding of a common pool of

assets, the management of which is delegated to a third

party;

(b) as a pension or employee benefit arrangement;

(c) as a securitisation vehicle or for the purpose of

supporting

or

implementing

a

securitisation

transaction, including to hold any assets in connection

therewith, borrow monies against the issue of bonds,

establish security or collateral and do all relative and

ancillary acts;

(d) as a retirement scheme or fund;

(e) for the holding, administration, development, or sale

of undivided property originating from an inheritance

deriving from one or more deceased person or persons

common to the beneficiaries for the sole purpose of the

division or liquidation of the common estate;

(f) to issue tokens and carry out any trading activity

resulting from such foundations owning, administering or

otherwise operating an innovative technology

arrangement, as defined in the Malta Digital Innovation

Authority Act; or

(g) for any other purpose as may be prescribed in a notice

issued by the Minister under this Schedule.

(6)A foundation may be used in the context of the following

transactions and any transactions connected or ancillary thereto

(a) securities offerings, whether to the public or for

private placement, portfolio management and custody

of investment instruments;

(b) the grant of real or personal security interests,

including hypothecs, mortgages, privileges, pledges

and guarantees;

(c) collective loan agreements and other multi-creditor

banking facilities;

(d) insurance policies and the payment of proceeds

thereunder;

(e) timeshare and multi-property structure; and

(f)

such other commercial transactions as may be

prescribed in a notice issued by the Minister under this

Schedule.

(7)When a foundation is established with segregated cells, the

foundation may itself render services against remuneration in

favour of any of its cells which are established for the benefit of

beneficiaries or for purposes or both.

(8)Whenever the activities of a foundation intended to be carried

out under sub-articles (4), (5) and (6) are subject to laws regulating

credit or financial institutions, insurance undertakings, investment

services or funds, trusts and trustees, corporate or other licensable

fiduciary institutions, such foundation shall only be permitted to

register with the prior written consent of the Malta Financial

Services Authority, where applicable in terms of law and when it is

the competent authority under such law, or may be permitted by

such authority to register but not to carry out activities, until it is

authorised by means of a notice issued by such authority.

(9)Where such activities are exempt from registration in terms of

sub-article (8), the Registrar for Legal Persons may request

confirmation of such exempt status from the Malta Financial

Services Authority prior to registering the foundation in terms of

the provisions of this Schedule.

(10)Nothing in this article shall prohibit foundations regulated

by European Union law from carrying out acts of trade or trading

activities if they are permitted to do so under such law.

31C. (1) The following registration documents are accessible to

the public, except as stated in sub-article (2)

(a) the application form;

(b) any forms notified to the Registrar under the Civil

Code (Second Schedule) (Notifications and Forms)

Regulations, including the Note of Initial Registration,

as the same may be amended from time to time, except

the following forms

(i)

Form DD relating to assets added to an

organisation by additional endowments, as the

same may be amended or re-numbered from time

to time;

(ii)

such other forms stated in a notice issued by the

Minister;

(c) the written consent of any administrator to act as

administrator; and

(d) the Certificate of Registration,

as well as any changes made thereto.

(2) Unless the founder has expressly waived confidentiality

under sub-article (3), in the case of a private foundation, all

documents, statements or declarations submitted to the Registrar,

including those accompanying notified forms referred to above, shall

not be accessible to third parties without the prior written consent of

the administrators or the supervisory council of the foundation, if

any, duly authenticated by a Notary Public, or with the permission of

the Court and only when the Court is satisfied that the person

requesting such information has a legitimate interest therein

Provided that

(a) nothing in this article shall render confidential any

transactions which are subject to registration in the

Public Registry according to law;

(b) unless

the

founder

has

expressly

waived

confidentiality under sub-article (3), the applicant

shall be obliged to submit a Note of Initial

Registration signed by the administrators, the founder

or by the person designated in the statute as having the

power to appoint the administrators as a condition to

registration and this shall be accessible to the public;

and

(c) articles 47, 48, 49 and 50 of the Trusts and Trustees

Act shall apply to the administrators of a private

foundation.

(3)The founder may, by means of a statement in the statute or by

a notarially authenticated notice in writing, filed with the Registrar,

declare that all registration documents in relation to a private

foundation are accessible to third parties, and the Registrar shall act

accordingly. Such declaration shall be filed in the Register by the

Registrar and shall be accessible to third parties.

(4)The Registrar shall implement procedures and take all

measures to ensure the privacy of all documents relating to a

private foundation which are not accessible to the public.

(5)A person dealing with administrators of a private foundation

in relation to foundation property need not

(a) enquire into the terms of the foundation or of any

endowment; or

(b) obtain the consent of the beneficiaries or any other

person, and shall, where he acts in good faith, be

entitled to rely on declarations made by the

administrators with regard to any matters therein

stated.

(6)The administrators may furnish to any person with whom they

are dealing in the interest of the foundation, a certificate containing

the following information without being in breach of any

confidentiality obligations

(a) that the foundation exists, is registered and that the

Note of Initial Registration is complete and factually

correct;

(b) the identity and address of the current administrators

in office;

(c) that the administrators, or any of them, are duly

authorised and empowered to carry out the relevant

transaction and have obtained all necessary internal

consents, if any;

(d) the revocability or irrevocability of the endowments of

the foundation and, if revocable, that the endowments

have not been revoked, or if any have been revoked,

which ones have been revoked since the last accounts

made available; and

(e) the latest accounts of the foundation.

(7)When there is more than one administrator, a certificate may

be signed and authenticated by any administrator.

(8)Without prejudice to any liability under applicable law or to

other fine or penalty which may be applicable under any other law,

any administrator who issues any certificate containing any

statement which he knows or ought to know is false shall be guilty

of an offence and shall on conviction be liable to the punishment of

imprisonment for a term not less than thirteen months and not

exceed four years or to a fine (multa) of not less than one thousand

and one hundred and sixty-four euro and sixty-nine cents

(€1,164.69) but not more than two thousand and three hundred and

twenty-nine euro and thirty-seven cents (€2,329.37) or to both.

32. (1) A foundation may be established for the achievement

of a lawful purpose, including a social or public benefit purpose,

without beneficiaries. The Registrar shall not register such a

foundation unless the purpose is indicated in clear terms.

(2) The founder may, at any time amend or add to the deed of a

p ur p ose f ou nd a ti on , i nc lu di ng i ts pu r po s e , b y m e a n s o f an

amendment to the statute done in accordance with the provisions of

the statute, if any, and, or any applicable law. The statute may

expressly permit any other body or person to amend the statute in

the manner and subject to the conditions as may be stated. After the

death of the founder, unless the statute provides for the manner in

which amendments may be made, the Court may authorise such

amendment or addition to the deed of a purpose foundation,

including its purpose, on the application of

(a) any administrator;

(b) the supervisory council;

(c) any interested party, or

(d) in the case of a public benefit foundation, the State

Advocate

Provided that a public benefit foundation may not have

its purpose changed or extended to other purposes

which are not also social or public purposes.

(3)The deed of foundation may indicate the way in which the

m o n e y s o r p r o p e r t y o f t h e f o u n d a t i o n m ay b e u s e d f o r t h e

attainment of the purpose for which the foundation is established

and when no such indication is made the administrators may

exercise their discretion.

A pu r p ose f o u nd a t i on m a y u se m o n e y o r pr o p e r ty of t he

foundation to acquire shares or interests in other organisations

when the principal purposes and objectives of the other

organisations are related or ancillary to the purpose foundation or

established to implement the purposes of the said foundation

Provided that, if an endowment of shares or interests in an

organisation is made to a purpose foundation to help the foundation

and its principal purposes and objectives, such purposes and

objectives of the organisation need not be related or ancillary to the

purposes of the foundation.

(4)The deed of a foundation may indicate how the assets of the

foundation are to be applied if its purpose is achieved, exhausted or

becomes impossible and when no such indication is made, the

administrators or the supervisory council may make specific

proposals to the Court for authorisation to use or dispose of the

assets, unless the purpose is amended in terms of sub-article (2), or, if

the founder is no longer alive, the administrators unanimously

determine that the foundation is to be terminated and the proceeds

distributed in accordance with this article.

(5)In the case of a purpose foundation established for a public

benefit, the indication of alternative purposes must refer to other

public benefit organisations.

(6)Any disposal of assets pursuant to the statute of the

foundation shall be made on the following basis

(a) in the case of a purpose foundation established for a

public benefit to another public benefit organisation

having the same or a similar purpose

Provided that when an organisation is controlled by the

Government, a religious organisation or a political

party then the disposal of assets may be made in

favour of the Government, another religious

organisation of the same denomination or the relevant

political party, as the case may be; and

(b) in the case of a purpose foundation established for any

other purpose in accordance with the deed of

foundation.

(7)Any disposal of assets by the Court under sub-article (4), shall

be made on the following basis

(a) if the purpose foundation is not established for a

public benefit purpose, in the absence of express

direction in the statute, the assets shall be paid out to

the founder or his heirs;

(b) if the foundation is a public benefit foundation, in the

absence of express direction in the statute in

accordance with sub-article (6)(a), the assets shall be

disposed of in favour of

(i)

the founder, if it is also a public benefit

organisation, irrespective of its purpose; or

(ii) if sub-paragraph (i) does not apply, another

public benefit organisation with the same or

similar purposes but the recipient shall make

reasonable efforts to achieve the original

purposes of the endowments made to the original

organisation

Provided that when the purposes are the

advancement of religion or the carrying out of a

religious vocation or there are indications in the

original endowment that this was intended for a

religious organisation, to any pious foundation

or ecclesiastical entity, and in such case of the

appropriate denomination; or

(iii) if the Government of Malta is the founder, to the

Government of Malta if the purposes are for the

general public benefit or utility;

(c)if the foundation has a combination of purposes, being partly

private benefit and partly social or public purposes, the assets shall

be paid out as follows

(i)

unless the social or public purposes have already

been achieved or are specifically determined

such that their extent can be calculated, the

assets shall be paid out, in accordance with

paragraph (b) in such manner that reasonably

proportionately reflects the benefit intended for

the social or public purposes as may be approved

on application to the Court; and

(ii) the balance shall be paid out as stated in

paragraph (a); and

(iii) where the assets are not immediately payable

due to the fact that payment is subject to a

condition, a contingency or a discretion, they

shall be retained until the condition or

contingency occurs or the discretion can be

exercised;

(d) where the foundation is a pious foundation, marriage

legacy or ecclesiastical entity which is constituted as a

foundation and which qualifies as a long-term

obligation, in the event that there may be any

remaining assets from the sum dedicated to the

performance of the long-term obligation after it has

been performed, this shall be paid out as may be

determined in accordance with Canon law and other

legislation governing religious organisations.

(8)When the dominant purpose of a foundation is to support a class

of persons which constitute a sector within the community as a whole,

because they suffer from a particular social, physical or mental

disability it shall be permissible to indicate one or more individuals

who suffer from such condition as named beneficiaries.

Notwithstanding such indication, the foundation shall be considered to

be a public benefit purpose foundation on condition that after the death

of such beneficiaries, the residual property of the foundation is, by the

express terms of the statute, to be held either for the exclusive benefit

of the designated class of beneficiaries or for another foundation

established for a similar social purpose which qualifies as a public

benefit.

(9) Notwithstanding the provisions of this article and other

provisions of this Schedule, a "purpose foundation" which is not

established as a public benefit foundation shall be subject to the

provisions of Column A with the modifications in Column B which

prevail over its legal form in deference to its non-public benefit

purposes

Column B

Column A

The foundation must have an initial

29(2)

endowment of money or property of at

least one thousand and one hundred and

sixty four euro and sixty nine cents

(€1,164.69);

The foundation may not be established for

29(7)

more than one hundred and twenty-five

years (125) except where expressly

permitted by this Schedule;

This sub-article shall not apply to the

32(4)

foundation and if the foundation

terminates because the purposes have not

been amended in accordance with the

statute, the assets of the foundation shall,

subject to the terms of the foundation,

devolve on the founder or his heirs at law;

Any endowments to the foundation may

34(6), (7)

be expressed to be revocable;

The foundation may have only one (1)

35(2)

administrator and the administrator or

administrators shall be subject to or

otherwise require authorisation by the

Malta Financial Services Authority under

article 43 of the Trusts and Trustees Act in

accordance with its terms;

The foundation may be constituted in a

40(9)

revocable manner;

This article shall not apply and article

60(1)

60(2) shall apply in lieu thereof.

(10)Without prejudice to the provisions of this article, a

provision in the statute granting the power to the administrators to

apply the proceeds to another public benefit purpose when the

stated purpose has been achieved, exhausted or is no longer

possible shall be valid.

32A. (1) Without prejudice to the ability of any public benefit

foundation to carry out acts of trade in the ordinary course of

carrying out its principal purposes and objectives, in terms of

article 38(2) of the Voluntary Organisations Act, where applicable,

a foundation shall not be established to carry out acts of trade or

trading activities on a regular or continuing basis nor shall it do so

in practice, except as permitted under this article and when the

proceeds of such trading activities are attributable to a social or

public purposes.

(2)Notwithstanding the provisions of sub-article (1) a foundation

may own, acquire or be endowed with shares or other interests in

another legal organisation and may generally

CIVIL CODE

(a) carry out any specific actions with shares it may hold

as may be designated in the statute of the foundation

for the achievement of its main purposes and

objectives;

(b) subject to such authorisations as may be necessary

under applicable laws, issue tokens and carry out any

trading activity resulting from such foundations

owning, administering or otherwise operating an

innovative technology arrangement as defined in the

Malta Digital Innovation Authority Act; and

(c) seek the achievement of designated social purposes

which may include health and education

Provided that this shall not apply to management

agreements, licences or otherwise to third parties for

profit

Provided further that

(i)

when the foundation owns a shareholding in an

organisation established to trade, the trading

organisation shall not be restricted in its

activities by the purposes of the foundation in

any manner, unless otherwise stated in the

statute of such trading organisation;

(ii)

when the foundation qualifies as a voluntary

organisation and owns shares or other interests

in another legal organisation established

pursuant to the provisions of article 38 of the

Voluntary Organisations Act, the provisions of

sub-article (4) of the said article 38 shall apply

but the relevant limitations shall not apply to

persons who are not involved in the foundation

and are not related parties thereto; and

(iii) the purposes of the holding, acquisition or

endowment of shares or other interests shall not

be to enable the foundation to speculate with

such assets.

For the purposes of sub-paragraph (ii), "related parties" shall

mean persons related by consanguinity or affinity in the direct line in

any degree or in the collateral line up to the third degree inclusively,

and shall also include any person involved in the same business under

any legal structure or otherwise.

(3)With reference to a public benefit foundation

(a) its statute may contain additional objectives and

powers to enable it to carry out any such activities, to

achieve its purposes, to protect its assets and otherwise

to comply with legal requirements; and

(b) it shall, in any case, be deemed to have all the powers

to do anything which is necessary or ancillary to

achieve the said purposes.

(4)It shall be lawful for -

(a) the administrators or a person designated in the

statute;

(b) any public benefit beneficiary, in the case of public

benefit foundations; or

(c) the State Advocate, in the case of a public benefit

foundation and, or the Commissioner for Voluntary

Organisations in the case of foundations which are

voluntary organisations enrolled in accordance with

the Voluntary Organisations Act,

to seek directions from the Court as to whether the actual or proposed

activity of the foundation constitutes regular or continuing trading

activity beyond what is permitted under sub-article (1) and the Court

may, in such cases, issue directives to the foundation on the manner

in which it shall carry out activities consistently with this article,

including a direction to amend its purposes and objectives, but any

such order shall not affect or invalidate acts already lawfully carried

out or interrupt lawful acts in progress.

(5)The Court shall also consider the following principles and

circumstances

(a) in case of a public benefit foundation, the avoidance of

speculation which may affect the assets of the

foundation and the achievement of its purposes;

(b) the creation of liabilities which may impinge on the

achievement of the purposes of the foundation;

(c) the protection of third parties dealing with the

foundation; and

(d) the competence of the administrators to carry out such

activities and the extent of the delegation of such

functions to third parties.

(6)When a public benefit foundation is established with

segregated cells, the foundation may itself render services against

remuneration in favour of any of its cells which are established for

the benefit of its beneficiaries or its purposes or both.

(7)Nothing in this article shall prohibit public benefit

foundations regulated by European Union law from carrying out

acts of trade or trading activities if they are permitted to do so

under such law

Provided such acts or activities are carried out solely to achieve

and promote the principal purposes and objectives of the

foundation.

33. (1) A foundation may be established for the private

benefit of one or more persons or of a class of persons and such

beneficiaries shall enjoy such benefits, and shall have legally

enforceable rights against the foundation, as may be stated in the

terms of the foundation and the provisions of this Schedule.

(2)The interest of the beneficiary under a foundation shall be

deemed to be movable property even if it includes immovable

property.

(3)The benefit under a foundation is personal to the beneficiary

and subject to any applicable laws and only as stated in the terms of

t he fo und a ti on , cred it or s , s po us e s , he ir s or l e gat e e s o f the

beneficiary may have rights only to the extent of the beneficiary’s

entitlements under the foundation and have no other rights in

relation to the assets of the foundation. Unless otherwise provided

for in the deed of foundation expressly, by the type of benefit

granted to the beneficiary or otherwise, upon the death of the

beneficiary the beneficiary’s entitlement under a foundation shall

not devolve to his heirs but shall terminate.

(4)Beneficiary foundations must name

(a) the class of persons entitled to benefit as clearly and as

fully as possible; or

(b) the person or persons entitled to benefit as clearly and as

fully as possible, by specifying first names, surnames,

number of a legally valid identification document,

father’s name, mother’s name and maiden surname and

other relevant personal or family factors to eliminate

any doubt as to who the intended beneficiary is,

and if there are no beneficiaries identifiable or ascertainable as

aforesaid, the foundation shall be deemed to be for the private

benefit of the founders or their successors in title.

Such identification need not be made in the constitutive instrument

or statute but may be made in a separate beneficiary statement in

accordance with article 29(4)(i) of this Schedule.

(5)Persons who are not yet conceived at the time of the creation

of a foundation may be named as beneficiaries or form part of a

class of beneficiaries but their rights arise only once they are born

viable.

(6)The founder of a foundation may also be a beneficiary.

(7)Subject to the terms of the deed of foundation which may

exclude or restrict such power, if the founder is still alive and capable

of acting he may freely amend the deed of foundation including

substituting, adding or removing beneficiaries

Provided that no decision of a founder shall affect the validity of

anything lawfully done by the administrators prior to such decision,

before they receive notice of such amendment, nor shall it affect or

interrupt lawful acts in progress or lawful commitments made and

not yet fulfilled by the administrators.

(8)A beneficiary may be appointed -

(a) subject to a condition; or

(b) for a specified time; or

(c) up to a specified value of benefit,

as a founder shall deem appropriate

Provided that, if the founder is deceased, a beneficiary may apply

to the Court requesting it to eliminate any condition or requirement

which is considered to be unreasonable paying regard to all the

circumstances

Provided further that persons unworthy of receiving under a will

cannot receive as beneficiaries under a foundation.

(9)The terms of the foundation may provide for the addition of a

person as a beneficiary or the exclusion of a beneficiary from

benefit at the discretion of the administrators.

(10)The terms of a foundation may make the interest of a

beneficiary -

(a) liable to termination; or

(b) subject to restriction on alienation or dealing; or

(c) subject to diminution or termination in the event of the

beneficiary becoming bankrupt, or insolvent, or any of

his property becoming liable to seizure for the benefit

of his creditors; or

(d) not liable to attachment under a garnishee order issued

against the administrator or to termination without the

prior consent of the Court, when the interest is

expressed to be for the maintenance of the beneficiary

or as a pension.

(11)Where the benefit consists in an annuity or pension or the

use an d enjoy ment of p roperty and the enjo yment of frui ts

therefrom, the terms of the foundation may make the interests of

the beneficiary -

(a) subject to restriction on alienation or dealing;

(b) not liable to attachment under a garnishee order served

on the administrators as garnishees; or

(c) not liable to termination without the prior consent of

the Court.

(12)When the administrator is granted the power to add a

beneficiary at his discretion, such power shall be valid on condition

that sufficient indication be given in the deed of foundation or in

the beneficiary statement as to the class of which the beneficiary

forms part. In the absence of such indication the power shall be null

and void.

(13)A person who may be appointed a beneficiary in terms of a

power or discretion granted to the administrator shall not enjoy any

rights in relation to the foundation or vis-à-vis the administrator

and shall not be considered a beneficiary in any manner until

appointed as a beneficiary by the administrator.

(14)It shall be lawful for an administrator to be granted the

power to decide at his absolute discretion, which beneficiaries are

to benefit, the quantity of any benefit, at what time and in what

manner beneficiaries are to benefit and such other powers relating

to the appointment, application or advancement of property of the

foundation.

(15)A beneficiary in whose favour a discretion to distribute or

appoint property may be exercised shall have no rights to specific

property of the foundation until such time as such discretion is

exercised by the appointment, application or advancement of such

property in his favour.

(16)A beneficiary may disclaim his whole interest in writing and

such a disclaimer shall be irrevocable.

(17)Subject to the terms of the deed of foundation, a beneficiary

may disclaim part of his interest, whether or not he has received

some benefit from his interest; in any such case, but subject to the

terms of the foundation, a disclaimer may, by the instrument by

which the interest is disclaimed, be made revocable, and shall then

be capable of revocation in the manner and under the circumstances

therein mentioned or referred to.

(18)Subject to the terms of the foundation, a beneficiary may, by

instrument in writing, sell, charge, transfer or otherwise deal with

his interest in any manner.

(19)Subject to the terms of the foundation, the following rules

shall apply where a foundation, or an interest under a foundation, is

in favour of a class of persons

(a) a class closes when it is no longer possible for any

other person to become a member of a class;

(b) a woman who is over the age of fifty-five years shall

be deemed to be no longer capable of bearing a child;

(c) where any class interest relates to income and for any

period there is no member of the class in existence, the

income shall be accumulated and, subject to article

29(7), shall be retained until there is a member of the

class in existence or the class closes.

(20) When permitted by the statute of a beneficiary foundation,

beneficial interests may be established in the statute or a

beneficiary statement in unitised form, of whatever nomenclature,

where each unit reflects a share in the assets of the foundation with

such rights to income, capital or other entitlements or powers as

may be stated in the statute or beneficiary statement and if nothing

is stated, proportionately to the total number of units

Provided that the units may be subject to rules on recordation in

a register of units, transfers, pledges and other such matters as the

administrators may establish from time to time or as are provided in

the statute. In such cases, the beneficial interest is presumed, unless

otherwise stated in the statute or beneficial statement, to be subject

to inheritance in favour of the beneficiary's heirs under his will or

at law in case of intestacy and shall not terminate as provided for in

sub-article (3).

(21)In the event that a private interest foundation as defined in

article 31B is dissolved for any reason at law, the assets of the

foundation shall, subject to the performance of all obligations

towards beneficiaries and any other terms of the foundation, be

presumed to be held for the founder or his successors in title.

(22)Notwithstanding the provisions of this article, and other

provisions of this Schedule, where a "beneficiary foundation" is

established exclusively for public interest, beneficiaries shall be

regulated by the provisions in Column A

Provided that such provisions listed in Column A shall be subject

to the modifications in Column B

Column B

Column A

The foundation may have an initial

29(2)

endowment of money or property of only

two hundred and thirty two euro and ninety

four cents (€232.94);

The beneficiaries or class of beneficiaries

29(4)(h)

must be indicated in the statute and the use

of a beneficiary statement shall not be

permitted;

The foundation may be established for an

29(7)

unlimited term and the one hundred and

twenty-five year (125) limit shall not apply;

Any amendments or addition to the purpose

32(2)

of the foundation may not introduce any

purpose or beneficiary which amounts to a

private benefit;

These sub-articles on the using, disposal or

32(4), (5),

(6), (7)

distribution of assets on termination of a

public benefit foundation shall apply to the

foundation mutatis mutandis;

The founder or the administrators may add

33(7), (9)

beneficiaries if given such power but, at all

times, the new beneficiaries shall only be

public interest organisations;

The founder or the administrators may be

given the power to amend the deed of

foundation consistently with the rules

applicable to public benefit foundations;

Any transfer of the beneficial interest may

33(21)

only be made in favour of other public

interest organisations;

Endowments to the foundation are

34(6), (7)

irrevocable and the constitutive instrument

or statute of the foundation or the instrument

of additional or new endowment may not

state that such endowments are revocable;

The foundation must have at least three (3)

35(2)

administrators or at least one juridical person

acting as administrator in accordance with

article 35(1);

The State Advocate or the Commissioner in

38(1)(g)

terms of the Voluntary Organisations Act

may request information from the

administrators;

The administrators are not bound to inform

38(4)

certain beneficiaries until such time as they

intend making a distribution to them;

The beneficiaries may not terminate the

40(2)

foundation;

This sub-article shall apply to the

40(9)

foundation;

The provisions of this article shall not apply;

however the founder may impose

confidentiality to protect the identity of the

named persons referred to in article 32(8);

This sub-article shall not apply and on

60(2)

dissolution and winding up of the foundation

the distribution of the assets shall be

governed by article 60(1).

34. (1) Subject to the provisions of the statute, any person may

add to the assets of a foundation by endowments at any time.

Endowments shall be considered to have been made under the same

terms and conditions, for the same beneficiaries or for the same

purposes, as the case may be, in terms of the statute of the foundation.

Unless the provisions of sub-article (2) apply, the grantor of such

endowments, if not the founder, shall have no status or powers in

relation to the foundation and the endowment shall be referred to as an

additional endowment.

(2)When permitted by the provisions of the statute or with the

express concurrence of the founder, the supervisory council or

protector, the administrators or, in default of such persons, the Court, a

person, hereinafter referred to as "the grantor" may make an

endowment in such a manner that he shall be considered to have the

status and powers of a founder in the foundation in relation to such

endowment or in relation to the whole foundation, or where such

endowment is granted to a cell if so contemplated and consented to as

aforesaid, such endowment shall be considered a new endowment.

(3)When such augmentation by third parties is made by means of

a will, the testamentary disposition shall be deemed to require the

creat ion of a new f oun dation and the adm ini st rato rs of the

nominated foundation shall proceed accordingly, even without the

concurrence of the persons mentioned in sub-article (2).

(4)Where the statute of a foundation provides for the

establishment of segregated cells, a new endowment, whether

transferred inter vivos or causa mortis, may be constituted as a new

segregated cell by the administrators in which case the grantor’s

status and powers may be limited to such segregated cell. When a

grantor becomes a new founder as aforesaid the rules in article 39

shall apply when there is more than one founder.

(5)The administrators shall be bound to file with the Registrar,

within three months from any grant, an inventory or descriptive

note of the assets added to a foundation but in the case of cash

endowments, only a certified copy of the relative bank deposit

statement shall be filed with the Registrar.

(6)In the event that endowments are received by such foundation in

a regular manner in terms of a scheme which is registered with the

Registrar, it shall not be required that the administrators file a

descriptive note on each occasion that a new or additional endowment

is made but they shall file a schedule of endowments on an annual

basis. Neither shall it be required that the administrators enter into a

public deed on each occasion that an endowment is made, unless the

endowment involves immovable property. In each case, the

administrators shall file the prescribed form and required attachments

to notify such endowments to the Registrar.

(7)Endowments may be granted under a condition, for a fixed time

or in accordance with express rules stated in the statute. A new

endowment may be made for purposes which are different from those

of the foundation. In the absence of any indication, endowments shall

be considered to be unconditional and made for the same purposes of

the foundation.

(8)Additional and new endowments to public benefit foundations

shall be irrevocable notwithstanding any term to the contrary in the

constitutive instrument or statute of the foundation or the instrument

providing for the additional or new endowment.

(9)Unless expressly stated otherwise, additional and new

endowments to beneficiary foundations shall be presumed to be

irrevocable. The fact that an endowment is stated to be revocable,

unless otherwise stated in the constitutive instrument or statute of the

foundation or the instrument of additional or new endowment, shall

not imply any limitation on the use or appointment of the capital or

income by the administrators. In the case of revocation, the grantor

shall only be entitled to the balance of capital which may remain

unutilised.

(10)Where, in the case of a beneficiary foundation, an additional or

new endowment is made by two or more grantors jointly and

expressed to be revocable such endowment may only be revoked

with the express consent of all the grantors.

(11)In the case of a beneficiary foundation, the revocation of an

endowment shall not affect or invalidate acts already carried out or

interrupt acts in progress, nor affect commitments made and not yet

fulfilled. The revocation of an endowment shall be suspended until

such time as the administrators certify to the Registrar that all

commitments have been fulfilled and shall be deemed to refer only to

such amount as shall not have been utilised in fulfilment of such

commitments.

(12)The revocation of an additional or new endowment shall not

imply the termination of a foundation but shall, unless otherwise stated

in the statute, imply the cessation of the status of founder and all

related rights in relation to the grantor.

(13)If a foundation is the beneficiary of a new or additional

endowment granted for specific purposes different from its own

purposes, unless permitted in accordance with sub-article (5), the

administrators shall seek new instructions from the grantor and if that

is not possible, such endowment shall not be accepted and shall be

deemed to require the creation of a new foundation and the

administrators of the recipient foundation shall proceed accordingly.

(14)When a foundation receives an endowment without sufficiently

specific terms and from the circumstances it is evident that the

foundation owes fiduciary duties in relation to such property towards a

beneficiary or a class of beneficiaries or a purpose, the administrators

shall execute a unilateral declaration by instrument in writing

containing all the fiduciary terms under which the foundation is

holdi ng the same, comprising the inform ation enabling the

identification of all the beneficiaries or purposes. The administrators

may ask the Court to confirm the contents of their declarations.

(15) In the event that there are no administrators at the time of

establishment or registration of a foundation, the founder or the

person having the power to appoint administrators shall be deemed

to have the power to accept any endowment but shall not have the

power to bind the foundation on any other matter nor shall the

foundation be entitled to commence operations prior to the

appointment of the required number of administrators.

(16)The term "endowment" for the purposes of this Title shall

mean any grant of money or other property under a gratuitous title,

including rights to money or other property, existing or which may

arise in the future.

35. (1) The persons named to be administrators of a

foundation may be juridical persons provided they have at least

three directors.

(2)When a foundation is a public benefit foundation it shall have at

least three administrators or at least one juridical person acting as

administrator.

(3)If the person nominated as an administrator in the constitutive

instrument or statute i s u n w i l l i n g o r u n a b l e t o a c c e p t s u c h

responsibility, then he shall, within fifteen days, notify his

intentions in writing to the Registrar, the founder or his heirs and

the persons named as succeeding, if any. The taking of possession

of any assets of a foundation shall imply acceptance to act as an

administrator thereof and in such a case the administrator is bound

to confirm his acceptance in writing to so act on demand of any

interested person or the Registrar. Failure to do so within thirty

days from a written request shall be a breach of duty by the

administrator.

(4)Any person named or appointed to succeed in administration

shall enter into the same obligations as if he were the person named

in the first place and shall notify the Registrar in writing upon

taking up office. It shall be lawful for an administrator upon taking

up office, but not later than thirty days after, to notify in writing the

Registrar and any interested parties of any reservations he may

have regarding anything relating to the foundation or the actions of

the previous administrators and he shall not be liable for any

matte rs so r eserved until suc h t ime as t he rese rvations are

operative.

(5)When administrators, both those originally named or those

succeeding, have made any acts of administration, they are bound

to submit an account of their administration on relinquishing the

administration in addition to such accounts as are required to be

submitted in accordance with applicable law. Such account shall be

submitted to the succeeding administrators or in their absence to

the Registrar.

(6)Unless the deed of foundation provides otherwise,

administrators may be remunerated from the income or capital of

the foundation. Such remuneration shall be in such amounts and in

such manner as may be stated in the deed of foundation or in any

agreement between the founder and the adm inistrator or in

accordance with applicable law. Remuneration may also be

established by the Court on application of the administrator or any

interested party.

(7)Subject to the provisions of sub-article (8), an administrator

may resign from office by notice in writing to his co-administrators

and in case of there being no other administrator, to the founder or

to the beneficiaries or, if impracticable, to at least one beneficiary,

or if there are none to whom notice can be given, to the

administrator’s duly appointed successor and the resignation shall

take effect on delivery of the aforesaid notice.

(8)A resignation -

(a) given in order to facilitate a breach of duty, or

(b) which would result in there being no administrator for

the foundation,

shall have no effect; provided that an administrator may resign

office notwithstanding the provisions of paragraph (b), if, before

the resignation takes effect, application is made to the Court for the

appointment of a new administrator and a new administrator is so

appointed.

(9)An administrator shall cease to be an administrator

immediately upon -

(a) the lapse of the term for which the administrator was

appointed;

(b) the removal of the administrator by any person or body

having the power to do so in terms of the public deed of

the foundation or by the Court on grounds stated in the

deed of foundation or in this Schedule; or

(c) steps are taken for the winding up of the administrator

when a legal person;

(d) when the administrator is a legal person, the

retirement,

resignation

or

removal

of

all

administrators, including directors in a company

acting as administrator, from their office in the said

legal person or steps are taken for its winding up; or

(e) where an administrator is appointed without any

indication of his duration of office and

(i)

is the sole administrator, he shall require that the

statute caters for a substitute administrator or the

manner in which a new administrator may be

appointed upon his retirement, resignation or

removal. Where the administrator is in default of

the obligation in this paragraph, a new

administrator may be appointed to substitute

such administrator at any time with the consent

of the founder, of any person designated in the

statute or of the Court in the absence of such

persons; and

(ii)

there is more than one administrator, it is

implied that the other administrators shall have

the power to remove the administrator at any

time when they consider that he is unable to

carry out his functions due to health or in

accordance with the provisions of article 9

Provided that in case of disagreement on any of

the matters referred to in this paragraph, the

administrator who was appointed without any

indication of his duration in office may apply to

the Court and demand that the Court issues such

orders regarding his substitution, retirement,

resignation or removal, as it considers

appropriate after hearing the relevant persons.

(10)An administrator ceasing to be an administrator shall, in

addition to the duty to account under sub-article (5), be bound to

immediately deliver all property of the foundation which may be in

his possession to the remaining or successor administrators and to

take all such formal or other actions as may be necessary in the

interest of the foundation.

36. (1) The founder, and such other persons who may be

designated in the deed of foundation, may exercise supervision

over the administration of a foundation, obtain a copy of the

accounts held by the administrators, a copy of the inventory or

descriptive notes of property, and may intervene in the matter of

appointment of administrators or in the disposal of the assets, when

these issues are being dealt with by the Court. The founder may also

be vested with powers to appoint, add or remove any administrators,

protectors or beneficiaries and powers to appoint an investment

adviser or investment manager and where a power mentioned in this

sub-article has been reserved or exercised by the founder, an

administrator who acts in accordance with any directions issued

pursuant to the founder’s power as aforesaid shall not be considered to

be acting in breach of his fiduciary duties.

(2)A founder may be an administrator or a protector of a

foundation.

(3)The founder may also be the beneficiary of a beneficiary

foundation during his lifetime

Provided that when the founder is a beneficiary, such founder

may not at the same time act as the sole administrator of such a

foundation.

(4)It shall be lawful for a founder to give non-binding written

guidance to the administrators on how to exercise the powers or

discretions vested in them in the deed of foundation or the

beneficiary statement and to substitute, modify or withdraw such

guidance from time to time as the founder sees fit. A beneficiary

may also be permitted to give such guidance by means of specific

clauses in the deed of foundation or the beneficiary statement, and

this, with effect from the date of death of the founder.

37. (1) The terms of the foundation may provide for the

establishment of a supervisory council consisting of at least one

member or for the office of a protector or protectors with similar

functions.

(2) The founder may be the sole or one of the members of the

supervisory council or may also be a protector. However, a founder

may not carry out the functions of a protector for as long as he holds

the office of an administrator.

(3)

The members of the supervisory council or the protectors

(a) may be designated in the statute of the foundation; or

(b) where no such designation is made, may be

subsequently appointed by the administrators and in

the manner prescribed in the statute; and

(c) may be removed and replaced by the administrators

and in the manner prescribed in the statute.

(4)The supervisory council or protectors shall not be considered

to be administrators.

(5)Subject to the terms of the foundation, the supervisory council

or protectors shall have the power to exercise supervision over the

acts of the administrators and may be vested with the power of

appointment, removal, substitution or addition of administrators

and such other powers as may be stated in the statute including the

power to give guidance to the administrators in the exercise of their

powers, discretions or duties.

(6)The exercise of any power, action or discretion on the part of the

administrators may be subject to the express consent of the

supervisory council or the protectors.

(7)Unless the statute of a foundation expressly states otherwise

and until such time as the supervisory council or protectors are

appointed, in the event that a deed of foundation contemplates a

supervisory council or protectors whose consent or direction is

needed for the administrators to carry out any act, the

administrators shall be presumed to have the power to carry out any

act without such consent or direction

Provided that, the decision to act without consent is taken

unanimously by the administrators.

(8)The presumption in sub-article (7) shall not apply if the

statute requires the administrators or any of them to appoint the

members of the supervisory council or the protectors.

38. (1) An administrator shall, so far as is reasonable and

within a reasonable time of receiving a request in writing to that

effect, provide full and accurate information as to the state and

amount of the foundation property, including the accounts of the

foundation, and subject to sub-article (2), the conduct of the

administration to -

(a) the founder;

(b) the Court;

(c) the supervisory council or protectors;

(d) any other person who is vested with such right in the

deed of foundation;

(e) subject to the terms of the foundation, any beneficiary

of the foundation who is of full age and capacity, or if

a minor, to his lawful guardian or representative;

(f)

subject to the terms of the foundation, any other public

benefit organisation or charitable trust referred to by

name for the benefit of which the foundation was

established; and

(g) in case of a foundation established for a purpose, the

State Advocate or the relevant authority under

applicable law.

(2)Subject to the terms of the foundation and to any order of the

Court given for special reasons, an administrator or any other

person shall not be required to disclose to any person any document

or information relating to a private interest foundation which -

(a) discloses the administrator’s deliberations as to the

manner in which a power or discretion was exercised,

or a duty conferred or imposed by law or by the terms

of the foundation was performed;

(b) discloses the reason for any particular exercise of such

power or discretion or performance of duty or the

material upon which such reason will be or might have

been based;

(c) relates to the exercise or proposed exercise of such

power or discretion or the performance or proposed

performance of such duty.

(3)Unless the terms of the foundation expressly determine the

time when and the method how beneficiaries are to be informed of

their entitlement under the foundation, the administrator shall be

obliged to inform any beneficiary of his entitlement, in writing,

within a reasonable time of his accepting to act.

(4)When the terms of the foundation grant a discretion in terms

of article 33(9) of this Schedule, the terms of the foundation may

suspend, until such time as a discretion is exercised in their favour,

the duty of the administrator to inform such beneficiaries that they

may benefit under the foundation or that they form part of a class of

beneficiaries which may so benefit. The terms of the foundation

may also indicate the time when and the method of how such

beneficiaries are to be informed.

(5)If the deed of foundation expressly provides for the

notification of information to beneficiaries or to those persons that

form part of a class from among which beneficiaries may be

appointed, without reference to any point in time, ascertained or

ascertainable, such term shall be construed as implying a duty of

the administrator to inform such beneficiaries within a reasonable

time after the death of the founder.

(6)Should the administrator consider providing information as

required by the preceding sub-articles to be prejudicial to the

beneficiaries of the foundation or any of them, the administrator

may apply to the Court and the Court may release the administrator

from the obligation to inform under such conditions as it may

consider appropriate.

(7)The duty to inform as above provided shall not arise if the

administrator is in possession of information which reasonably

demonstrates that those entitled to such information have already

been informed or are already aware of such information.

(8)In the case of a purpose foundation, the duty to inform either

unnamed beneficiaries forming part of a class or persons forming

part of a class of persons who may be appointed as beneficiaries in

t e r m s o f a p o w e r o f t h e a d m i n i s t r a t o r, s h a l l n o t a r i s e

notwithstanding the terms of the foundation unless, in case of the

unnamed beneficiaries the administrator establishes that there exist

less than ten beneficiaries appertaining to such class of

beneficiaries. Furthermore, in the absence of any indication to the

contrary, the unnamed beneficiaries or persons who may be added

as beneficiaries in terms of a power shall be assumed to be persons

who carry on relevant social or other activities principally in Malta.

(9)The administrator shall carry out the duty to inform to the best

of his abilities and at the expense of the foundation and in the event

it appears to the administrator that such exercise will be too costly

or burdensome, the administrator may apply to the Court for

directions and the Court shall be empowered to release the

administrator from such duty under such conditions as it considers

appropriate.

(10)The suspension of the duty of an administrator to inform

beneficiaries as provided in this article shall not reduce the rights

of beneficiaries or the duties and liability of the administrator

towards such beneficiaries in terms of this Schedule or other

applicable law.

(11)Persons who may be added as beneficiaries in terms of a

power referred to in article 33(12) of this Schedule shall have no

right of information until such time as they are appointed

beneficiaries by the administrator pursuant to such power.

39. (1) When there is more than one founder, initial or

subsequent, rights shall be exercised in accordance with the statute.

When the statute is silent, in case of two founders, decisions will be

taken unanimously and when there are more than two founders, in

accordance with the decision of the majority.

(2)In multi-founder foundations the rules on general meetings

according to the provisions of article 52 of this Schedule shall

mutatis mutandis apply.

40. (1) Subject to the provisions of sub-article (2), unless

expressly provided otherwise in the statute or in this Title, a

foundation shall not be subject to termination prior to the term for

which it is established.

(2) Unless the founder has expressly excluded such a right, a

beneficiary foundation may be terminated on the demand of all the

beneficiaries of the foundation provided they are all in existence,

have been ascertained and no one of them is an interdicted or a

minor. If the founder is still alive his consent shall be required for

t e rm in a ti o n by t he be n e f i c i a ri e s . T h e f o u nd e r m ay s u bj e c t

termination to the consent of a person or the supervisory council or

the protectors, other than the administrators, stated in the statute.

(3) Notwithstanding anything stated in the statute or in sub-

article (2), after the death of the founder, the Court shall have the

power to dissolve and wind up any beneficiary foundation when

requested to do so by all the beneficiaries of the foundation if it is

satisfied that the continuance of the foundation is no longer

necessary to achieve the intentions of the founder or is otherwise

unreasonable.

(4) The statute of a foundation may provide that it may be

terminated at any time but termination shall not affect or invalidate

acts already lawfully carried out or interrupt lawful acts in

progress. Nor shall termination affect lawful commitments made

and not yet fulfilled. Termination shall be suspended until such

time as the administrators certify to the Registrar that all lawful

commitments have been fulfilled.

(5) The express reservation by the founder of the right to

terminate a foundation shall not be exercisable by the heirs or

spouse of such founder unless expressly provided otherwise in the

deed of foundation. Without prejudice to any other remedies

available at law, creditors of the founder may not exercise the right

to terminate a foundation.

(6) When a foundation is terminated, the procedures in article

59 shall apply.

(7) Except in cases contemplated in article 47(2), where a

foundation is converted into a trust, termination of registration

shall imply termination of the foundation but not of the fiduciary

obligations therein contained and upon notice of the conversion,

the Registrar shall proceed to strike off the foundation.

(8) The administrators shall have a duty to maintain in good

standing the registration of a foundation until it is terminated as

provided for in this article.

(9) Public benefit foundations may only be constituted in an

irrevocable manner and, without prejudice to the power to terminate

such a foundation in accordance with article 32 for the reasons and

subject to the conditions therein stated, any clause in the statute

reserving the right for the founder or any other person or body to

revoke such foundation shall not apply.

41. The Court shall have jurisdiction in relation to all non-

contentious matters which are internal to the foundation, its

administrators and beneficiaries

Provided that if a non-contentious matter being examined

by the Court becomes contentious, the Court shall declare the

proceedings before it to be contentious and shall continue to deal

with the matter as a contentious issue, providing the parties the

opportunity to promote the claim and respond to it according to

law.

42. (1) Subject to the provisions of sub-article (3) the Court

may, if it thinks fit, by order approve on behalf of -

(a) any person incapacitated at law having directly or

indirectly, an interest, whether vested or contingent,

under the foundation; or

(b) any person, whether ascertained or not, who may

become entitled, directly or indirectly, to an interest

under the foundation as being at a future date or on the

happening of a future event a person of any specified

description or a member of any specified class of

persons; or

(c) any person unborn; or

(d) any person in respect of any interest of his that may

arise to him by reason of any discretionary power

given to any one on the failure or determination of any

existing interest that has not failed or determined;

any arrangement, by whomsoever proposed and whether or not

there is any other person beneficially interested who is capable of

assenting thereto, varying or revoking all or any of the terms of the

foundation or enlarging the powers of the administrators of

managing or administering any of the foundation’s property.

(2)

The Court shall not approve an arrangement on behalf of

any person coming within sub-article (1)(a), (b) or (c), unless it is

satisfied that the carrying out of such arrangement appears to be for

the benefit of that person.

(3) Where in the management or administration of a

foundation, any sale, lease, pledge, charge, surrender, release or

other disposition, or any purchase, investment, acquisition,

expenditure or other transaction is in the opinion of the Court

expedient but the same cannot be effected by reason of the absence

of any power for that purpose vested in the administrator by the

terms of the foundation or by law, the Court may confer on the

administrator, either generally or in any particular circumstance, a

power for that purpose on such terms and subject to such provisions

and conditions, if any, as it thinks fit, and may direct in what

manner and from what property any money authorised to be

expended, and the costs of any transaction, are to be borne.

(4) In sub-articles (1) and (2) of this article all references to

"foundation" shall be references to a beneficiary foundation.

(5)An application to the Court made under the previous sub-articles

may be made by the administrator, by any beneficiary or by any

interested party, as the case may be.

(6)In the event that the statute of a purpose foundation does not

contain any provisions relating to amendments to such statute, if

the Court is satisfied that circumstances exist justifying a request

made for such amendments to be made to the statute, the Court may

order -

(a) any variation or addition to the statute;

(b) any variation to the purposes for which property may

be applied;

(c) any variation of any provision of the statute as may be

required for the effective achievement of the purposes

of the foundation or its administration; and

(d) any variation to achieve the re-organisation of the

structure of the foundation including its division into

two or more foundations or legal organisations of a

similar nature, or its conversion into a trust or trusts,

and to the extent that the provisions of article 32(8) apply, the

Court shall have the powers referred to in this article with reference

to any identifiable beneficiaries to whom the provisions of sub-

article (1) apply.

(7)The Court shall not approve a request under the previous sub-

article unless it is of the opinion that such amendment is, as far as

reasonably practicable, consistent with the principal purpose and

objectives of the foundation.

(8)Any variation approved by the Court shall be implemented by

an amendment to the statute and the administrators shall abide by

the formalities as may be prescribed in the statute and in applicable

law.

(9)Any application to the Court made under sub-article (6) may

be made by the administrator, any person vested with such power in

the statute or by the State Advocate, as the case may be.

43. (1) An administrator may apply to the Court for directives

concerning the manner in which he may or should act in connection

with any matter concerning the foundation and the Court may make

such order, if any, as it thinks fit.

(2)The Court may also, if it thinks fit -

(a) make an order concerning

(i)

the execution or the administration of any

foundation; or

(ii) the administrator of any foundation, including

an order relating to the exercise of any power,

discretion or duty of the administrator, the

appointment or removal of an administrator, the

remuneration of an administrator, the submission

of accounts, the conduct of the administrator and

any payments into the Court; or

(iii) any beneficiary or any person having any

connection with the foundation;

(b) make any declaration as to the validity or enforcement

of a foundation;

(c) rescind or vary any order or declaration made under

this Title, or make any new or further order or

declaration.

(3)An application to the Court for an order or declaration under

sub-article (2) may be made by the administrator or by any

beneficiary or by the State Advocate or by any other person having

a lawful interest

Provided that in cases where the duty to inform a beneficiary of

his interest in a foundation has been suspended in terms of article 38

and until such suspension is in force, and in the absence of any

other person appointed to supervise the administration of a

f ou n da t io n , th e f o u nd e r o f a f ou n d a t i on m a y a l s o m a k e a n

application to the Court in terms of this sub-article. Whilst dealing

with such application the Court may determine whether the

suspension of rights to information as aforesaid be maintained in

force in full or in part for all or some of the beneficiaries.

(4)Where the Court makes an order for the appointment of an

administrator or administrators it may impose such conditions as it

thinks fit.

(5)Subject to any order of the Court, an administrator appointed

by the Court under this article shall have the same powers,

discretion and duties as if he had originally been appointed an

administrator by the deed of foundation.

(6)Where any Court makes an order on the demand of a

beneficiary who has been prejudiced as a result of bad faith on the

part of the administrator in the operation of a foundation, the Court

shall have the power to restore the position to what it would have

been had the action complained of not been taken or otherwise to

protect his interests.

(7)When a person domiciled in Malta is obliged to pay

maintenance in terms of this Code and is a beneficiary under a

beneficiary foundation, the Court shall have such powers as are

necessary to review the exercise of discretion by the administrator

to give due consideration to the rights of persons entitled to claim

maintenance.

44. (1) There shall be no appeal from any decree, order,

declaration or direction of the Court given under the provisions of

this Schedule except where the matter has been declared to be

contentious and the Court has, after the relevant proceedings have

been completed, rendered a judgement on any matter.

(2)Such decrees, orders, declarations, directions or judgements

shall remain in force until they are substituted or varied by the

Court in either its voluntary or contentious jurisdiction.

(3)During the hearing of an application before the Court the

administrator or applicant shall at the earliest opportunity disclose

to the Court all material facts known to him which may be relevant

to the application including the existence of any res judicata or

pending judicial action given or commenced in Malta or before a

foreign court.

(4)All applications to the Court shall be notified to the

administrator and the applicant shall furthermore notify all persons

who he considers having an interest in the subject matter of the

application. The Court shall have the power to order notification to

all other persons who it considers may have an interest as it deems

fit.

(5)The Court shall hear the administrator and any interested

parties as it considers appropriate.

(6)Without prejudice to any other power given to the Court by

virtue of the foregoing provisions of this article or of any other law,

where an administrator neglects or refuses to perform any duty or

to comply with any order of the Court, the Court may, on such

terms and conditions it may deem appropriate, order that the

required action be executed, made or done by such person as the

Court may appoint for the purpose, at the cost of the administrator

in default, or otherwise as the Court may direct; and anything so

executed, made or done shall operate and have effect for all

purposes as if it had been executed, made or done by the

administrator.

45. (1) All proceedings under these articles in relation to a

beneficiary foundation shall be held in camera and only the parties

to the proceedings, the administrators, the beneficiaries, if they

prove they have an interest in the proceedings to the satisfaction of

the Court, and their respective advocates and legal procurators shall

be allowed in Court during the hearings.

(2)Any decree or judgement of the Court shall preserve the

confidentiality of the proceedings and shall only reveal such facts

as may be necessary to make the same intelligible and enforceable

by the parties and the administrators.

(3)All applications, responses, affidavits, opinions, statements

and other documents or evidence shall be kept by the Registrar of

the Court in a confidential manner and no access shall be given

thereto except with the written consent of the Court.

(4)When information, or a document or information therein, is

considered to be confidential by a party to any proceedings in

relation to other parties to the proceedings it shall be lawful for the

Court to hear only such party prior to ordering the disclosure or

otherwise of such information and if the Court is satisfied that the

other party or parties to the proceedings have no interest in the

information considered to be confidential or that it has no bearing

on the matter being addressed by the proceedings, the Court shall

order that such information shall not be disclosed in the

proceedings.

(5)The provisions of this article shall apply only to beneficiary

foundations.

46. The Board established under article 29 of the Code of

Organization and Civil Procedure may make Rules of Court

concerning applications made under or in terms of this Sub-Title.

47. (1) It shall be lawful to convert a foundation into a trust

and a trust into a foundation

(a) with the consent in writing of

(i)

all trustees or administrators, as the case may be;

and

(ii) all beneficiaries with fixed interests under the

trusts or having similar rights under the

foundation; and

(iii) any other person appointed in the trust

instrument or deed of foundation, as the case

may be, whose consent may be required for the

taking of material decisions in relation to the

relevant assets; and

(b) by executing a deed of foundation or instrument of

trust in the appropriate form and with content so as to

faithfully reflect the intentions of the settlor of the

trusts or the founder of the foundation and the rights of

beneficiaries as the case may be.

(2)When a foundation is converted into a trust, the trustees of the

trust shall be bound to cancel the registration of the foundation

within thirty days of the receipt of all consents required in the

preceding sub-article and this by the filing with the Registrar of a

notice as may be prescribed.

(3)When a trust is converted into a foundation, the administrators

of the foundation shall be bound to execute a public deed and

register the foundation within thirty days of the receipt of all

consents required by this article and this by the filing with the

Registrar of the documents required by this Schedule.

(4)The provisions of this article shall apply mutatis mutandis to

(a) the conversion of a cell of a foundation into a trust,

whether relating only to the assets of such cell or by

incorporating the cell assets as a segregated patrimony

under an existing trust; and

(b) the conversion of a trust, or a segregated part thereof,

into a cell of a multi-cell foundation.

Sub-Title III

Of Associations

48. (1) When established for the promotion of a private benefit,

an association of persons shall be regulated by special laws mentioned

in this sub-article as the case may be, based on the purposes and legal

form chosen by its promoters, whether it is registered or not with the

Registrar: -

(a) the provisions of Title X of Part II of Book Second of

this Code relating to civil partnerships;

(b) the special laws relating to commercial partnerships;

(c) the special laws relating to particular professions;

(d) the special laws relating to unions and employer

associations;

(e) the special laws relating to co-operatives;

(f)

the provisions of special law, where promoting

ancillary or incidental private benefit, other than those

listed above;

(g) where there is no other special law which is

applicable, the provisions of this Sub-Title III "Of

Associations" other than those governing public

benefit organisations; or

(h) where for any reason the provisions of a special law

cease to apply to an association which continues to

exist, the provisions of this Schedule shall apply.

(2)The special laws referred to in sub-article (1) shall be

s up p l e m e nt e d b y t h e p r o vi s i o n s o f t h i s S c h e d u l e , w i th t he

exception of provisions which apply solely to public benefit

organisations in the form of associations

Provided that, where the provisions of this Schedule are not

consistent with the special laws, the special laws shall prevail.

(3)Where an association is governed in accordance with the

provisions of sub-article (1)(g) and irrespective of whether the

association is registered or not

(a) the provisions of the statute shall, in case of

inconsistency, prevail over the provisions of this Sub-

Title III "Of Associations" and the applicable

provisions of this Schedule except where such

provisions are mandatory;

(b) subject to the benefit of discussion of the assets of an

association, which must first be discussed, any

member shall be liable to third parties with whom the

association has contracted in proportion to his share in

the profits and losses or in proportion to his benefit or

other interests in such association, whichever is the

higher, unless

(i)

his liability has been varied in a contract entered

into with the third party, which contract shall not

bind other members of the association without

their consent; or

(ii)

such liability has been excluded or limited by

any provision of law;

(c) when the share of the profits or losses, or the benefit or

other interests, is not determined on the basis of a

designated proportion, the liability of a member shall

be based on the proportion which his monetary

contribution bears to the total contributions of the

members.

The matters referred to in paragraphs (b) and (c) shall be

determined on the basis of express provisions in the statute and

absent any such provisions, the liability to third parties shall be

equally borne by the members and any private agreement among

members shall not affect the rights of third parties.

(4)If any member, for any reason, directly or indirectly, pays or

is subject to a liability greater than his proportional share as stated

in sub-article (3)(b) or (c), such member shall have a right of relief

against the other members proportional to their share, subject to

any agreement among the members or the provisions of the statute

on such matters.

(5)The Minister may make regulations in relation to associations

governed by the provisions of this Schedule for their better

governance and shall have the power

(a) to extend the application of specific provisions of

special laws regulating other types of associations to

such associations; and

(b) to introduce rules which apply when such associations

are registered with the Registrar, which rules may

establish different principles to those stated in sub-

article (3) for such registered associations; and

(c) to introduce any special rules, including limited

liability for the members for particular cases and

establish the conditions under which such limited

liability may be enjoyed.

48A. (1) When an association is established as a public benefit

organisation, it shall be governed by the provisions of this Sub-

Title III "Of Associations" and the applicable provisions of this

Schedule, with the exception of provisions of article 48.

(2)The provisions of the statute of such association shall, in case

of inconsistency, prevail over the provisions of this Sub-Title III

"Of Associations" and the applicable provisions of this Schedule

except where they are mandatory.

(3)The rules on liability of the members of such an association

towards third parties shall be governed by

(a) article 16 if the association is registered with the

Registrar; and

(b) article 17 if the association is not so registered.

(4)Where applicable the associations referred to in sub-article (1)

s h a l l a l s o b e r e g u l a t e d b y t h e p r o v i s i o n s o f t h e Vo l u n t a r y

Organisations Act.

(5)In the event that the statute of an association established as a

public benefit organisation does not contain any provisions relating

to amendments to such statute, if the Court is satisfied that

circumstances exist justifying a request made for such amendments

to be made to the statute, the Court may order

(a) any variation or addition to the statute;

(b) any variation to the purposes for which property may

be applied;

(c) any variation of any provision of the statute as may be

required for the effective achievement of the purposes

of the foundation or its administration; and

(d) any variation to achieve the re-organisation of the

structure of the foundation including its division into

two or more associations or legal organisations of a

similar nature.

(6)The Court shall not approve a request under the sub-article (5)

unless it is of the opinion that such amendment is, as far as

reasonably practicable, consistent with the spirit of the promoter’s

intention.

(7)Any variation approved by the Court shall be implemented by

an amendment to the statute and the administrators shall abide by

the formalities as may be prescribed in the statute, if any, and in

applicable law.

(8)Any application to the Court made under sub-article (5) above

may be made by the administrator, any person vested with such

power in the statute or by the State Advocate, as the case may be.

(9)The provisions of article 32(8) shall also apply to associations

mutatis mutandis.

49. (1) An agreement establishing an association shall be in

writing, on pain of nullity.

(2)The statute shall state the following for the association to be

eligible for registration

(a) the name;

(b) the registered address, in Malta;

(c) (i) the purposes or objects of the association; and

(ii) the category of the association when the

association is a public benefit association as defined in

article 1(4);

(d) the method or process by which membership of the

association is granted to applicants;

(e) the mode of procedure during general meetings;

(f)

the composition of the board of administration and the

name, surname, identification, passport or registration

number as applicable, nationality and ordinary residence

of the administrators;

(g) the manner in which administrators are appointed or

elected to and removed from office;

(h) where there exist more than one board or committee in

virtue of the statute, the statute shall specify which board

or committee shall be the board of administration;

(i)

in case of an association, the administrators of which

are non-residents of Malta, the name and address of a

person ordinarily resident in Malta who has been

appointed to act as the local representative of the

association in Malta;

(j)

the term for which it is established, if any;

(k) when the category of the association is public benefit,

this shall be stated expressly in the constitutive

instrument and statute of the organisation.

(3)If no term is specified in the statute of the association, such

association shall be considered to be indefinite in duration.

(4)(a) The statute shall be signed by the associating persons and

any person subscribing to the statute after an association is

established shall be deemed to have consented to all the provisions

of the statute and all rules which may have been validly

promulgated by the association until such date. In the event that

more than three persons wish to establish an association, a

statement may be made of this fact in the statute and the signature

of three persons on behalf of all associating members stated in a

schedule to the statute shall be sufficient to indicate the consent of

all stated persons.

(b) Where an association is being established as a public

benefit association involving more than three persons

as promoters, the signature of three persons shall be

sufficient to indicate the consent of all other

associating members at the time of establishment.

CIVIL CODE

(c) A document containing a list of all other associating

members shall be sufficient evidence of their consent

and notwithstanding the provisions of any other law, in

respect of the persons listed in the document

containing the list of all associating members, their

name, surname and identity card, passport number or

registration number, as applicable, shall suffice. A

declaration by the three persons that they are

authorised to act on behalf of all other associating

members shall be recorded under their signature

(d) When such association is constituted by public deed,

the Notary Public shall not be bound to ascertain that

the three persons have been authorised by the

associating members to appear on the deed but shall

rely on the document submitted to him by the three

persons containing a list of all associating members as

evidence of their consent. Notwithstanding the

provisions of any other law, in respect of the persons

listed in the document containing the list of all

associating members, their name, surname and identity

card, passport number or registration number, as

applicable, shall suffice.

(e) The Notary Public who receives any deed to which this

sub-article refers shall record in the deed a declaration

by the three persons that they are authorised by the

associating members to state their names, surnames

and identity card, passport number or registration

number, as applicable, in the document above referred

to and the said Notary Public shall warn the said three

persons of the importance of the truthfulness of such

declaration.

(f)

The document shall be attached to the statute by the

declarants or, if established by public deed, to the

public deed establishing the association.

(g) Any person named as an associating member in a

document as referred to above who claims that he did

not authorise the three persons to include his name and

surname and identity card, passport number or

registration number, as applicable, in the document

shall, within sixty (60) days of his becoming aware of

his inclusion in the document, be entitled to register a

declaration to that effect in the Register of the

association and in the lack of any written evidence to

the contrary which may be produced in case of dispute

on such matter he shall not be considered ever to have

been an associating member.

(5)The written consent of the administrators named in the statute

to act as administrators of the association must be delivered to the

Registrar prior to registration of any association.

50. (1) The statute of an association must clearly specify a

purpose.

(2)The assets of an association may originate from any lawful

business or activity and may consist of present or future assets of

any nature.

(3)Failure to specify a purpose shall result in the nullity of the

agreement and the Registrar shall not accept to register such an

association until such time as the purpose is clear and

unambiguous.

(4)The members of an association may add to the purpose for the

achievement of which the association was originally created, by

extending it to cover such other purposes of a similar nature as are

clearly set down in a second written instrument consented to by

such number of members as is necessary to amend the statute.

(5)A public benefit association may not have its purpose changed

or extended to other purposes which are not also public benefit

purposes and a non-profit-making association cannot change its

statute to an organisation promoting a private interest.

(6)A restriction on the number of members which is

proportionate to the physical and other resources of an association

from time to time or the existence of a membership committee with

the power to accept or refuse new members in an association, shall

not, on its own, imply that such association is one for private

benefit.

51. (1) Subject to the provisions of article 12(3), all associations

shall be eligible to register under the provisions of this Title.

(2) For the purpose of registration of an association an

authentic copy of the constitutive instrument is to be delivered to

and filed with the Registrar by the administrators.

(3)Where the association is created by a public deed an authentic

copy thereof may be delivered by the administrators provided for in

the said deed (when they have accepted to act as such) or the

Notary publishing the said deed and the delivery by any one of

them shall suffice.

(4)The document referred to in article 49(4) relating to the other

associating members, when such is t he case, at the time of

establishment shall also be delivered to the Registrar for registration.

(5)The name, surname and identity card or passport or

registration number, as applicable, of every person who joins an

association as a member after this has been established and, or

registered, shall be entered in a register of members which shall be

regularly updated. A record of the persons who leave the

association sh al l also be m ai ntained i n the said r eg ist er of

members.

(6)Such register of members shall not be registered with the

Registrar but this shall be without prejudice to the right of any

person, subject to Court authorisation, and to the right of the

Commissioner for Voluntary Organisations in the case of a

voluntary organisation, and to the right of the Malta Financial

Services Authority in the case of entities which are regulated or

which appear to be carrying out regulated activities for which it is

t h e c o m p e t e n t a u t h o r i t y u n d e r a p p l i c a b l e l a w, t o r e q u i r e

information about members subject to the provisions of applicable

law.

(7)Notwithstanding the preceding sub-article, in the case of a

public benefit organisation in the form of an association

(a) if it is registered with the Registrar, the register of

members may be registered by the Registrar at any

time upon the written request of the administrators and

shall be available to the public in all cases;

(b) the register of members shall always be accessible to

any member.

(8)On receipt of the documents mentioned in sub-articles (2) or

(3) together with the prescribed forms and any required

attachments, the Registrar shall register the association on being

satisfied that all the provisions of this Sub-Title have been

complied with.

52. (1) A general meeting for all members shall be convened

at least once every year. At this meeting the annual report and the

accounts of the association as approved by the administrators, as

well as the report of the auditors or reviewers, shall be presented

and discussed.

(2)Other meetings may be convened by the administrators

whenever they consider it necessary or when they have a request in

writing signed by at least ten per cent of the members. If the

administrators fail to convene a meeting when so requisitioned, the

Court can order the meeting to be held and shall state the time and

place of the meeting which shall be binding on the administrators.

(3)In the absence of specific provisions in the statute, at

meetings of the members, decisions shall be taken by the majority

of those present at the meeting except that

(a) when decisions are taken on the amendment of the

statute such decisions must be supported by at least

fifty-one per cent of all the registered members on the

basis of one vote per member;

(b) when decisions are taken to terminate the association

or to donate to another organisation all of its assets,

such decision must be supported by at least seventy-

five per cent of all the members; and

(c) when decisions are taken on the approval of accounts

or matters involving the role or responsibilities of the

administrators, the administrators shall not be entitled

to vote.

(4)Members may appoint proxies to attend a general meeting on

their behalf and such proxy shall have the right to vote in addition

to his own if he is a member.

(5)When any members use their right to request a meeting in

terms of this article, it shall not be lawful for the administrators or

the association to dismiss, retire or otherwise limit or reduce the

rights of those members until after the holding of the requested

meeting.

53. (1) Unless otherwise stated or implied by the statute it

shall be presumed that the administrators must be members of the

organisation except in the case where the administrators are

engaged under a contract of employment.

(2)The provisions of article 35 shall mutatis mutandis apply to

administrators of associations except as herein provided.

(3)An association established for the promotion of a private

benefit may be administered by only one administrator and such

administrator may also be a registered legal organisation on

condition that such legal organisation has at least one administrator

in office.

(4)In the case of a private benefit association, the administrators

of the association may be appointed in any manner whether by

notice in writing from any member or class thereof, by elections

among the members, by designation to an office by the

administrators or otherwise as the statute may establish and for any

term or function, subject to the provisions of sub-article (5) for

indefinite appointments.

(5)In the case of a public benefit association the same rules shall

apply but notwithstanding the provisions of the statute

(a) the majority of the administrators shall be appointed

by means of elections among the members in general

meeting except where every member or every class of

members is each given the right to appoint and remove

an administrator or where the provisions of sub-article

(6) apply; and

(b) it shall be required that a majority of the

administrators shall be subject to confirmation by the

general meeting of the members at least once every

five (5) years

Provided that when the provisions of sub-article (6) apply, such

administrators as are appointed indefinitely shall not be subject to

such confirmation.

(6) When an administrator is appointed indefinitely, such

appointment shall imply a power of the general meeting to remove

such administrator at any time when it considers that he is unable to

carry out his functions due to health or under article 9

Provided that in case of disagreement on any of the matters

referred to in this sub-article, the administrator who is appointed

indefinitely may request the Court to issue such orders as it

considers appropriate after hearing the relevant persons.

54. (1) Members of associations are those persons who

(a) subscribe to the purposes of the association;

(b) meet the personal status or qualifications

for

membership as set out in the statute;

(c) provide the necessary membership details;

(d) pay such membership fee as may be applicable or

otherwise fulfil such conditions on participation as

may be required by the statute or rules of the

organisation; and

(e) are otherwise admitted by the membership committee

or a committee authorised by the general meeting of

members to admit new members, if any.

(2)Every person who is a member of an association shall be free

to leave the association and such member cannot be subjected to

any liability, other than for unpaid fees, on leaving an association

Provided that in an unregistered association, when a member

leaves the association, this does not affect his liability under the

applicable law for the period while he was a member but he shall

not be liable in relation to any activities of the association after

such time.

(3)If the number of paid up members of an association falls

below three, and in case of an association which may be established

between two person in accordance with article 27, falls below two, the

administrators are bound to proceed with a written call for payment

of dues to the members informing them that non-payment will lead

to termination under this provision and on the lapse of the said

period, with the winding up of the association under this Schedule.

(4)Any expulsion procedure in a statute, except for failure to pay

membership fees or to comply with other purely formal conditions

of membership, should cater for

(a) the non-participation of persons with an interest in a

dispute, in the decision to expel;

(b) the right of the member whose expulsion is sought to

make submissions to the persons who are empowered

to decide.

(5)If the statute of an association does not provide for the

procedures mentioned in sub-article (4), the administrators shall be

bound to implement a procedure which respects the rules stated in

the previous sub-article

Provided that when an organisation’s administrators are involved

in the dispute and cannot find independent members to adjudge a

motion of dismissal, reference shall be made to the Court on such

issue.

(6)The membership of a person in a public benefit organisation

established as an association is not transferable nor shall be subject to

inheritance. Members may not have patrimonial rights to the assets of

such an association except as permitted under the Vo lu n t a r y

Organisations Act and are not entitled to any compensation on

retirement or expulsion or on winding up of the association.

55.(1) The provisions of article 34 shall apply mutatis mutandis

to endowments, additional and new, to public benefit organisations

established as associations

Provided that endowments shall be subject to the written

acceptance of the administrators or as otherwise required by the

statute and such endowment, when accepted, shall imply that the

grantor has become a member of the organisation, unless otherwise

expressly agreed or provided for in the statute in relation to

endowments, with the same rights and obligations and otherwise in

accordance with the statute and the provisions of this Schedule.

(2)Membership fees are not endowments and shall not be treated

as such nor shall they be refundable except as expressly stated in

the statute.

(3)When an association has a private benefit, new or additional

endowments shall generally be considered to be contributions to

the capital of the association and the following rules shall apply

(a) an endowment shall be subject to the consent of the

administrators or as otherwise required by the statute;

(b) an endowment when accepted, shall constitute a

contribution in favour of the association and in favour

of the grantor who shall thereupon become a member,

and if he is already a member of the association, such

contribution shall be considered to be an additional

endowment to his initial endowment;

(c) unless otherwise agreed or stated in the statute or if the

subject is not addressed in any agreement or the

statute, it shall be presumed that the contributions

shall be the basis of proportionality of all rights and

obligations within the organisation;

(d) the statute may regulate and establish rules, which may

be based on principles other than proportionality, on

the following matters

(i)

the rights of members in relation to their

contributions with regard to voting, sharing in

profits and losses and participation in capital on

dissolution;

(ii) participation in management of the organisation

and rights to be appointed or elected as and

appoint or elect administrators;

(iii) subject to the rights of third parties being

protected, the manner in which the contributions

of the members may be withdrawn or otherwise

paid back to them.

56. (1) An association shall exist until it is terminated in

accordance with the provisions of its statute or in terms of this Title

unless the members, upon being given thirty days’ written notice of

termination by the administrators, amend the statute to establish

other purposes to which the property of the association may be

dedicated.

(2)The termination of an association shall not affect or invalidate

lawful acts already carried out nor interrupt lawful acts in progress.

Nor shall termination affect lawful commitments made and not yet

fulfilled. Termination shall be suspended until such time as the

administrators certify to the Registrar that all lawful commitments

have been fulfilled.

(3)In the case of public benefit organisations established as

associations, subject to the provisions of the statute, any assets on

termination shall be donated or distributed by the administrators on

behalf of the association to -

(a) first to the founder, if the founder is another public

benefit organisation;

(b) if paragraph (a) does not apply, to another public

benefit organisation with the same or similar purposes

and features, or in default to any other organisation

with a social or public purpose

Provided that when the purposes are the advancement

of religion or the carrying out of a religious vocation

or there are indications in the original endowment that

this was intended for a religious organisation, to any

pious foundation or ecclesiastical entity, and in such

case of the appropriate denomination;

(c) to the Government of Malta if the purposes are general

public benefit or utility when the Government has

granted the association a substantial part of its assets,

as the administrators or the members in general

meeting may determine in accordance with the

provisions of article 52(3)(b).

(4)In the case of associations established for a combination of

purposes, being partly private benefit and partly social or public

benefit, the assets shall be paid out to the members in such manner

that the assets reflecting the private benefit owned by the members

shall be paid to the members and the remaining assets shall be

disposed of in accordance with the provisions of sub-article (3), as

may be approved by the members in accordance with article

52(3)(b), and in case of disagreement as may be directed by the

Court.

(5)Termination of registration shall not imply the termination of

the association which shall occur only upon the express

determination to that effect by the members in accordance with the

statute of the association or, in the other cases of termination, as is

provided for in this Schedule.

Title IV

OF WINDING UP OF ORGANISATIONS

57. (1) An organisation may request the termination of its

registration by means of a written request signed by all its

administrators or as otherwise required by its statute, and rendering

a statement of accounts, declaring the assets and liabilities of the

o rg a n i s a t i o n a n d s t a t i n g h o w t h e y a r e t o b e d e a l t w i t h o n

termination of registration.

(2)The termination of registration shall not imply the winding up

of an organisation. Organisations may continue as unregistered

organisations subject to the application of the relevant rules of this

Schedule.

(3)Any interested party or any competent authority may, in

accordance with the provisions of this Title, apply to the Court for

t h e t e r m i n a t i o n o f r e g i s t r a t i on a n d , o r t h e c e s s a t i o n o f a n

organisation.

(4)The termination of registration of an organisation on the order

of the Court, o n t he basi s of groun ds wh ich im ply that th e

organisation may no longer operate, shall include an order by the

Court requiring the cessation of such organisation as a legal person

and as an organisation. In such a case such organisation may not

continue to exist as an unregistered organisation.

58. (1) Without prejudice to any special law regulating the form

or purpose of an organisation, an organisation may be wound up

voluntarily or by order of the Court.

(2)In this Sub-Title, the term "organisation" includes both those

organisations which are registered and those which are not.

59. (1) An organisation is wound up voluntarily by following

the procedures laid down in the statute of the organisation. Unless

otherwise stated, the winding up of an organisation shall require the

support of a majority of all members, in case of an association, or a

majority of all administrators, in case of a foundation

Provided that the local representative may also wind up the

organisation if he has not received any form of notification from any

of the administrators for a period which exceeds twenty-four (24)

consecutive months.

(2)A certified copy of a winding up resolution shall be delivered

to the Registrar within fourteen days from when it is passed.

(3)An organisation may be wound up voluntarily only if its

assets exceed its liabilities or its assets have been exhausted and all

its debts have been paid. The administrators shall prepare a scheme

of distribution of the remaining assets of the organisation which

shall be notified to the Registrar and all interested parties. It shall

require approval by members, or in case of foundations, by the

founder or the beneficiaries, as the case may be, or in their absence

the Registrar, before being implemented.

(4)Once the scheme of distribution is approved, the

administrators shall proceed to pay out the remaining assets of the

organisation in accordance with such scheme of distribution.

60. (1) In the absence of a clear statement in the statute of a

public benefit organisation, as to how assets are to be disposed of on

termination of the organisation, the administrators may apply for

directions and shall dispose of the assets as ordered by the Court.

(2)In case of dissolution and winding up of an organisation

established for a private benefit and in the absence of an indication in

the statute of how assets are to be distributed in case of winding up, the

assets shall be paid to the beneficiaries or members, or, to the founders

or promoters or their heirs at law after payment of all expenses, as may

be determined by the Court after hearing the proposals of the

administrators, the founders or promoters if alive, the beneficiaries or

members and any other interested parties, keeping in view the

intentions of the founder.

61. The administrators of an organisation shall be bound to

dissolve and wind up an organisation when the term for which it

has been created, if any, has expired or if its purpose has been

achieved or becomes impossible. The founder or members may

amend the statute at any time, even after such event, to remove the

reason for dissolution as stated by this article, in which case any

determination of the administrators and any dissolution

proceedings shall be terminated and shall have no effect.

62. (1) An organisation shall be wound up on order of the

Court, upon the application from any interested party, for reasons

valid at law in terms of its statute or this Schedule.

(2)The Court may order the winding up of an organisation on an

application to this effect if it considers it necessary in the public

interest or if the provisions of this Schedule or any other laws are

not being observed by the organisation and the Court considers the

situation to be so grave as to merit such an order, the ordinary

remedies for breach of laws not being sufficient in the

circumstances.

(3)In the case of a private interest foundation as defined under

article 31B, the power to request its winding up in terms of this

article shall be exercisable also by the Malta Financial Services

Authority.

(4)In the case of a public benefit organisation which makes public

collections, the power to request its winding up in terms of this

article shall be exercisable by any member of the public.

63. The Court shall outline the reasons for any order given under

the preceding article and steps to be taken in relation to all assets of

any relevant organisation, including the appointment of a liquidator

for such organisation. The administrators and any person interested

shall be entitled to appeal to the Court of Appeal within fifteen

days of any such order.

64. (1) If an organisation becomes insolvent or is undergoing

serious difficulties which impede the organisation from operating

and achieving its aims, the administrators shall cease operations

and notify the Registrar who shall immediately co-operate with the

administrators to appoint a liquidator to wind up the affairs in the

i nt e r e s t o f c r e di t o r s , t h e p r o m o t e r s o r b e n e f i c i a r i e s o f t h e

organisation and the organisation itself.

(2)In this Title "insolvency" shall mean the inability to pay its

debts when due and for three months after a debt is judicially

acknowledged or admitted or if it is proved to the satisfaction of the

Court that the organisation is unable to pay its debts, account being

taken of its assets and liabilities, including contingent and

prospective liabilities.

(3)If the organisation does not have any administrators for more

than six months and suitable persons are not appointed by the Court

on the application of any interested person, the Registrar shall

proceed to demand from the Court an order for the winding up of

the organisation and the appointment of a liquidator. In the case of

a private interest foundation as defined in article 31B such power to

apply to the Court shall also be vested in the Malta Financial

Services Authority.

(4)Upon such order, the liquidator shall take over all assets of the

organisation and shall notify all creditors, if necessary by means of

public notices, and shall seek appropriate solutions to any issue

which may arise. The liquidator shall have the power to dispose of

all assets and pay all debts, observing the ranking order of creditors

as provided by law in making payments to creditors.

(5)The liquidator shall consult the Court which shall give

directions from time to time for the resolution of disputes and the

distribution of assets. The liquidator and any creditor may apply to

the Court at any time for orders in the liquidation. The Court shall

have the power to give any orders it deems appropriate.

(6)The same rules shall mutatis mutandis apply in cases where

organisations have been found to be operating illegally or are

abandoned and the Registrar is unable to obtain the co-operation of

the administrators or other interested persons for the formal

winding up of the organisation.

65. On receipt of a declaration by the administrators or

liquidators or on otherwise being satisfied that all assets have been

appropriately exhausted as required by law and that all assets have

been distributed in accordance with the approved scheme of

distribution, the Registrar shall cancel the registration of the

organisation which shall thereby be struck off the Register of Legal

Persons and the organisation shall thereafter cease to exist.

66. Should it result that the assets or liabilities of an

organisation which has been cancelled were not determined or dealt

with, distributed, paid out or otherwise liquidated, the Court shall,

on the demand of any founder, the last serving administrators or any

member, have all necessary powers to revive the organisation, and

any cell thereof, only for the purpose of determining and dealing

with or paying out or liquidating such assets or liabilities.

67. The winding up of an organisation shall not affect the

continuing validity or effect of another organisation established by

it. In such a case the role of the founding organisation, if any, shall

be carried out by the successor in title of the organisation or by

such person or persons as may be appointed by the Court. For an

organisation to be wound up any segregated cells which may be in

existence must be wound up prior to the winding up of the

organisation.

68.(1) Where the Registrar has reasonable cause to believe that a

registered organisation is not in operation, he may send a letter by

post, to enquire whether the organisation is in operation.

(2)In the event that the Registrar is notified with the letter

referred to in sub-article (1), to the effect that the organisation is

not in operation, or does not within three (3) months of sending

such letter receive such notification from any administrator or any

member in the case of an association, he shall publish a notice in

the Gazette and in a daily newspaper that, at the expiration of three

months from the date of the last publication of the said notice, the

organisation, unless the Registrar is satisfied that cause has been

shown to the contrary and there are sufficient grounds that the

organisation is not defunct, shall be struck off the Register, and the

remaining assets of the organisation shall devolve in accordance

with the provisions of the Statute or in the absence of such statute,

in accordance to the provisions of this Schedule as would occur on

dissolution.

(3)If any creditor or any other interested party who feels

aggrieved by the fact that the name of the organisation has been

struck off the Register by virtue of this article, the Court, on an

application made by such creditor or any other interested party

before the expiration of five years from the publication of the

notice of the striking off provided for in sub-article (2) may, if

satisfied that there are sufficient grounds to revoke the Registrar’s

order to strike off the organisation, order that such name be

restored to the Register, and upon an official copy of the order

being delivered by the Registrar of the Courts to the Registrar for

registration, the organisation shall be deemed to have continued in

existence as if its name had not been struck off.

(4)Subject to the provisions of sub-article (3), the Court may

give such directions and make such provisions it deems appropriate

for placing the organisation and all other interested parties in the

same position as they were before the name of the organisation had

been struck off. The Registrar shall forthwith proceed to publish a

notice in the Gazette and in a daily newspaper circulating wholly or

mainly in Malta that the name of the organisation has been restored

to the Register.

(5)Notwithstanding that the name of the organisation has been

struck off the Register in terms of the preceding provisions of this

a r t i c l e , t h e l i a b i l i t y, i f a n y, o f e v e r y p r o m o t e r, f o u n d e r,

administrator, member, of the organisation shall continue and may

be enforced as if the name of the organisation had not been struck

off the Register.

69. Amendments to this Schedule introduced by means Act

XXXVI of 2018, requiring statements to be made in the

constitutive instrument or the statute of an organisation which were

not required prior to the coming into force of the aforementioned

Act, shall not be binding on those organisations which already

existed prior to the coming into force of the Act. Such

organisations are required to introduce such statements in their

constitutive instrument or statute in conformity with the provisions

of the Act XXXVI of 2018within five (5) years of the coming into

force of the Act XXXVI of 2018.

Laws of Malta — Chapter 16 — CIVIL CODE

Both spouses are bound, each in proportion to his or her

means and of his or her ability to work whether in the home or

outside the home as the interest of the family requires, to maintain

each other and to contribute towards the needs of the family.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The matrimonial home shall be established where the

spouses may by their common accord determine in accordance with

the need of both spouses and the overriding interest of the family

itself.

(2)

Where the matrimonial home is wholly or in part owned

or otherwise held under any title by one of the spouses, such spouse

may only alienate by title inter vivos his or her right over the

matrimonial home

(a) with the consent of the other spouse; or

(b) where such consent is unreasonably withheld, with the

authority of the competent court; or

(c) in a judicial sale by auction at the instance of any

creditor of such spouse.

(3) The party who has not given his or her consent to a transfer,

may bring an action for the annulment of a transfer which has not

been effected in accordance with sub-article (2) of this article,

within one year from the registration of the transfer.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Marriage imposes on both spouses the obligation to

look after, maintain, instruct and educate the children of the

marriage taking into account the abilities, natural inclinations and

aspirations of the children.

(2) The obligation of the parents to provide maintenance

according to sub-article (1) also includes the obligation to continue

to provide adequate maintenance to children, according to their

means, and where it is not reasonably possible for the children, or

any of them, to maintain themselves adequately, who

(a) are students who are participating in full-time

education, training or learning and are under the age of

twenty-three; or

(b) have a disability, as defined in the Equal Opportunities

(Persons with Disability) Act, whether such disability

is physical or mental.

(3) The obligations provided in sub-article (1) also bind a

person acting in loco parentis with regard to another person’s child,

by reason of the marriage of such person to a parent of that child,

where the other parent of that child, shall have, at any time before

or during the marriage, died or was declared as an absentee

according to Title VII of Book First of this Code, or is unknown

Provided that the provisions of this sub-article shall be

without prejudice to the obligations of the natural parents of the

child and shall in any case be without prejudice to the provisions of

article 149.

Laws of Malta — Chapter 16 — CIVIL CODE

Lease of an urban property, residence and commercial tenement

This, ...................... day of ..........................................

By the present private writing there appear on the one part

.................................................... son of ................................. and

................................... neè ..................... born in ...........................

and residing at ................................................................. holder of

a legally valid identification document number ............. hereinafter

referred to as the lessor.

And on the other part ............................. son of ..........................

and .......................... neè ............................ born in .......................

and residing at ................................................................. holder of

a legally valid identification document number ............. hereinafter

referred to as the lessee.

And hereby the parties agree on the following

a.

the lessor is granting by title of lease to the lessee who

under the same title of lease accepts the premises

b.

the lessee may use

the

leased

premises

for

c.

this lease is being made for a period of ........................

commencing from ..........................

d.

the parties agree that on the termination of this lease it

may not be renewed / shall be renewed as follows

e.

the rent payable for this lease shall be ........................

that shall be due each .............. in advance / in arrears.

Transitory provisions - Act X of 2009, as amended by Act

V.2010.19

39. (1) Leases which were in force before the 1st June, 1995, and

which are still in force on the 1st January, 2010, shall continue to be

regulated by the laws which were in force before the 1st June, 1995, other

than the provisions of Title IX of Part II of Book Second of the Civil Code,

Of Contracts of Letting and Hiring, as amended by this Act and subject to

any regulations made in virtue of the amendments introduced by this Act.

(2)Leases which were granted after the coming into force of the

Housing Laws Amendment Act, 1995, and which are still in force

on the 1st January, 2010, shall continue to be regulated by the

provisions of the said law insofar as they are not affected by the

provisions of Title IX of Part II of Book Second of the Civil Code,

Of Contracts of Letting and Hiring, as amended by this Act.

(3)Sohowever that where by this Act further obligations were

made incumbent on the lessee which before the 1st June, 2008 were

not incumbent on him, failure to fulfil those obligations before the

1st January, 2010 may not in any manner make the lessee liable for

any damages or other adverse consequences such as an action for

the termination of the lease.

(4)The provisions of Title IX of Part II of Book Second of the

Civil Code, Of Contracts of Letting and Hiring, shall also apply to

the letting of urban tenements where terminated contracts of

emphyteusis or sub-emphyteusis have been or are about to be

converted into leases by virtue of the law

Provided that in the case of leases made by virtue of the Housing

(Decontrol) Ordinance, the provisions of the said Ordinance

d e f i n i n g t h e p e r s o n t o b e c o n s i d e r e d as t h e l e s s e e a n d t h e

provisions providing for the transfer of the lease after the demise of

the lessee shall continue to apply notwithstanding the aforesaid

provisions of the Civil Code.

(4A) As from the first payment of rent due after the 1st January,

2010 the increase in rent on the ground of inflation of dwelling

houses which are subject to a lease created by article 5, 12 or 12A

of the Housing (Decontrol) Ordinance shall, notwithstanding the

provisions of articles 5(3)(c) and 12(2)(i) of the said Ordinance be

regulated exclusively by article 1531C of the Civil Code.

(5)The Rent Board appointed by virtue of the Reletting of Urban

Property (Regulation) Ordinance shall have exclusive jurisdiction

to decide matters connected with the letting of urban property

including both commercial tenements and residences. Sohowever

that causes relating to lease contracts which on the 1st January,

2010 are still pending before the Courts or other Tribunals shall

still be dealt with by the same Courts or Tribunals.

(6)Nothing in this law and in the Civil Code as amended by this

Act shall be deemed to lessen the powers pertaining to the Director,

Social Accommodation, to the Housing Authority, or to any other

person who exercises public authority owing to such person’s

office, by virtue of the Housing Act or by virtue of the Housing

Authority Act.

(7)Without prejudice to the provisions of the Civil Code as

amended by this Act, the renewal of a lease after the 1st June, 1995

(whether such renewal is conventional, legal, customary or

otherwise) shall not be considered as a lease agreed on the 1st June,

1995 or after that date and the renewal of a lease on the 1st January,

2010 or after that date (whether such renewal is conventional,

legal, customary or otherwise) shall not be considered as a lease

agreed on the 1st January, 2010, or after that date

Provided that for the avoidance of doubt, in this sub-article and

in article 16 of the Housing (Decontrol) Ordinance, as the case may

be, the words "the renewal of a lease after the 1st June, 1995" shall

be construed as referring only to a lease commenced before the 1st

June, 1995, and renewed after the said date, and the words “the

renewal of a lease on the 1st January, 2010 or after that date" shall

be construed as referring only to a lease commenced before the 1st

January, 2010 and renewed after that date.

(8)Save as the Minister responsible for accommodation may by

regulations otherwise provide, nothing in this Act shall affect the

applicability of

(a) the Land Acquisition (Public Purposes) Ordinance;

(b) the Housing Act;

(c) the Disposal of Government Land Act; and

(d) article 8 of the Reletting

of

Urban

Property

(Regulation) Ordinance.

as in force immediately before the coming into force of this Act.

(9) Without prejudice to the other provisions of this Act, the

provisions of this Act shall apply to leases where Government is

the owner or the lessee.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The spouses shall, upon marriage, elect

(a) to adopt for both of them the surname of either one of

the parties to the marriage; or

(b) to adopt for both of them the surnames of both parties

in the order of their choice; or

(c) to adopt, for any one of the spouses, the surname of the

other spouse, after which that spouse may add his or

her surname; or

(d) to retain, for any one of the spouses, his or her

surname, after which that spouse may add the surname

of the other spouse; or

(e) retain their own surname.

(2) (a)Where one of the spouses elects any of the choices in

accordance with sub-article (1)(c) or in accordance with sub-article

(1)(d), this choice shall be given only to one of the spouses.

(b) The combination of the spouses’ surnames shall not

result in a surname which is longer than the

combination of four surnames.

(c) When the surname of any one or both of the spouses

already has a combination of two or more surnames,

the order of the surname of that spouse shall be

retained, and the spouses shall not change such order

and, or drop any part of their own surname.

(d) For the purposes of sub-articles (1) and (8) of this

article and article 4A, "surname" shall include the

surname of the spouse at birth or the surname at the

time of marriage

Provided that where one of the spouses upon marriage

elects to revert to the surname at birth, the other

spouse may not elect to adopt or add the surname at

the time of marriage of that spouse.

(3)Without prejudice to the provisions of sub-article (1), where

the spouses choose to change their surnames in accordance with

sub-article (1)(a) or (1)(b), such choice shall also become the

family name, which shall be included in the Act of Marriage.

(4)Without prejudice to the provisions of sub-article (1), where

one of the spouses elects any of the choices in accordance with sub-

article (1)(c) or sub-article (1)(d), or where the spouses choose to

retain their own surname in accordance with sub-article (1)(e), the

parties shall determine their family name in accordance with the

provisions of sub-article (1)(a) or (1)(b), which shall be included in

the Act of Marriage.

(5)Without prejudice to the provisions of article 102, the family

name chosen by the parties shall be the surname which shall be

adopted by any future children of the spouses.

(6) The provisions of sub-article (1) and (2) shall also apply to

spouses who married in Malta before the coming into force of the

Civil Code and Various Other Laws (Amendment) Act, 2020, and if

the spouses wish to change their surname in accordance with any of

2020. the paragraphs in sub-article (1), they may, within five (5) years of

the coming into force of the Civil Code and Various Other Laws

(Amendment) Act, 2020, make a request to the Director of the

Public Registry to change their surname in accordance with sub-

2020. article (1) by means of Form Y contained in Part II of the First

Schedule to this Code

Provided that if the choice made is in accordance with

paragraphs (a) or (b) of sub-article (1), Form Y shall be submitted

to the Director of the Public Registry by means of a joint

declaration by the spouses, and if a family name had already been

elected, this shall also become the family name and shall also

amend the surname of the children born prior to the submission of

Form Y

Provided further that if the choice made is in accordance

with paragraph (c), (d) or (e) of sub-article (1), if a family name

had already been elected, the spouses may by means of a joint

declaration also request the Director of the Public Registry to

change the family name as originally declared and to also amend

the surname of the children born prior to the submission of Form Y

Provided further that upon receipt of such form, the

Director of the Public Registry shall make an annotation of this

declaration on those acts of civil status where the spouse making

such declaration appears. Such declaration shall not affect the

surname as indicated in the Act of Birth of the spouse.

(7) The declaration made by means of Form Y contained in

Part II of the First Schedule to this Code shall be irrevocable and

shall not have effect on the surname of the other spouse, unless a

joint declaration is made in terms of sub-article (6).

(8) Children born in Malta before the coming into force of the

Civil Code and Various Other Laws (Amendment) Act, 2020, and

2020. in respect of whom a family name had not already been chosen in

the Act of Marriage, may assume the surname of any of the parents,

or the surname of both parents, in the order of their choice,

provided that they submit Form TT contained in Part II of the First

Schedule to this Code to the Director of the Public Registry. This

declaration made by means of Form TT shall be irrevocable

Provided that where the children are under the age of

eighteen, the declaration made by means of Form TT shall be made

by both parents, or by one of the parents if the other is deceased, or,

if both parents are deceased, by their tutor or curator

Provided further that such submission may not be made

after the lapse of five (5) years after the coming into force of the

Civil Code and Various Other Laws (Amendment) Act, 2020

2020. Provided further that upon receipt of such form, the

Director of the Public Registry shall make an annotation of this

declaration on those acts of civil status where such children appear.

(9) The spouse and descendants of the person in respect of

whom the Form TT had been submitted to the Director of the

Public Registry, may, by not later than three (3) years following the

date of submission of Form TT, also submit to the Director of the

Public Registry Form UU contained in Part II of the First Schedule

to this Code, wherein they declare that they wish to use the same

surname of their spouse or ascendant, as the case may be, as duly

annotated in the respective acts of the civil status by virtue of sub-

article (8). Upon receipt of such form, the Director of the Public

Registry shall make an annotation of this declaration on every act

of civil status of the person in respect of whom Form UU has been

submitted. This declaration made by means of Form UU shall be

irrevocable

Provided that where the descendant is under the age of

eighteen (18), the declarations made by means of Form UU shall be

made by both parents, or by one of the parents if the other is

deceased, or, if both parents are deceased, by his or her tutor or

curator

Provided further that where Form UU is submitted by the

spouse, such declaration shall not affect the surname of the other

spouse as indicated in the Act of Birth.

(10) The spouse of a descendant who has submitted a declaration

made by means of Form UU may assume the descendant’s newly

adopted surname as duly annotated, if upon marriage such spouse

declares that the surname of the descendant who has submitted

Form UU will be assumed.

(11) The provisions of sub-articles (8) and (9) shall also apply to

any person in respect of whom Form T or Form U had been

submitted to the Director of the Public Registry.

(12) A person in respect of whom a change in surname has been

annotated according to this article shall report the fact to the

authorised officer under the Identity Card and other Identity

Documents Act, and to the Passport Officer under the Passports

Ordinance who shall respectively issue a new identification

document and passport that indicate the surname in accordance to

the annotation written in the relative act of civil status. The

expenses for the issue of the new legally valid identification

document and passport shall be borne by the person who changed

the surname

Provided that where the person in respect of whom a change

has been annotated according to this article is under the age of

eighteen (18), such report shall be made by both parents, or by one of

the parents if the other is deceased, or, if both parents are deceased, by

their tutor or curator.

Laws of Malta — Chapter 16 — CIVIL CODE

(1)The children born to spouses who had applied for the

publication of banns from the date of coming into force of the

Marriage Act and other Laws (Amendment) Act, 2017, and before

the coming into force of the Civil Code and Various Other Laws

2017. (Amendment) Act, 2020, shall adopt the family name as declared in

2020. the Act of Marriage.

(2) The children born to spouses who had applied for the

publication of banns before the coming into force of the Marriage

Act and other Laws (Amendment) Act, 2017, and who are born

after the coming into force of the Civil Code and Various Other

Laws (Amendment) Act, 2020, shall assume the surname of any of

2020. the parents, or the surname of both parents in the order of their

choice

Provided that if a choice has been made by the parents by

means of a joint declaration in terms of article 4(6), the children shall

adopt that surname.

Laws of Malta — Chapter 16 — CIVIL CODE

Title I

PRELIMINARY

DEFINITIONS, PRESERVATION OF PRIVATE RIGHTS

1. In this Schedule

"administrative permit" includes licences, permits, concessions,

authorisations or encroachments, grants which are made under

tolerance or other precarious title and any other licence which may

* see also transitory provisions reproduced immediately after this Schedule.

be issued by the Government in terms of regulations which may be

made from time to time, and different departments or entities

within the term "Government" shall be treated as distinct persons;

"the Code" shall mean the provisions of the Civil Code apart

from this Schedule;

"designated date" shall be the date of the coming into force of

this Schedule;

"Government" shall include all departments and agencies of

Government, all local councils, all statutory authorities and

corporations and all organisations controlled by the Government;

"land", for the purposes of this Schedule, shall include the

seabed and the sub-soil;

"private rights" are those titles or rights which arise under any

law or agreement and which, if subject to registration or

preservation according to applicable law, are so registered or

preserved in the manner and within the time required by applicable

law;

"relevant date" means the 1st July, 2016;

"relevant registry" means the Public Registry or the Land

Registry or any successor registry;

"special law" means Acts of Parliament or regulations and other

Acts constituting law other than the provisions of the Code which

deal with particular matters relevant to any provisions of this

Schedule.

2. (1) Land in the public domain which is subject to private

rights, in virtue of laws enacted or agreements validly entered into

prior to the relevant date shall continue to be subject to the terms

and conditions of such laws or agreements until such land is, if

ever, acquired by the Government free from such private rights.

(2)Nothing in this Schedule shall affect private rights over land

in the public domain except and only to the extent that

(a) when the land was acquired from the Government or

otherwise, it was subject to express reservations; or

(b) the land is subject to reasonably implied restrictions

on use or enjoyment attributable to its specific public

domain nature and to its designation under any plan,

policy or schedule issued under any law from time to time

regulating development planning

Provided that for the avoidance of doubt, private rights

shall continue to be fully enjoyed and shall only be

subject to reasonable limitations which arise from the

public domain nature of the particular land, keeping in

view its particular characteristics, uses and functions

and the public utility it provides; or

(c) by virtue of the owner’s consent, until withdrawn, the

land has been made available for public utility; or

(d) the law, as it stood prior to the relevant date, so

provides; or

(e) the land was granted by the Government on mere

encroachment terms and such concession has lapsed or is

withdrawn.

(3)Private rights granted by the Government by means of any

written instrument prior to the relevant date shall be governed by

the terms of such instrument and applicable law and any limitations

on the capacity of the Government to make such grant due to the

public domain nature of the subject matter shall not affect the

validity of such instrument.

(4)Subject to sub-article (3), nothing in this Schedule shall

operate so as to

(a) grant or recognise private rights or entitlements over

land in the public domain to any person who, as of the

relevant date, does not have valid and enforceable

title, possession or other rights to land in the public

domain;

(b) impinge on the Government’s right to pursue any or all

legal remedies and, or to exercise any or all of its

powers under current law in relation to any person

claiming any right to land in the public domain where

such claim is not recognised as valid by the

Government;

(c) affect the operation of articles 2114 and 2115(2) of the

Code relating to the non-applicability of the provisions

on prescription against things which are extra

commercium or with regard to rights or actions of the

Government.

(5)Privately owned land shall be presumed not to be in the public

domain unless it is property of the type referred to in article 4(1) or

is the subject of a Public Domain Resolution as defined in article

4(2) of this Schedule.

(6)If the continuing exercise of private rights, as are preserved

by this article, materially endangers land in the public domain as

aforesaid or where the exercise of such rights is in material conflict

with the principles established in this Schedule in so far as the use

of such land and its future preservation are concerned, apart from

enforcing any agreement or applicable law in that regard, it shall be

lawful for the Government to request amendment to any grant,

concession or other agreement with the holder of such rights to

ensure the respect of the provisions of this Schedule.

Notwithstanding the terms of any agreement, the court shall have

the power to issue orders, as appropriate, on the use and future

preservation of the property in question for the duration of the

agreement.

Title II

OF THINGS BELONGING TO THE GOVERNMENT

PUBLIC PROPERTY AND PUBLIC DOMAIN

CIVIL CODE

3. (1) Things belonging to the Government shall be presumed

to be public property.

(2)Things in the public domain shall be presumed to belong to

the Government unless they are privately owned.

(3)Things shall be considered to be in the public domain, if

(a) they are of the type referred to in article 4(1) of this

Schedule; or

(b) after the relevant date, they are the subject of a

declaration, made in terms of article 4(2) of this

Schedule, and, where possible, are registered in

accordance with applicable law.

(4)The things, and their fruits and accessories, belonging to the

Government which may be the subject of a declaration that they

form part of the public domain are the following

(a) waterways, aqueducts, lakes, natural springs and

valleys;

(b) harbours, ports or parts thereof;

(c) public roads, public squares, all streets, alleys and

lanes and access routes, by whatever name called, to

other public places, including those leading to the

coastal perimeter or areas declared to be in the public

domain in accordance with this Schedule;

(d) woods, parks and other areas of ecological or

environmental importance;

(e) sites of cultural, social or historical importance

including bastions, fortifications and other similar

structures;

(f)

areas which serve the national security, such as

airports;

(g) the open countryside, including any cliff which does

not constitute part of the coastal perimeter;

(h) res sacrae, res sanctae and res religiosae;

(i)

movable things having cultural, social, archaeological,

artistic, ecological, environmental or historical

importance, including collections of museums, art

galleries, archives and libraries; and

(j)

generally things belonging to the Government which

serve direct and immediate public and collective utility

or which should be preserved for future generations

because of their public nature, common social,

historical or cultural nature, environmental importance

or natural or strategic importance.

(5)Any such declaration shall be subject to any private rights

which may exist over such property.

(6)The property of the type referred to in paragraphs (a), (d), (e)

and (g) which is privately owned may also be the subject of a

declaration that they form part of the public domain.

Title III

OF PUBLIC DOMAIN

4. (1) The following things, and their fruits and accessories,

shall be considered as property in the public domain by virtue of

this Schedule and without the need of any further declaration,

registration or other formality

(a) the coastal perimeter;

(b) internal waters such as bays, coves and other areas

which lie between the coastal perimeter and the

baselines from which the territorial waters are

measured and the relative seabed and subsoil and the

overlying water-column and its airspace provided they

are not harbours or ports; and

(c) the seabed and subsoil underlying the territorial seas

beyond the baselines from which the territorial waters

are measured and the relative seabed and subsoil and

the overlying water-column and its airspace.

(2)(i) The Executive Council as established under the Development

Planning Act of 2016 shall prepare a report on an annual basis which

will indicate those sites that have been proposed by the Minister

responsible for Lands, Members of Parliament or NGOs that it would

deem appropriate to be declared as public domain in conformity with

article 3 of sub-title 2 of this Act

Provided that prior to the completion of the report the

Executive Council shall carry out a public consultation

process.

(ii) The report shall thereafter be presented to the Minister

responsible for Lands, who in turn shall lay such

report on the Table of the House of Representatives by

the 15th September of every year.

(iii) The Minister shall cause the report to be laid on the

Table of the House of Representatives as soon as

possible but not later than one month from receipt.

(iv) The Speaker of the House shall refer the report to the

Standing Committee on the Environment, Climate

Change and Development Planning for its

consideration and comments.

(v) The report of the Standing Committee shall than be

forwarded to the Minister responsible for Lands who

shall present to the House of Representatives, for its

consideration, a Public Domain Resolution regarding

those sites which would have been so recommended by

the Standing Committee on the Environment, Climate

Change and Development Planning.

(3)Every Public Domain Resolution shall, as a minimum

(a) identify the property, its fruits and accessories;

(b) identify any Government powers or third party titles or

rights which shall continue to be enjoyed over the

thing, and the manner in which they are to be exercised

or enjoyed, notwithstanding the declaration;

(c) identify special laws or provisions thereof, if any,

which restrict the public access or enjoyment of such

property in accordance with this Schedule and which

shall continue to apply to such property

notwithstanding the declaration; and

(d) where applicable, be accompanied by a plan or general

map, based on the official map of the Land Registry,

identifying the property and the accessories which are

affected by such declaration.

(4)All Public Domain Resolutions shall be registered in the

relevant registry by the Minister responsible for Lands within two

months from their approval by the House of Representatives.

(5)Saving private rights and any concessions which may validly

exist, things in the public domain belonging to the Government

s h a l l b e e x t r a c o m m e rc i u m u n l e s s t h e y a r e d e c l a s s i f i e d i n

accordance with the provisions of Title VI of this Schedule, in

which case they shall no longer be treated as extra commercium but

only to the extent and for the purposes mentioned in the relevant

Declassification Resolution

Provided that things which have been declared to be in the public

domain by a Public Domain Resolution which are privately owned

shall not be considered as being extra commercium and they may

continue to be subject to transactions in accordance with the Code

or any other applicable law even if not declassified.

(6)Things in the public domain belonging to the Government

which have been declassified as provided for in this Schedule may

be subject to concessions or private rights in accordance with this

Schedule.

(7)The acquisition of any right by any private interest over any

thing in the public domain belonging to the Government which is

not declassified, other than by concession under article 7 of this

Schedule, shall be ipso jure null and void.

(8)Things in the public domain shall be subject to public domain

obligations, even when declassified, and no acquirer may plead

good faith so as to acquire free from such obligations.

(9)Actions and remedies enjoyed by the general public shall only

be those provided under public law.

(10)The principal obligation, which burdens an owner of a thing

in the public domain, whether owned by the Government or by a

voluntary organisation or by a private interest, is to preserve its

substance with regard both to matter and to form.

(11)Without prejudice to any private rights thereon, or as

otherwise expressly stated in any Declassification Resolution,

things in the public domain belonging to the Government are also

subject to a burden being the utility derived by the general public

and which is enjoyed by every person on mere sufferance. Public

utility includes collective rights such as public access, use, public

enjoyment of the fruits and accessories, accom modation to

necessities of trade, transit and communication or recreation and

any other use and subject to such restrictions as may be prescribed

by regulations made from time to time requiring a thing in the

public domain to be subject to such burden.

(12)Without prejudice to any private rights thereon, or as

otherwise expressly stated in any Declassification Resolution,

nothing in the preceding sub-articles shall imply that any person

may, in or over land in the public domain

(a) drive or ride any vehicle except over paths which

prevent damage to such property;

(b) light any fire or do any act which is likely to cause a

fire;

(c) wilfully damage anything thereon or therein;

(d) wilfully injure, remove or destroy any plant, shrub,

tree or root or any part thereof;

(e) affix or write any advertisement, bill, placard or

notice;

(f)

deposit any rubbish or leave any litter;

(g) engage in riotous, disorderly or indecent conduct; or

(h) wilfully disturb, annoy or obstruct any person engaged

in any lawful activity.

(13)Unless it is contrary to law or the declared or apparent

destination of the thing in the public domain prohibits it, or it is

otherwise prohibited by the Government in accordance with law,

things in the public domain belonging to the Government, or their

fruits and accessories, may be used or enjoyed, on sufferance, in

any amount necessary for an individual’s own personal use or

consumption. Where special laws require Government

authorisation also for personal use or enjoyment of things in the

public domain, such authorisation shall be a condition for public

use and enjoyment.

(14)In addition to any rights or powers it may have under any

law, licence, contract or otherwise, the Government may entertain

any civil or administrative action against any person who damages,

or by his actions threatens to damage, things in the public domain.

5. (1) When things in the public domain as defined in this

Schedule are subject to private rights, they shall remain public

domain and shall generally be burdened by public domain

obligations which arise due to their nature, limited by such private

rights in a manner consistent with their nature and subject to any

applicable law.

(2)Any person enjoying an existing title to or right over land in

the public domain shall register such title or right with reference to

the specific land in accordance with, and subject to, the provisions

of the Public Registry Act , the Land Registration Act or any other

applicable law having such effect, prior to the lapse of ten years

from -

(a) the designated date with reference to property referred

to in article 4(1); or

(b) the date on which any Public Domain Resolution is

registered in the relevant registry with reference to a

specific land,

and subject to the right of the Government or any other person

who may have an interest to contest such title or right in terms of

any applicable law.

(3)Any person acquiring titles or rights over things in the public

domain following declassification, shall register such title or right

in accordance with and subject to the provisions of the Public

Registry Act , the Land Registration Act or any other applicable

law having such effect within the period prescribed by law.

Title IV

DISPOSAL OF THINGS IN THE PUBLIC DOMAIN

6. (1) Apart from complying with the requirements

established by this Schedule in relation to declassification, the

disposal of things forming part of the public domain shall comply

with the provisions of the Disposal of Government Land Act or any

regulations made thereunder.

(2)The term "disposal" shall have the meaning attributed to it by

the said Act and the provisions of the said Act shall apply to public

domain mutatis mutandis.

Title V

CONCESSIONS AND GRANTS OF PUBLIC DOMAIN

7. (1) The Government may grant rights over any things in

the public domain by an administrative permit on condition that

such things in the public domain must be used consistently with

their nature.

(2)It shall not be necessary to declassify things in the public

domain in order for them to be the subject of an administrative

permit.

(3)Subject to more detailed terms or conditions which may be

prescribed by regulations made by the Prime Minister from time to

time regarding administrative permits, when an administrative

permit refers to things in the public domain, notwithstanding any

provisions of any agreement to the contrary, such grant shall be

(a) personal to the grantee thereof and shall not be

assignable nor shall it be capable of division and when

the grant is made to a legal organisation or a trust

which has shareholders or beneficiaries, as the case

may be, such shareholders or beneficiaries shall be

subject to the same conditions together with the legal

organisation or trust during the duration of such grant;

(b) revocable by the granting authority upon written

notice;

(c) subject to public domain obligations and conditions as

outlined in this Schedule; and

(d) initially granted for not more than ten years, and when

renewed, for not more than ten years at a time

Provided that when the grant by the Government is made to an

enrolled voluntary organisation the purposes of which reflect the

s a m e pr in c i pl e s of th is S c h e d ul e re lat in g t o th e m an ner of

administration of any property in the public domain, the conditions

mentioned above may be modified or waived.

(4)Administrative permits granting rights over the public domain

shall be registered in the relevant registry if their term exceeds two

years. Such registration shall not give to the grantee any ownership

or possessory rights and the rights shall remain as stated in the

preceding sub-article and any applicable law.

8. (1) Saving any grant which is made pursuant to a special

la w wh i c h m a y e xp r e s s l y m o di f y t he co n di t io ns h e r e u nd e r

specified, when things in the public domain are the subject of a

grant by the Government to private interests, the following

conditions shall apply

(a) except when the Declassification Resolution expressly

authorises the declassification to be for an indefinite

term because of its evident irreversibility, the grant

shall be for a specified term not exceeding one

hundred years and shall be, as far as reasonable

(i)proportionate to the nature of the interest or benefit

to be gained by the general public and to the

length of time during which such interest or

benefit actually subsists;

(ii) sufficient to fulfil the authorised use;

(iii) inversely proportionate to the extent to which

the general public is restricted access and use, so

that the greater the restriction on public use, the

shorter the period; and

(iv) inversely proportionate to the disruption of the

public function the thing used to serve, so that

the greater the disruption to public function of

the thing, the shorter the period;

and in any case shall not exceed the term for which the

thing was declassified;

(b) the purpose of the grant and subsequent use of the

thing shall be exclusively that for which the thing was

declassified;

(c) if reasonably possible, suitable alternatives are

provided to the general public which has been

deprived of the things it formerly used or enjoyed;

(d) except when the Declassification Resolution expressly

authorises the declassification to be for an indefinite

term because of its evident irreversibility, any

constructions, improvements or alterations made to

things in the public domain are to be removed on the

lapse of the term, unless the Government approves the

retention, for its own benefit or as it may consider in

the public interest, of such constructions,

improvements or alterations at the time of the

declassification or any time thereafter;

(e) except when the Declassification Resolution expressly

authorises modification of any thing in the public

domain, any damages, destruction or modification or

exploitation other than that expressly permitted, shall

be made good at the expense of the grantee;

(f)

unless expressly permitted by the Declassification

Resolution, and in such case subject to the express

conditions of the grant, the grant shall

(i)be personal to the grantee thereof and shall not be

assignable and when the grant is made to a legal

organisation or a trust which has shareholders or

beneficiaries, as the case may be, such

shareholders or beneficiaries shall be subject to

the same conditions together with the legal

organisation or trust during the duration of such

grant;

(ii) not be capable of division; and

(iii) not be capable of being the subject of security in

favour of a third party

Provided that when the grant by the Government is made to an

enrolled voluntary organisation the purposes of which reflect the

s a me p r in c i pl e s of t h is S c he du le r e l a t in g to th e ma nn e r o f

administration of any property in the public domain, the conditions

mentioned above may be modified or waived.

(2)The preceding sub-article shall be subject to the following

additional rules of interpretation

(a) should a grant be made for more than one hundred

years, it shall be valid only for one hundred years;

(b) should the grant exceed the term stated in the

Declassification Resolution, then the term of the grant

shall be reduced ipso jure to the term stated in the

Declassification Resolution;

(c) should the grant be made for a purpose not specified in

the Declassification Resolution, then such grant shall

be null and void and no rights whatsoever shall accrue

to any party by virtue thereof.

(3)Nothing in this Schedule or any Declassification Resolution

shall hinder the imposition by the Government of more onerous or

restrictive conditions at the time of any grant or disposal of the

relevant property in the public domain in order to better protect or

preserve the public domain nature of the property.

9. (1) When a thing in the public domain has been subjected

to private rights, on the termination, howsoever this occurs, of such

private rights, such thing shall revert ipso jure to the public

domain. On reversion, the thing shall be free from all rights and

claims, both personal and real.

(2)Such reversion shall also occur following the expiration of the

stated term or the impossibility or exhaustion of the purpose and

use for which the thing was declassified or granted, as the case may

be.

(3)Any thing which has, within the term of the original

D e c l a s s i f i c a t i o n Resolution, r e v e r t e d t o p u b l i c d o m a i n i n

accordance with this article may be re-granted for the remaining

period of the original grant without a new declassification provided

it is so re-granted within twelve months of the reversion.

(4)When a declassified thing reverts to the public domain after

the lapse of the specified term of the grant, the Government shall

seek to return the property into the public domain for at least

twenty-five years before declassifying it again, unless with the

support of a resolution of the House of Representatives.

(5)When immovable property in the public domain is

declassified and the declassification is expressly declared to be

indefinite in duration due to the irreversibility of the intended use

permitted by declassification, reversion to public domain shall not

take place and the property shall remain private or public free of

any public domain obligations including those referred to in article

4(10) of this Schedule.

Title VI

OF DECLASSIFICATION OF THE PUBLIC DOMAIN

10. (1) All things which are in the public domain, by nature or

by operation of the law, can be designated to be available for -

(a) the use and administration of such property by the

Government as public property; or

(b) the grant of titles or rights in favour of private

interests;

in accordance with the use to which the thing can lend itself,

generally without permitting the permanent alteration of its nature.

Such designations shall be for a purpose or purposes which are

specifically defined and being in the public interest. The Executive

Council as established under the Development Planning Act of 2016

shall receive such requests by the Minister responsible for Lands to

prepare a report following a public consultation process. The report shall

be referred to the Standing Committee for Environment and

Development Planning who in turn following its consideration and

comments shall forward its conclusions to the Minister responsible for

Lands. The Minister shall present to the House of Representatives for its

consideration, a Declassification Resolution. Such things shall be

referred to as declassified things.

(2)Following declassification, the declassified things shall still

r e t a i n t h e i r n a t u r e a s p u b li c dom a i n a n d , t o t h e e x t e n t n ot

incompatible herewith, shall still be subject to the rules in this

Schedule. Declassification, however, may impose restrictions on

continuing public enjoyment to the extent that public

administration or private use is subsequently permitted.

(3)Declassifications cannot take place in relation to classes of

things or the totality of such type of thing but can only be made

with reference to specific things susceptible to individual

designation and description.

(4)Declassification cannot take place except after a minimum

period of five years has elapsed, with regard to any public domain

property, from the date of enactment of a Public Domain Resolution

with regard to that property in particular, as mentioned in article

4(2) of this Schedule.

(5)Declassified things belonging to the Government become

capable of being the subject of a contract for the period of

declassification and are rendered susceptible to real rights and

charges and other encumbrances

Provided that any real rights, charges and other encumbrances

shall terminate ipso jure on the expiration of the contract term or on

the lapse of the declassification period, whichever is the earlier.

(6)The modification or conversion of things in the public domain

following declassification may be permitted by a Declassification

Resolution on condition that such modification or conversion shall

seek an outcome where the gain achieved by the general public is

clear and unambiguous.

11. (1) Declassification of things in the public domain shall be

m a d e b y m e a n s o f t h e i s s u e o f a resolution of the House of

Representatives, hereinafter referred to as a "Declassification

Resolution".

(2)Every Declassification Resolution shall, as a minimum

(a) identify the property, its fruits and accessories;

(b) identify the term, unless indefinite in scope in which

case it shall state so, the purpose and the use for which

declassification is taking place;

(c) declare what the projected existing or future public

rights or benefits are to be and what suitable

alternatives, if any, will be provided for any loss of use

or enjoyment of the thing by the public;

(d) identify any known Government powers or third party

rights which shall continue to be enjoyed over the

thing notwithstanding the declassification, provided

that this is without prejudice to the general powers of

the Government under any law and to private titles or

rights which may be registered within the time period

prescribed by law;

(e) seek to identify special laws or provisions thereof, if

any, which restrict the public access or enjoyment of

such property in accordance with this Schedule and

which shall continue to apply to such property

notwithstanding the declassification; and

(f)

where applicable, be accompanied by a plan or general

map, based on the official map of the Land Registry,

identifying the property and its accessories which are

affected by such declassification.

(3)All Declassification Resolutions shall be registered in the

relevant registry by the Minister responsible for Lands within two

months of the coming into force of the Act.

(4)Any grant made by the Government pursuant to a

Declassification Resolution shall be registered in the relevant

registry in accordance with applicable law.

(5)Any amendments or revocations made to Declassification

Resolutions shall be registered by the Minister responsible for

Lands in the relevant registry within two months from when such

amendments or revocations are made.

12. (1) In the following cases

(a) where the thing has reverted to its former public use

without objection of the title or rights holder for a

continuous period of two years;

(b) where it is used for a purpose which does not fall

within the parameters for which the declassification

was made;

(c) where the term for which it was declassified expires;

(d) where there is a substantial breach of the terms of any

grant, concession or an abuse of right;

the grantee shall be notified by judicial letter and, upon the lapse

of thirty days from such notification, the thing shall revert to the

public domain, unless such reversion is formally contested in a

court, in which case the effects are suspended until the court

decides the matter or the parties agree that compliance has been

achieved

Provided that during any such contestation the duty of the

grantee to pay any agreed compensation and to perform all public

domain obligations shall not be affected in any manner and in the

event of breach pendente lite, the court shall, even without demand

on the part of the Government, order the reversion to the public

domain on the basis of such breach without the need to determine

the issues under contestation.

(2)Where it is established by a final judgement of a court of civil

or criminal jurisdiction that the declassification was the fruit of

corruption, the declassification shall be invalid and all rights

accruing to any person pursuant thereto shall be null and void.

(3)Any person formerly vested with title to or rights over a thing

in the public domain shall, upon the happening of the events in the

preceding sub-articles, ipso jure become a mere holder and shall

have no further rights from the moment of notification and, without

prejudice to any other rights competent at law, the Government

shall have a right to register the reversion of the thing to the public

domain in the relevant registry.

(4)Where the Government is notified that a third party will be

granted or has lawfully been granted an interest dependant on the

title or right of the person enjoying the title or right, if so

authorised by the Declassification Resolution, the Government may

agree to such terms intended for the protection of such third party

rights in the event of default by the holder of the title or rights

Provided that the third party shall not enjoy such protection if he

consents to or participates in the breach giving rise to the default or

does not otherwise act in good faith when seeking protection under

this article.

13. (1) When third party rights are granted on declassified

immovables, the rights shall attach only to the things fastened to

the site and any improvements thereto as well as to its use but not

to any fruits or accessories to such immovables unless expressly

agreed.

(2)On termination of a grant of declassified things, the person

who enjoyed the rights to the use and enjoyment of the things shall,

at his expense, take all such action as is necessary to ensure that

things which may have been constructed or fastened to the property

shall be removed and the thing be restored to its condition prior to

the declassification or to as near a condition as possible, such

assessment to be made by the Government, unless the Government

approves their retention in accordance with article 8(1)(d) of this

Schedule or consents to their permanent modification or conversion

in the Declassification Resolution.

(3)In the event that the thing is not restored to the appropriate

condition, the Government shall have the power to clear the

property of any constructions, fastening or any other thing

whatsoever and shall have the power to administer and dispose of

the same. Additionally, the Government shall enjoy a special

privilege over such things and to any proceeds coming from the

lease, operation or sale of such things. The Government shall be

entitled to take from such proceeds any sum equivalent to the costs

and expenses incurred in restoring the thing to its original

condition but shall have no interest whatsoever in any excess

proceeds which shall be kept on trust for the grantee

Provided that subject to the terms of the grant, following the

termination of a grant, the Government may, at its discretion,

acquire any immovable thing remaining on the property upon

payment of a fair price to the grantee or relevant owner of the

immovable, such price to be determined by agreement or by the

court in case of disagreement.

14. (1) When property becomes part of the coastal perimeter

by human intervention, including excavation or development or

conversion into a marina, promenade, breakwater or otherwise, it

shall not thereby become public domain but shall be subject to

(a) any special conditions which may be imposed in any

Declassification Resolution or any permit for such

intervention; and

(b) any special laws which may be applicable to its

development and use.

(2)When any part of the seabed is reclaimed, any

Declassification Resolution shall expressly declare that the purpose

of the declassification is the reclamation of the area, giving full

description thereof, and -

(a) the area so reclaimed shall no longer be considered to

be public domain; and

(b) the coastal perimeter which is lost in the reclamation

shall be substituted ipso jure by the new coastal

perimeter emerging as a result of the reclamation.

15. (1) The Prime Minister shall have the power to make such

regulations as may be necessary so as to better regulate the matters

contained in this Schedule in relation to particular types of property

falling within the public domain or generally or for the better

functioning of the provisions of this Schedule including without

prejudice to the foregoing

(a) matters relating to registration of resolutions, titles,

rights and other matters referred to in this Schedule in

the relevant registry;

(b) defining in further detail the things described in article

3(4) of this Schedule;

(c) establishing the methodology to determine the

baselines for the calculation of the coastal perimeter;

(d) the publication in the Gazette, the Government’s

website or otherwise of information in addition to that

in the relevant registry;

(e) specifying the uses of things in the public domain, any

public domain obligations and any public and private

rights thereon, and any reservations and restrictions on

such things so as to better achieve the purposes of any

Public Domain Resolution or any Declassification

Resolution;

(f)

actions competent under this Schedule;

(g) the rights and remedies to protect private interests in

any things affected by any process implementing the

provisions of this Schedule;

(h) penalties and offences in relation to things in the

public domain, including offences relating to the

unauthorised occupation and use of things in public

domain, deprivation of access or use by the public and

related rights to damages and reimbursement of any

gains

Provided that any criminal punishments that may be

established by regulations made under this article shall

not exceed the penalty of imprisonment for a period of

two years or a fine (multa) of one million euro or both

such fine and imprisonment; and

(i)

the interplay between the provisions of this Schedule,

the provisions of the Code and the provisions of other

special laws.

(2)Nothing in this Schedule shall affect the provisions of or

anything done or which could be done under the

(a) the Petroleum (Production) Act;

(b) the Land (Compulsory Eviction) Act;

(c) the Disposal of Government Land Act;

(d) the Environment Protection Act;

(e) the Cultural Heritage Act;

(f)

the Authority for Transport in Malta Act;

(g) the Development Planning Act;

(h) the Crimes Against the Environment Act;

(i)

the Malta-Libya Continental

Shelf

Delimitation

(Ratification) Act;

(j)

the Continental Shelf Act;

(k) the Territorial Waters and Contiguous Zone Act;

(l)

Repealed by Act XVII.2024.11.

(m) the Fisheries Conservation and Management Act;

(n) any regulations made, or guidelines or notices issued,

under any of the above Acts;

and other special laws which may be designated by the Minister

responsible for Lands by notice in the Gazette, and such Minister

m a y, f r o m t i m e t o t i m e , i n c o n s u l t a t i o n w i t h t h e M i n i s t e r

designated in such laws, if different, make regulations to establish

the operation of any of the provisions of such special laws in the

light of the provisions of this S chedule so as to ensure the

achievement of the aims of this Schedule and such laws and the

compatible application thereof.

Transitory provisions in Act XXV.2016.6

6. (1) Where private titles or rights are claimed in any civil or

administrative proceedings, commenced at any time prior to the

coming into force of this Act, in relation to land in the public

domain, such private titles or rights shall be determined in

accordance with the law applicable prior to the coming into force of

this Act until they are finally determined by the relevant court or

tribunal or by any agreement between the parties.

(2)Where any private titles or rights over land considered to be in

the public domain belonging to the Government are not registered

or preserved in accordance with the Public Registry Act , the Land

Registration Act or any other applicable law having such effect, or

are not claimed in any proceedings as stated in sub-article (1)

commenced not later than ten years from the designated date, such

titles or rights shall be presumed to be mere encroachments to the

extent they are being tolerated or shall not be considered to exist as

a matter of law or to otherwise lapse.

The amendments introduced by this Act shall apply to all the

land in the public domain, saving titles or rights which are so

registered or preserved.

(3)The "designated date" shall be that established by the Minister

responsible for Lands by means of a notice published in the Gazette

for such purpose under the Public Registry Act and, or the Land

Registration Act and, or any other applicable law.

(4)The provisions of article 311 of the Code shall apply, in

accordance with their terms, with effect from the 1st January, 2016

to anything done on or after such date over the coastal perimeter or

land in the public domain, as defined in the Code.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) In regard to maintenance, the spouse shall have a prior

right over the parents or other ascendants.

(2) Where both children and spouse claim maintenance, they

shall be in a position of equality.

(3) It shall not be lawful for either of the spouses to claim

maintenance from the children or other descendants or from the

ascendants if such maintenance can be obtained from the other

spouse.

Laws of Malta — Chapter 16 — CIVIL CODE

The duty of one spouse to maintain the other shall cease if

the latter, having left the matrimonial home, without reasonable

cause refuses to return thereto.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) In case of any disagreement either spouse may apply to

the competent court for its assistance and the presiding judge, after

hearing the spouses and if deemed opportune any of the children

above the age of fourteen years residing with the spouses, shall

seek to bring about an amicable settlement of such disagreement.

(2) Where such amicable settlement is not attained and the

d is a g re e m e nt r e lat e s t o the es tablish ment or change o f the

matrimonial home or to other matters of fundamental importance,

the presiding judge, if so requested expressly by the spouses

jointly, shall determine the matter himself by providing the solution

which he deems most suitable in the interest of the family and

family life.

(3) No appeal shall in this case lie from the pronouncement of

the presiding judge.

Sub-title II

O F THE M UTUAL R IGHTS AND D UTIES OF A SCENDANTS,

D ESCENDANTS AND B ROTHERS

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Parents are bound to look after, maintain, instruct and

educate their children in the manner laid down in article 3B of this

Code.

(2) In default of the parents, or where the parents do not

possess sufficient means, the liability for the maintenance and

education of the children devolves on the other ascendants.

Laws of Malta — Chapter 16 — CIVIL CODE

The children are bound to maintain their parents or other

ascendants, who are indigent.

Laws of Malta — Chapter 16 — CIVIL CODE

A spouse shall not withhold his or her moral support to the

other in any obligation such other spouse may have towards his or

her descendants or ascendants.

Laws of Malta — Chapter 16 — CIVIL CODE

Where, according to the foregoing provisions of this sub-

title, there are more persons liable for maintenance, such persons

shall be so liable in the following order

(a) the children or descendants of the person claiming

maintenance, in the same order in which they would

according to law be vested with his or her succession;

(b) the parents;

(c) the other ascendants in the same order in which they

would according to law be vested with the succession

of the claimant.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The obligation of such persons as according to the

order set forth in the last preceding article are placed in the same

degree of liability, shall be a joint and several obligation.

(2) The persons, however, who according to such order, are

placed in a remoter degree shall have only a subsidiary liability, if

those in a nearer degree are unable to discharge their obligation.

(3) Nevertheless, it shall be lawful for the court, in urgent

cases, to condemn any of the persons liable for maintenance, in

whatever degree, to supply maintenance, reserving to such person

the right to claim reimbursement from such other persons as,

a c c o r d i n g t o t h e s a i d o r d e r, w e r e b o u n d t o s u p p l y s u c h

maintenance.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where several persons claim maintenance from a

person who is unable to supply maintenance to all of them, the

order set forth in article 12 shall be observed in determining the

right of priority of such claimants.

(2) Nevertheless, it shall be lawful for the court to depart from

the rule laid down in sub-article (1) of this article in cases of great

urgency, regard being had to the health, age or other circumstances

of the claimants.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The liability for maintenance shall extend to Siblings,

of the full or half-blood, only in default of other persons liable for

maintenance.

(2) In any such case the liability of siblings shall be joint and

several.

(3) The persons mentioned in article 12 shall, in all cases, have

a prior claim over siblings, except in cases of great urgency, regard

being had to health, age, or other circumstances.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The liability for maintenance, by reason of

consanguinity, shall only exist as between the persons, and in the

cases mentioned in the foregoing articles of this Sub-title.

(2) Such liability shall cease even in regard to such persons, if

the claimant shall have become indigent through his fault

Provided that this shall not apply where the claimant are the

parents, or other ascendant.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where a sibling has received maintenance, and, within

ten years of the last supply thereof, becomes able to repay the

amount so received, that sibling shall be bound to repay such amount

to the person supplying the maintenance, provided the demand for

reimbursement be made within the said time.

(2) In no other case, in the absence of an agreement to the

contrary, can a claim be made for reimbursement of the amount of

maintenance supplied under the provisions of this Code.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XXI.1993.12.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Maintenance shall include food, clothing, health and

habitation.

(2) In regard to children and other descendants, it shall also

include the expenses necessary for health and education.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Maintenance shall be due in proportion to the want of

the person claiming it and the means of the person liable thereto.

(2) In examining whether the claimant can otherwise provide

for his own maintenance, regard shall also be had to his ability to

exercise some profession, art, or trade.

(3) In estimating the means of the person bound to supply

maintenance, regard shall only be had to his earnings from the

exercise of any profession, art, or trade, to his salary or pension

payable by the Government or any other person, and to the fruits of

any movable or immovable property and any income accruing

under a trust.

(4) A person who cannot implement his obligation to supply

maintenance otherwise than by taking the claimant into his house,

s h a l l n o t b e d e e m e d t o p o s s e s s s u ff i c i e n t m e a n s t o su p p l y

maintenance, except where the claimant is an ascendant or a

descendant.

(5) In estimating the means of the person claiming maintenance

regard shall also be had to the value of any movable or immovable

property possessed by him as well as to any beneficial interest

under a trust.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where the person supplying maintenance becomes

unable to continue to supply such maintenance, in whole or in part,

he may demand that he be released from his obligation, or that the

amount of maintenance be reduced, as the case may be.

(2) The same shall apply where the indigence of the person

receiving maintenance shall cease, wholly or in part.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where maintenance has been furnished, no action will

lie for the repayment of such part thereof as may have been

furnished after the cessation of the cause for which maintenance

was due.

(2) Nor can the person to whom maintenance was due claim

from the person liable, upon the latter becoming able to supply

such maintenance, the amount thereof in respect of the time during

which the person liable for maintenance did not furnish it for want

of means.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The person bound to supply maintenance may not,

without just cause, be compelled to pay a maintenance allowance if

he offers to take and maintain into his own house the person

entitled to maintenance.

(2) Where maintenance is to be furnished out of the house of

the person liable thereto, he may, on good cause being shown,

supply such maintenance in kind instead of paying an allowance in

money.

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It shall not be lawful for any person to claim maintenance

from any of the persons liable thereto by reason of consanguinity, if

the claimant can, as donor, obtain maintenance from the donee,

under the provisions of article 1773 of this Code.

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(1) Upon a claim for maintenance, it shall be lawful for

the court, pendente lite, to order the defendant to pay to the

plaintiff an interim allowance in such amount as is necessary for

bare subsistence, provided the defendant be evidently one of the

persons who, if possessed of sufficient means, would according to

law be liable to supply maintenance to the plaintiff.

(2) Where in any such case the claim for maintenance is

disallowed, the defendant shall be entitled to claim, from the

plaintiff himself, or from the person bound to supply maintenance,

to such plaintiff, the reimbursement of any amount he may have

paid, together with interest thereon.

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(1) The obligation of any person to supply maintenance to

another shall cease if the person in whose favour such obligation is

established, shall contract marriage, notwithstanding the opposition

of the person liable as aforesaid, provided such opposition be made

on good grounds, and the demand from the release from such

obligation be made by the person objecting within the time of six

months following the celebration of the marriage.

(2) Such opposition shall only be operative if it is made by

means of a judicial act to be served on each of the parties intending

to contract the marriage, and filed in the registry of the civil court,

in the island in which the person objecting, or either of the said

parties, resides.

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For the purposes of the last preceding article, the want of

the necessary means of subsistence, having regard to the position of

the party to whom the opposition refers, or the bad character of the

other party, shall be deemed to be a good ground of opposition to

the proposed marriage.

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Where the marriage has been celebrated with a total or

partial dispensation from the previous publication of banns, and it

is not shown that the person subject to the obligation mentioned in

article 27, was aware of the proposed marriage at least fifteen days

prior to its celebration, it shall be lawful for such person, even in

default of the opposition referred to in that article, to demand,

within the time of six months following the marriage, his release

from the said obligation on any of the grounds on which such

opposition would have been effectual.

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Repealed by: XXI.1993.18.

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Besides the ground referred to in article 27, parents or

other ascendants may refuse maintenance to children or other

descendants on any of the grounds on which an ascendant may

disinherit a descendant.

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It shall be lawful for any person to refuse maintenance to a

brother or sister, on the ground of any grievous injury committed to

his detriment or to the detriment of his or her spouse or of any other

relative up to the degree of uncle or aunt, and nephew or niece,

inclusively.

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Nevertheless, in none of the cases referred to in the last

two preceding articles can maintenance be refused where the injury,

or other ground of refusal therein mentioned, has taken place very

long before the claim for maintenance is made.

Sub-title III

O F P ERSONAL S EPARATION

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(1) By personal separation pronounced by a judgment, or

authorised by a decree, of the competent civil court, the obligation

of cohabitation of the spouses shall cease for all civil effects.

(2) Separation pronounced by any other court shall not produce

any civil effects.

(3) The court shall, in the decree or judgement of personal

separation, clearly indicate the progressive number of registration of

the Act of Marriage and identification number of the parties, and order

the Registrar of Courts to notify the personal separation of the parties

to the Director of the Public Registry within the period established for

this purpose by the same court, for the Director of the Public Registry

to register that personal separation.

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Personal separation may not take place except on the

demand of one spouse against the other and on any of the grounds

stated in the following articles, or by mutual consent of the

spouses, as provided in article 59.

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(1) All suits for personal separation shall be brought

before the appropriate section of the Civil Court as may be

established by regulations made by the Minister

Provided that prior to the commencement of proceedings, a

demand may be made for determining the amount of an allowance

for maintenance during the pendency of the proceedings and for the

issue of a decree ordering the payment of such allowance or a

demand for the court to determine by decree who of the spouses, if

any, shall during the pendency of the proceedings continue to

reside in the matrimonial home.

(2) The application containing the demand referred to in the

proviso to sub-article (1) shall be duly appointed for hearing by the

court and shall be served on the respondent together with the notice

of such hearing

Provided that where domestic violence is involved, the said

application shall be appointed within four days and the court may,

of its own motion before or after hearing the parties, issue a

protection order under article 412C of the Criminal Code and, or a

treatment order under article 412D of the same Code and the

provisions of those articles shall mutatis mutandis apply to an order

issued under this article as if it were an order issued under the

corresponding article of the said Code

Provided further that for the purposes of this article and of

article 39, "domestic violence" shall have the same meaning

assigned to it by article 2 of the Gender Based Violence and

Domestic Violence Act.

(3) The court shall summarily hear the applicant and the

respondent and shall then, by decree, decide on the demand

Provided that the court may decide on the demand where

the applicant or the respondent or both the applicant and the

respondent fail to appear on the day of the hearing.

(4) The decree referred to in sub-article (3) shall be an

ex ecuti ve tit le deem ed t o be i nclu ded am ong st t he decre es

mentioned in article 253(a) of the Code of Organization and Civil

Procedure and shall be enforceable in the same manner and under

the same conditions in which such acts are executed.

(5) The decree referred to in sub-article (3) shall cease to be

enforceable if the action for separation is not instituted within two

months of the date of the decree or within such longer period as the

court may in the same or in a subsequent decree allow.

(6) The provisions of article 381 of the Code of Organization

and Civil Procedure in pursuance of which a court of contentious

jurisdiction may make the order therein specified shall apply,

mutatis mutandis, as if the court in that sub-article were a reference

to the appropriate section of the Civil Court before which the

demand referred to in the proviso to sub-article (1) is made.

(7) The decree and the order mentioned in this article may be

only reviewed, altered or revoked upon an application made by the

party seeking such review, alteration or revocation.

(8) Subject to the provisions of article 39 of the Constitution,

regulations made under this article may provide for the hearing of

causes in camera.

(9) The provisions of this article shall also apply in cases relating

to maintenance, access, and, or care and custody of children, even

when the parents are not married.

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Either of the spouses may demand separation on the ground

of adultery on the part of the other spouse.

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Where a law suit for personal separation has been filed by

either spouse, or a law suit for access, and, or, care and custody of

children has been filed, even when the parents are not married, and

evidence of acts of domestic violence has been produced, the court

may, either on an application of one of the parties or on its own

motion in order to protect the safety of the parties involved or in

the best interests of the child or children or of any other minor

dependants of any of the spouses, issue a protection order under

article 412C of the Criminal Code and, or a treatment order under

article 412D of the same Code and the provisions of those articles

shall mutatis mutandis apply to an order issued under this article as

if it were an order issued under the corresponding article of the said

Code.

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Either of the spouses may demand separation on the

grounds of excesses, cruelty, threats or grievous injury on the part

of the other against the plaintiff, or against any of his or her

children, or on the ground that the spouses cannot reasonably be

expected to live together as the marriage has irretrievably broken

down

Provided that the court may pronounce separation on the

ground that the marriage has irretrievably broken down

notwithstanding that, whether previously to or after the coming into

force of this article, none of the spouses had made a demand on such

ground.

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Either of the spouses may also demand separation if, for

two years or more, he or she shall have been deserted by the other,

without good grounds.

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(1) The action for separation shall be extinguished by the

reconciliation of the spouses.

(2) Nevertheless, where a fresh ground for separation arises,

the plaintiff may in support of his demand also allege the previous

grounds.

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The death of either of the spouses shall, except in the case

in which the judgment of separation may produce the effects

referred to in articles 48 to 52 inclusively, extinguish the action of

separation, even though such death takes place after the demand.

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The existence of grounds on which both spouses may

demand separation shall not operate so as to bar either of them from

bringing a suit for separation against the other.

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Nevertheless, where it appears that the defendant also had

grounds on which he or she might have demanded separation, the

court may take such grounds into consideration for the purposes of

the provisions contained in article 52.

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During the pendency of the action for separation, either

spouse, whether plaintiff or defendant, may leave the matrimonial

home and may, whether or not he or she has left the matrimonial

home demand that the court shall determine who of the spouses if

any shall reside in the matrimonial home during the pendency of

such action.

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During the pendency of the action for separation, either

spouse, whether plaintiff or defendant, may demand from the other

spouse a maintenance allowance in proportion to his or her needs

and the means of the other spouse, and taking into account also all

other circumstances of the spouses.

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During the pendency of the action the court shall give such

directions concerning the custody of the children as it may deem

appropriate, and in so doing the paramount consideration shall be

the welfare of the children

Provided that in cases where there is evidence of domestic

violence, the Court may limit or deny access to the children if such

access would put the children or the other parent at risk.

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(1) The spouse who shall have given cause to the

separation on any of the grounds referred to in articles 38 and 41,

shall forfeit -

(a) the rights established in articles 631, 633, 825, 826 and

827 of this Code;

(b) the things which he or she may have acquired from the

other spouse by a donation in contemplation of

marriage, or during marriage, or under any other

gratuitous title;

(c) any right which he or she may have to one moiety of

the acquests which may have been made by the

industry chiefly of the other spouse after a date to be

established by the court as corresponding to the date

when the spouse is to be considered as having given

sufficient cause to the separation. For the purposes of

this paragraph in order to determine whether an

acquest has been made by the industry chiefly of one

party, regard shall be had to the contributions in any

form of both spouses in accordance with article 3 of

this Code;

(d) the right to compel, under any circumstances, the other

spouse to supply maintenance to him or her in virtue of

the obligation arising from marriage.

(2) The things mentioned in paragraph (b) of sub-article (1) of

this article shall revert to the other spouse, and the acquests

mentioned in paragraph (c) of the said sub-article shall remain

entirely in favour of such spouse, saving any right which the

children or other third parties may have acquired thereon prior to

the registration of the judgment of separation in the Public

Registry.

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Repealed by: XXI.1993.30.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XXI.1993.30.

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Where separation is granted on any of the grounds

m e n t i o n e d i n ar t i c l e 4 0 , i t m a y p r o d u c e a n y o f t h e e ff e c t s

mentioned in article 48, if the court, having regard to the

circumstances of the case, deems it proper to apply the provisions

of that article, in whole or in part.

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It shall also be in the discretion of the court to determine,

according to circumstances, whether the provisions of article 48

shall be applied, wholly or in part, in regard to both spouses or to

one of them, or whether they shall not be applied at all in regard to

either of them, if both spouses shall have been guilty of acts

constituting good grounds for separation.

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The spouse who has obtained separation shall retain every

right or benefit which he or she may have acquired from the other

spouse, even though such right or benefit may have been granted to

him or her on condition of reciprocity, and such reciprocity does

not take place.

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(1) The spouse against whom the separation is pronounced

shall not, as a result of such separation, be relieved from the

obligation of supplying maintenance to the other spouse, where,

according to the provisions of Sub-title I of this Title, such

maintenance is due.

(2) The amount of maintenance referred to in sub-article (1),

and the maintenance due to children in the event of separation,

shall be determined having regard to the means of the spouses, their

ability to work and their needs, and regard shall also be had to all

the other circumstances of the spouses and of the children,

including the following

(a) the needs of the children, after considering all their

circumstances;

(b) any disability, as defined in the Equal Opportunities

(Persons with Disability) Act, whether such disability

is physical or mental;

(c) circumstances of illness which are of such seriousness

and gravity as to compromise the ability of the spouses

or of the children to maintain themselves;

(d) whether the ability of the party to whom maintenance

is due to have earnings of whatever nature was

diminished by reason of that party having, during the

marriage, taken care of the household, the other party

and the upbringing of the children of the marriage;

(e) every income or benefit which the spouses, or any of

them, receive according to law, other than social

assistance that is not contributory which is paid to

them under the Social Security Act

Provided that for the purposes of this paragraph the

disability pension payable in terms of article 27 of the

Social Security Act shall be taken into consideration;

(f)

the accommodation requirements of the spouses and of

the children;

(g) the amount which would have been due to each of the

parties as a benefit, including, but not limited to, a benefit

under a pension scheme, which by reason of the

separation, that party will forfeit the opportunity or

possibility of acquiring.

(3) The provisions of article 381(2) of the Code of

Organization and Civil Procedure shall apply mutatis mutandis

provided that the said article shall be construed to mean that, even

where no demand is made by a party to whom maintenance is due,

either for that party or for the children, for the application of the

provisions of that article, the court may apply the said article out of

its own motion.

(4) In granting maintenance, the court may also provide for the

manner in which the same may increase from time to time.

(5) Notwithstanding any other provision of this Code, on

separation being pronounced, the court may if it deems it

appropriate in the circumstances, order the spouse liable to supply

maintenance to pay to the other spouse, in lieu of the whole or part

of such maintenance, a lump sum, which the court deems sufficient

in order to make the spouse to whom maintenance is due financially

independent or less dependent of the other spouse, as the case may

be

Provided that for the purposes of this sub-article, the court

may also order the Director General of Social Security to transfer a

portion of social security contributions of the spouse liable to supply

maintenance to the spouse to whom maintenance is due, which portion

of contributions so being transferred, when adding also the contributions

which the party who is receiving said transfer had paid in the said party’s

own name during marriage, shall not exceed in total thereof one-half of

the total contributions paid by the two (2) parties together during their

marriage.

(6) For the purposes of sub-article (5), the court shall, among

the circumstances, consider the possibility of the person to whom

maintenance is due, of receiving training or retraining in a

profession, art, trade or other activity or to commence or continue

an activity which generates an income, and order the lump sum for

that purpose.

(7) The court may direct, according to circumstances, that the

payment of a lump sum referred to in the previous sub-articles of

this article, be made by equal or unequal instalments spread over a

reasonable period of time.

(8) The court may also direct that in lieu of all or part of the

lump sum referred to in sub-article (5), the spouse liable thereto

shall assign to the other spouse property in ownership or in

usufruct, use or habitation.

(9) Where there is a supervening change in the means of the

spouse liable to supply maintenance or the needs of the other

spouse, the court may, on the demand of either spouse, order that

such maintenance be varied or stopped as the case may be. Where

however, a lump sum or an assignment of property has been paid or

made in total satisfaction of the obligation of a spouse to supply

maintenance to the other spouse, all liability of the former to

supply maintenance to the latter shall cease. Where instead, the

lump sum or assignment of property has been paid or made only in

partial satisfaction of the said obligation, the court shall, when

ordering such lump sum payment or assignment of property,

determine at the same time the portion of the maintenance satisfied

thereby and any supervening change shall in that case be only in

respect of the part not so satisfied and in the same proportion

thereto.

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(1) The court may, at any time during the cause for

separation, upon the demand of any of the spouses, order the

cessation of the community of acquests or of the community of

residue under separate administration existing between the spouses.

(2) The order for the cessation of the community as provided in

sub-article (1) shall be given by means of a judgement from which

every p art y sh all hav e a r ig ht of ap peal, w it hou t requ iring

permission from the court for this purpose.

(3) The order of cessation shall have effect between the

spouses from the date of the judgement on appeal or, if no appeal is

entered, from the date when the time allowed for the appeal lapses,

and it shall remain valid even if the cause for separation is

discontinued.

(4) Prior to ordering the cessation of the community as

provided in this article, the court shall consider whether any of the

parties shall suffer a disproportionate prejudice by reason of the

cessation of the community before the judgement of separation.

(5) The order of cessation under this article shall, at the expense of

the party who demanded such cessation, be notified to the Director of

Public Registry and it shall have effect as if the cessation of the

community of acquests or of the community of residue under separate

administration were made by public deed.

(6) Unless the court, in its discretion, upon the demand of one of

the parties, shall have ordered the cessation of the community of

acquests or of the community of residue under separate administration

existing between the parties at the time of commencement of the cause

for separation, on separation being pronounced, the court shall direct

that the community of acquests or the community of residue under

separate administration shall cease as from the day on which the

judgement becomes res judicata.

(7) The court may however where in its opinion circumstances

so warrant direct that an asset or assets comprised in the

community be not partitioned before the lapse of such period after

the cessation of the community as it may in its direction determine.

(8) Any direction given by the court in virtue of sub-article (7),

may on good cause being shown, be changed or revoked by the

court.

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(1) In pronouncing the judgement of separation, the court

shall on the demand of either of the parties, order, according to

circumstances

(a) that any one of the parties shall be entitled to reside in

the matrimonial home, to the exclusion of the other

party, for the period and under those conditions as it

considers appropriate; or

(b) that the matrimonial home is to be sold, where it is

satisfied that the parties and their children shall have

adequate alternative accommodation, and that the

proceeds of the sale shall be assigned to the parties as

it considers appropriate; or

(c) where the matrimonial home belongs to both parties,

to assign the matrimonial home to any one of the

parties, which party shall compensate the other party

for the financial loss suffered

Provided that, in every case, the court shall consider the

following

(a) the best interest of the minor children, including the

impact that there may be on the minor children if the

court were to grant a demand made according to this

article;

(b) the welfare of the parties and of the children; and

(c) whether the parties have, or, whether their means and

abilities permit them to have, another place where to

reside.

(2) The court may, upon a demand of either party, vary a decision

taken by it under sub-article (1)(a), where there is a substantial change

in circumstances.

(3) The provisions of article 3A(2) shall not apply in the case

of spouses who are legally separated, unless the contrary is not

agreed to between the spouses or is ordered by the court having

jurisdiction to pronounce the personal separation; and such

agreement or order shall only be effective in regard to third parties

as from the date when the deed or order is registered in the Public

Registry.

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(1) On separation being pronounced the court shall also

direct to which of the spouses custody of the children shall be

entrusted, the paramount consideration being the welfare of the

children.

(2) It shall be lawful for the court, if it considers such measures

to be strictly necessary, having regard to all relevant circumstances,

to direct that the children be placed in the custody of persons in loco

parentis, of third parties, or in alternative forms of care.

(3) It shall be lawful for the court to give any such directions in

the judgment of separation, although in the action relating thereto

no demand has been made respecting the custody of the children.

(4) The court may, at any time, revoke or vary such directions

respecting the children, where the interests of the children so

require.

(5) The court may moreover where circumstances so require,

determine that one or both of the parents shall be deprived wholly

or in part of the rights of parental authority.

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The Court may, for grave reasons, at any time during the

cause for separation, and or, divorce, or when the parties are

separated and, or divorced, upon the demand of one of the parties,

or of its own motion declare that the other party is not fit to have

the custody of the minor children of the parties, and where the

Court issues such a declaration, the party so declared, upon the

death of the other party, shall not be entitled to assume the custody

of the minor children without the authorisation of the Court

Provided that evidence of domestic violence shall constitute

a grave reason for the purposes of this article.

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(1) Whosoever may be the person to whom the minor

children are entrusted, the spouses shall maintain their right to watch

over their maintenance and education, and shall still be bound to

contribute thereto, according to law

Provided that this right may be suspended if the exercise

thereof would put either the children or the other parent at a risk of

harm.

(2) It shall be in the discretion of the court, according to

circumstances, to fix the time, place, and manner in which the

spouses shall have access to the children

Provided that the right of access may be withdrawn by the

Court when the spouse who is granted such right of access fails to

exercise such right without reasonable cause.

(3) It shall be lawful for the court entirely to forbid such access

to their minor children if it may be detrimental to the welfare of such

minors or to the welfare of anyone of the parents.

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(1) The court may, where it shall deem it expedient so to

do in the interest of the spouses and the children, order the

suspension of the action of separation for such time as it may deem

proper, and give such interim directions as circumstances may

require.

(2) The decree ordering the suspension of the action, or giving

such interim directions, shall be subject to appeal.

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(1) Personal separation may, subject to the authority of the

court by means of a decree in accordance with article 35, be

effected by mutual consent of the spouses, by means of a public

deed.

(2) The court shall, before giving its authority, admonish the

parties as to the consequences of the separation, shall endeavour to

reconcile them, and may revoke, modify or add those conditions it may

deem fit.

(3) This decree shall have the same effect of the judgment

given by the competent court.

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(1) The court, on authorizing the separation, shall in the

decree give its directions as to the person in whose custody the

children are to be placed.

(2) It shall be lawful for the court at any time to revoke or vary

such directions, for the better welfare of the children.

(3) Notwithstanding the provisions of any other law, it shall be

lawful for either of the spouses to renounce in a public deed of

separation to the succession of the other spouse.

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(1) Any agreement between the spouses respecting the

custody of the children may at any time, on the demand of either of

the spouses, or of any relative of either of the spouses, be annulled

by the competent court, where the interests of the children so

require.

(2) In any such case, the court shall give the necessary

directions as to the person in whose custody the children are to be

placed, and as to the mode of their maintenance and education.

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(1) Notwithstanding the provisions of article 4, the spouses

may, on separation, choose to revert to their surname at birth or to

the surname at the time of their marriage.

(2) In the case of a consensual separation, a declaration of such

choice shall be made in the public deed of separation, and in the

case of a judicial separation, by a note filed in the records of the

case before final judgment.

(3) The court may, at the request of one of the spouses, which

may be made at any time before judgment, prohibit the other

s p o u s e f r o m c o n t i n u i n g t o u s e t h e f o r m e r ’s s u r n a m e a f t e r

separation, where such use may cause grave prejudice to the spouse

requesting the prohibition.

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Personal separation shall only be operative in regard to

third parties from the day on which the judgment or the public

deed, as the case may be, shall have been registered in the Public

Registry. Any such registration shall include a reference to any

declaration or prohibition with regard to the surname of the spouses

after the judgment.

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The spouses separated whether by a judgment or by mutual

consent may at any time reunite, and thus put an end to the effects

of separation, wholly or in part, saving any right which third parties

may have acquired.

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(1) Voluntary cohabitation shall operate as a reunion, and

shall restore the obligations of cohabitation and of maintenance

arising from marriage.

(2) Any other effect of the separation, however, shall not cease

except in virtue of a public deed.

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Any such deed may take place even after the spouses shall

have returned to cohabitation, but, in any such case, the deed shall

be void if it is not made with the authority of the court.

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In all cases, the effects of the separation shall not cease in

regard to third parties, except from the day on which the deed is

registered in the Public Registry.

Sub-title IV

OF DIVORCE

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(1) Each of the spouses shall have the right to demand

divorce or dissolution of the marriage as provided in this Sub-Title.

It shall not be required that, prior to the demand of divorce, the

spouses shall be separated from each other by means of a contract

or of a judgement.

(2) The divorce or dissolution of the marriage shall be granted

by virtue of a judgement of the competent civil court, upon the

demand of one or the other of the spouses, or by a decree of the

same court where the spouses shall have agreed that their marriage

should be dissolved.

(3) All demands for divorce shall be brought before the

appropriate section of the civil court as established by regulations

made by the Minister, and the provisions of article 37 shall apply

mutatis mutandis. The decrees and judgements of divorce shall be

pronounced in open court.

(4) The court shall, in the decree or judgement of divorce,

clearly indicate the progressive number of registration of the Act of

Marriage and identification number of the parties, and order the

Registrar of Courts to notify the divorce of the parties to the

Director of Public Registry within the period allowed for this

purpose by the same court, so that the same shall be registered in

the Public Registry.

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* Without prejudice to the following provisions of this

article, divorce shall not be granted except upon a demand made

jointly by the two spouses or by one of them against the other

spouse, and unless the Court is satisfied that

(a) upon a demand made jointly by the two spouses, on the

date of commencement of the divorce proceedings, the

spouses shall have lived apart for a period of, or

periods that amount to, at least 6 months out of the

preceding year

Provided that when the demand is made by one of the

spouses against the other spouse, on the date of

commencement of the divorce proceedings, the spouses

shall have lived apart for a period of, or periods that

amount to, at least one year out of the preceding two

years; or

(b) on the date of commencement of the divorce

proceedings, the spouses are separated by means of a

contract or court judgment; and

(c) there is no reasonable prospect of reconciliation

between the spouses; and

(d) the spouses and all of their children are receiving

adequate maintenance, where this is due, according to

their particular circumstances, as provided in article

57

Provided that the spouses may, at any time, renounce their

right to maintenance

Provided further that for purposes of this paragraph,

maintenance ordered by the court by a judgement of separation or

agreed to between the spouses in a contract of separation, shall be

deemed to be adequate maintenance

Provided further that a divorce pronounced between

spouses who were separated by a contract or by a judgement shall

not bring about any change in what was ordered or agreed to

between them, except for the effects of divorce resulting from the

law.

Laws of Malta — Chapter 16 — CIVIL CODE

After the court considers the requirements of article 66B

to have been satisfied, the court shall hear and decide on the

demands made by the parties as provided in this Sub-Title and it

shall proceed to pronounce the divorce of the parties.

*Article 12 of Act XIV of 2011

"12. A bill for an Act of Parliament amending, deleting or substituting the

provisions of paragraphs (a), (b) and (c) of article 66B as provided in clause 9 of this

Act shall not be presented to the President for his assent unless, not less than three nor

more than six months after its passage through the House, it has been submitted to the

electors qualified to vote for the election of members of the House of Representatives

and the majority of electors voting have approved the bill

Provided that it shall not be required to submit the bill to the electors qualified to

vote for the election of members of the House of Representatives after its passage

through the House as provided in this article, if not less than three months and not

more than six months after the publication of the Bill in the Government Gazette after

the approval of its First Reading in the House of Representatives, the bill was

submitted to the electors qualified to vote for the election of members of the House of

Representatives and the majority of electors voting have approved the bill.". -

Repealed by Act XXV of 2021.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Without prejudice to the other provisions of this Sub-

Title, where an application for divorce is made by one of the

spouses, it shall not be necessary for the spouse making the demand

to impute to the other party any fault leading to the making of such

demand.

(2) Where the spouses are already separated by means of a

contract or a court judgement, the spouse making the demand for

divorce may only demand the dissolution of the marriage. The

other party may contest the demand by proving that the spouse

demanding the divorce has not paid maintenance that was due as

ordered by the court or agreed to in the separation contract and that,

if the demand for divorce were to be accepted, it would be more

d i ff i c u l t f o r t h e s a i d o t h e r p a r t y t o o b t a i n t h e p a y m e n t o f

maintenance. The court shall not grant the demand for divorce

where any of the said defences are shown to be valid.

(3) Where the spouses are not separated by means of a contract

or a court judgement, the spouse making the demand for divorce

may, together with the same demand, make all those demands that

are permissible in a cause for separation in accordance with Sub-

Title III of this Title. The court shall hear and determine these

demands as provided in the said provisions mutatis mutandis. The

other party may, in addition to the defences mentioned in previous

sub-article, put forward all those defences which that party would

have been entitled to make in a cause for separation.

(4) Where the spouses are not separated by means of a contract

or a court judgement, the Court shall have mutatis mutandis all the

powers granted to it under Sub-Title III of this Title with regard to

orders which it is entitled to give pendente lite.

(5) Notwithstanding the other provisions of this article and

only where the community of acquests or the community of residue

under separate administration shall have ceased, the parties shall

have a right, in any case, if they both agree, to divorce without

liquidating the assets which they hold in common.

Laws of Malta — Chapter 16 — CIVIL CODE

Without prejudice to the other provisions of this Sub-Title,

where the court, on the demand of one of the parties, finds the other

party responsible for causing the breakdown of the marriage for the

reasons provided in articles 38, 40 and 41, the court may apply

mutatis mutandis the provisions of article 48 against that party.

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(1) Each party in a cause for separation may, at any time

during the cause, but not after the cause has been adjourned for

judgement, demand, by means of an application, that the demand

for separation made in that cause be instead considered as a

demand for the pronouncement of divorce. When such a claim is

made, the court shall hear the parties in order to verify that the

conditions stipulated in article 66B for the filing of a demand for

divorce are satisfied. The court shall decide upon the said claim in

a judgement given in open court which shall not be subject to

appeal except together with the final judgement.

(2) Any witnesses declared and documents presented with the

cause for separation shall apply mutatis mutandis when the said

cause is converted into divorce proceedings. This without prejudice

to the possibility that either party may produce further documents

and witnesses during the divorce proceedings which are related to

the demand for divorce.

(3) Where neither party elects to proceed as provided in sub-

article (1) and where a demand for separation has already been

made in accordance with Sub-Title III of this Title and at least one

of the parties, after the making of that demand, makes a demand for

divorce, the demands for separation and for divorce shall, in any

case, be heard and decided together by the same court in such a

manner that the connection of causes shall be applied by the court

without the necessity of any demand by the parties.

(4) Either party, upon making a demand for divorce, shall

declare on oath whether either that party or the other party have

already made a demand for separation under Sub-Title III of this

Title.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The advocate assisting the applicant shall, before

commencing proceedings according to article 66B, where the

spouses are not separated by means of a contract or a court

judgement

(a) discuss the possibility of reconciliation with the

applicant and give the applicant the names and

addresses of persons qualified to offer assistance in the

process of reconciliation between spouses; and

(b) ensure that the applicant is aware of the option of

personal separation as an alternative to divorce.

(2) The application

for

the

commencement

of

divorce

proceedings shall

(a) where the spouses are not separated by means of a

contract or a court judgement, be accompanied by a

note in which the advocate confirms that he has

observed the requirements of sub-article (1); or

(b) where the spouses are separated by means of a court

judgement, be accompanied by a legal copy of the

judgement of separation or, where the spouses are

separated by means of a contract, be accompanied by a

legal copy of the contract of consensual separation

Provided that where the advocate assisting a client in a

cause for divorce shall not have presented the said note, the copy of

the judgement of separation or of the contract of consensual

separation, as the case may be, the advocate shall present these

documents not later than, or during, the first sitting in the cause

Provided further that, for purposes of this article, "the

applicant" means a person who makes an application, who is

preparing an application or who intends making an application to

the court in order to obtain a divorce.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The advocate assisting the respondent shall, without

delay after receiving instructions from the respondent about the

case, where the spouses are not separated by means of a contract or

a court judgement, discuss the possibility of reconciliation with the

respondent and give the respondent the names and addresses of

persons qualified to offer assistance in the process of reconciliation

between spouses.

(2) Where the spouses are not separated by means of a contract

or a court judgement, the respondent’s reply to the application for

divorce shall be accompanied by a note in which the advocate

confirms that he has observed the requirements of sub-article (1)

Provided that where the advocate assisting a client in a

cause for divorce shall not have presented the said note, the

advocate shall present that note not later than, or during, the first

sitting in the cause.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where a demand for divorce is made to the competent

civil court by either of the spouses, or by both spouses after having

agreed that their marriage is to be dissolved, and where the spouses

are not separated by means of a contract or a court judgement,

before granting leave to the spouses to proceed for divorce, the

court shall summon the parties to appear before a mediator, either

appointed by it or with the mutual consent of the parties, and this

for the purpose of attempting reconciliation between the spouses,

and where that reconciliation is not achieved, and where the

spouses have not already agreed on the terms of the divorce, for the

purpose of enabling the parties to conclude the divorce on the basis

of an agreement. The said agreement shall be made on some or all

or of the following terms

(a) the care and the custody of the children;

(b) the access of the two parties to the children;

(c) the maintenance of the spouses or of one of them and

of each child;

(d) residence in the matrimonial home;

(e) the division of the community of acquests or the

community of residue under separate administration.

(2) Where a demand for divorce is made to the competent civil

court by either of the spouses, or by both spouses after having

agreed that their marriage is to be dissolved, also where the spouses

are separated by means of a contract or a court judgement, the court

may, where it considers it necessary to do so, either on its own

initiative or upon the request of the mediator or of one of the

spouses

(a) appoint a children’s advocate to represent the interests

of the minor children of the parties, or of any of them;

and

(b) hear the minor children of the parties, or any of them,

where it considers it to be in their best interest to do

so

Provided that in any divorce proceedings before the

competent civil court as referred to in this article, the court may

order the parties to present information about the payment of

children’s maintenance.

(3) The court may, in the judgement accepting the demand for

divorce, and upon a demand of that party to whom, during the

hearing of the cause, maintenance was due for the party or for the

c h i l d r e n , f r o m t h e o t h e r p a r t y, o r d e r t h a t t h e p a y m e n t o f

maintenance from the other party be safeguarded by means of an

appropriate and reasonable guarantee, in accordance with the

circumstances of the parties. That guarantee shall not be of an

amount exceeding the amount of maintenance for five years. The

court shall grant the said order only where, from the evidence in the

cause, it results that during the hearing or prior to the

commencement of the cause, the party from whom the guarantee is

demanded was in default in its obligation to pay maintenance, or

where there are serious objective circumstances which demonstrate

the necessity of the said guarantee. A demand as provided for in

this sub-article may also be made at any time after the said

judgement, when maintenance is due.

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(1) The Minister may make regulations establishing a

register of persons qualified to assist the parties involved in the

process of reconciliation.

(2) The Minister may make regulations to establish the

procedure related to the mediation between the parties as provided

in this Sub-Title.

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Any verbal or written communication made between the

spouses or made by a third party in the course of an attempt at

reconciliation or for the purpose of an agreement being reached

between the spouses on some or all the terms mentioned in article

66I(1), or any reference thereto, shall not be admissible as evidence

during divorce proceedings.

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(1) When the competent civil court pronounces a divorce

between the spouses, they shall have the right to remarry.

(2) The pronouncement of divorce shall have no effect upon the

rights and obligations of the parties as parents in respect of their

children or upon any agreement reached between the parties in

respect of the custody of their children, without prejudice to the

provisions of article 56A.

(3) The pronouncement of divorce shall have no effect upon the

rights of third parties arising out of any agreement or obligation

already concluded, or still to be concluded, by the divorced parties.

(4) The pronouncement of divorce as provided in sub-article

(1) has the following effects

(a) the obligation of cohabitation of the parties shall, for

all civil effects, cease;

(b) article 62 shall apply mutatis mutandis; and

(c) the rights of the spouses to the succession of each

other shall cease with effect from the day when the

decree or judgement of divorce becomes res judicata.

(5) The provisions of articles 54(7), 55A and 56A shall apply

mutatis mutandis where the court considers it necessary to apply

them after having considered the reasons brought before it.

(6) Without prejudice to the provisions of article 66D(5), sub-

articles (4) to (10) of article 1332 and articles 1334, 1335, 1336,

1337 and 1340 shall apply mutatis mutandis to the partition of

property between the spouses.

Laws of Malta — Chapter 16 — CIVIL CODE

When the party receiving maintenance, whether by virtue

of an order of the court or by virtue of a contract of separation,

remarries or enters into a personal relationship which brings about

an obligation of maintenance by a third party in favour of that

party, the same party shall forfeit the right to receive maintenance

payable in respect of that party by the other party in the divorce,

with effect from the date of the remarriage or of the commencement

of the aforesaid other relationship. This article shall also apply in

the case where the parties had agreed in a contract of separation

that the agreement regarding maintenance of the parties, or of

either of them, shall continue to have effect and cannot be altered

in the event of remarriage or of another relationship as aforesaid of

the party receiving maintenance

Provided that an order for maintenance that has been made

or authorised by the court to be paid by means of a lump sum in

favour of the party who remarries or who enters into another

relationship as provided in this article shall retain its effect

notwithstanding that the party in whose favour it is made remarries

or enters into another relationship as aforesaid.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Notwithstanding the provisions of any other law, the

courts of civil jurisdiction shall have jurisdiction to hear and

determine a demand for divorce only if at least one of the following

requirements is satisfied

(a) at least one of the spouses was domiciled in Malta on

the date of the filing of the demand for divorce before

the competent civil court;

(b) at least one of the spouses was ordinarily resident in

Malta for a period of one year immediately preceding

the filing of the demand for divorce.

(2) Notwithstanding the provisions of sub-article (1), where a

cause for personal separation in accordance with Sub-Title III of

this Title is pending before a court of civil jurisdiction in Malta,

including a cause being heard at appeal stage, and the court has

jurisdiction to hear and determine that cause, the courts of civil

jurisdiction in Malta shall also have jurisdiction to hear and

determine a demand for divorce between the same parties. *

Title II

O F F ILIATION

Sub-title I

O F THE F ILIATION OF C HILDREN CONCEIVED OR BORN IN

W EDLOCK

Laws of Malta — Chapter 16 — CIVIL CODE

A child conceived in wedlock is held to be the child of the

spouses.

Laws of Malta — Chapter 16 — CIVIL CODE

A child born not before one hundred and eighty days from

the celebration of the marriage, nor after three hundred days from

the dissolution or annulment of the marriage, shall be deemed to

have been conceived in wedlock.

Laws of Malta — Chapter 16 — CIVIL CODE

The spouse who has not given birth cannot repudiate a child

born before the lapse of one hundred and eighty days after the

marriage in any of the following cases

(a) if, before the marriage, such spouse was aware of the

pregnancy;

(b) if such spouse has made the declaration required for

the drawing up of the act of birth, acknowledging

oneself to be the parent of the child;

(c) if the child be declared not viable.

*Article 11 of Act XIV of 2011

"11. (1) There shall be a Committee to be known as "the Committee for the

Adaptation of Laws due to the introduction of Divorce".

(2) The Committee shall consist of a representative of the Minister, who shall be

the Chairperson, and of two other members one of whom shall be a representative of

the Minister responsible for Social Policy and the other shall be a representative of the

Minister responsible for Finance.

(3) The Committee shall have the function of advising the Prime Minister on any

amendments that have to be made to any law or regulation which, directly or

indirectly, refers to personal separation between the spouses for the purpose of

adapting the same to the introduction of divorce.

(4) The Committee shall until the 29 th February 2012 make a report of its

recommendations to the Prime Minister.

(5) Without prejudice to the powers of the Parliament of Malta, the Prime Minister

may, by means of an order made until the 30 th June 2012 make any amendments to

any law or regulation as indicated in sub-article (3) as may appear to him to be

necessary or expedient and those amendments may be given retroactive effect as from

the 1 st October 2011, saving any acquired rights.

(6) Any order made in accordance with the provisions of sub-article (5) shall as

soon as may be after it is made, be laid on the Table of the House and shall have effect

upon the lapse of the period of twenty-eight days after it is so laid, unless the House

within that period resolves that the order be annulled or amended, whereupon that

order shall have no effect or shall have effect as amended, as the case may be.

(7) In reckoning for the purposes of sub-article (6) any period of twenty-eight days

therein referred to, no account shall be taken of any time during which the House is

not in session or during which it is adjourned for more than seven days.".

Laws of Malta — Chapter 16 — CIVIL CODE

(1)

Any spouse, except for the spouse who gave birth to

the child, may bring an action to repudiate a child born in wedlock

(a) if such spouse proves that during the time from the

three hundredth day to the one-hundred-and-eightieth

day before the birth of the child, such spouse was in

the physical impossibility of cohabiting with the

spouse who gave birth on account of being away from

the said spouse, or some other accident; or

(b) if such spouse proves that during the said time such

spouse was de facto or legally separated from the

spouse who gave birth

Provided that such spouse may not repudiate the child

if there has been, during that time, a reunion, even if

temporary between the spouses; or

(c) if such spouse proves that during the said time such

spouse was afflicted by impotency, even if such

impotency was only an impotency to generate; or

(d) if such spouse proves that during the said time the

spouse who gave birth had committed adultery or that,

that spouse had concealed the pregnancy and the birth

of the child; or

(e) if such spouse produces evidence of any other fact

which may also be genetic and scientific tests and data

that tends to exclude such parenthood.

(2)

The declaration of the spouse who gave birth to the effect that

the other spouse is not the natural parent of the child shall be given

consideration in an action regarding the exclusion of the other spouse as

parent.

(3)

When the action referred to in the sub-article (1) is brought,

the Civil Court (Family Section) may require any of the spouses, the

child, and the alleged natural parent, as appropriate, to consent to a

genetic test of parentage, and to acquiesce to the taking of a genetic

sample appropriate for the test, which sample must be taken according

to the current provisions of the law

Provided that where the said consent is not given by the

parties, the Civil Court (Family Section) must substitute that consent

that has not been given and order acquiescence in the taking of a sample.

(4)

In the absence of genetic and scientific evidence, the Civil

Court (Family Section) may consider any other evidence presented

which it deems to be relevant, including the drawing of inferences from

the fact that a person did not provide a genetic sample, despite being

ordered to do so.

(5)

The Civil Court (Family Section) shall dismiss the

application if and as long as the clarification of the natural parentage

would result in a considerable adverse effect on the best interests of the

minor child, which would be unreasonable for the child, even taking into

account the concerns of the person entitled to bring the action.

(6)

A person who has consented to a genetic test of parentage and

has given a genetic sample may require the person entitled to bring the

action who has had a parentage test made, to permit inspection of the

genetic test of parentage report or to provide a copy. The Civil Court

(Family Section) shall decide disputes arising from the claim under sub-

article (1).

(7)

The action mentioned in this article shall be decided by virtue

of a decree, which decree may be appealed according to the procedure

contemplated in article 229(2) of the Code of Organization and Civil

Procedure.

(8) Without prejudice to the provisions of the second proviso of

article 73, if in its judgment the Civil Court (Family Section)

declares that the spouse is not the natural parent of the child, it

shall have effect to change the child’s surname and that of his

descendants to reflect the surname of the other spouse only, unless

the Court, having regard to all the relevant circumstances, provides

otherwise in its judgment.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Whenever the clarification of natural parentage of a

child is required

(a) the spouse may require the spouse who gave birth and

the child;

(b) the spouse who gave birth may require the spouse and

the child;

(c) the child may require both parents; and

(d) the alleged natural parent may require both spouses

and the child,

to consent to a genetic test of parentage and to acquiesce to the

taking of a genetic sample appropriate for the test, which

sample must then be taken according to the then current

provisions of the law.

(2) On the application, mentioned in sub-article (1), of a person

entitled to clarify, the Civil Court (Family Section) may require any

of the spouses, the child, and the alleged natural parent, as

appropriate, to consent to a genetic test of parentage, and to

acquiesce to the taking of a genetic sample appropriate for the test,

which sample must be taken according to the current provisions of

the law

Provided that where the said consent is not given by the

parties, the Civil Court (Family Section) must substitute that

consent that has not been given and order acquiescence in the

taking of a sample.

(3) In the absence of genetic and scientific evidence, the Civil

Court (Family Section) may consider any other evidence presented

which it deems to be relevant, including the drawing of inferences

from the fact that a person did not provide a genetic sample, despite

being ordered to do so.

(4)

The Civil Court (Family Section) shall dismiss the

application if and as long as the clarification of the natural

parentage would result in a considerable adverse effect on the best

interests of the minor child, which would be unreasonable for the

child, even taking into account the concerns of the person entitled

to bring the action.

(5) A person who has consented to a genetic test of parentage

and has given a genetic sample may require the person entitled to

bring the action who has had a parentage test made, to permit

inspection of the genetic test of parentage report or to provide a

copy. The Civil Court (Family Section) shall decide disputes

arising from the claim under sub-article (1).

(6) The action mentioned in sub-article (1) shall be decided by

virtue of a decree, which decree may be appealed according to the

procedure contemplated in article 229(2) of the Code of Organization

and Civil Procedure.

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Repealed by: XXI.1993.37.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XXI.1993.37.

Laws of Malta — Chapter 16 — CIVIL CODE

Where it is competent for the spouses to bring an action to

disown a child, they must bring such action

(a) within 6 months from the day of birth, if the spouse

was then in Malta;

(b) within 6 months of his return to Malta, if the spouse

was absent at the time of the birth;

(c) within 6 months of the discovery of the fraud, if the

birth was concealed

Provided that, without prejudice to the

provisions of article 70(4), the Family Court may,

upon an application of any one of the spouses and, if

possible, after having heard all the parties interested,

and after having considered the rights of the applicant

and of the child, at any time authorise the applicant to

institute an action to disown a child born in wedlock to

the other spouse

Provided further that where an action to disown a

child is instituted by one of the spouses after the lapse of

the periods stipulated in paragraphs (a), (b) or (c) in

accordance with the first proviso to this article, any

judgment whereby the child is disowned shall not have

the effect of changing the surname of the child or of any

other person who took his surname from the child unless

the court, upon the demand of any of the parties made

either in the sworn application whereby the action is

commenced or in a separate application made during the

action, provides otherwise.

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Where any one of the spouses dies without having brought

the action for disavowal, but before the expiration of the time

provided in article 73(a), (b) or (c), the heirs may bring such action

within six months to be reckoned from the day on which the

property of the deceased shall have passed into the hands of the

child, or from the day on which the heirs shall have been by the

child disturbed in the possession of such property.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The action for disavowal shall be directed -

(a) against the child if he is of age; or

(b) if the child is a minor or under any disability to be

sued, against a curator appointed by the court before

which the action is brought

Provided that the court may depute the tutor already

appointed to the child.

(2)

In all cases, the other spouse shall be made a party to the

suit.

Laws of Malta — Chapter 16 — CIVIL CODE

The filiation of a child born three hundred days after the

dissolution or annulment of the marriage may be impeached by any

person interested.

Laws of Malta — Chapter 16 — CIVIL CODE

Without prejudice to the provisions of article 81, the

filiation of a child born in wedlock may also be impeached by any

person interested

(a) if he proves that, during the time from the three-

hundredth day to the one-hundred-and-eightieth day

before the birth of the child, the husband was in the

physical impossibility of cohabiting with his wife on

account of his being away from her or some other

accident; or

(b) if he proves that, during the said time, the wife had

committed adultery, and furthermore produces

evidence of any other fact which may also be genetic

and scientific tests and data that tends to exclude the

husband as the natural father of the child.

Laws of Malta — Chapter 16 — CIVIL CODE

Without prejudice to the provisions of article 81, any person

claiming to be the natural parent of a child born in wedlock, or that

person’s heirs if the person was deceased before the child is born, may

proceed by sworn application before the competent court against the

spouses and child, or their respective heirs if anyone of them is

deceased, in order to be declared as the natural parent of the child, and

only if that person produces evidence that during the time from the

three-hundredth day to the one-hundred-and-eightieth day before the

birth of the child, the spouse who gave birth had committed adultery

with that person and furthermore produces evidence of any other fact

which may also be genetic and scientific tests and data that tends to

exclude one of the spouses as the natural parent of the child.

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A judicial demand for a declaration of parenthood as mentioned

in the previous article may also be exercised by the parent who gave

birth by sworn application before the competent court against the other

spouse, the natural parent and the child born in wedlock, provided that

the applicant produces evidence that during the time from the three-

hundredth day to the one-hundred-and-eightieth day before the birth of

the child that parent had committed adultery with the person who the

said parent is demanding to be declared as the natural parent and

furthermore produces evidence of any other fact which may also be

genetic and scientific tests and data that tends to indicate that person as

the natural parent of the child.

Laws of Malta — Chapter 16 — CIVIL CODE

In the cases referred to in articles 77, 77A and 77B the

person claiming to be the natural parent of the child born in wedlock,

or the spouse who gave birth as the case may be, may proceed with the

action for the declaration of parenthood if their sworn application is

filed within six months from the birth of the child

Provided that the Civil Court (Family Section) may, after

the sworn application of the person claiming to be the natural parent of

the child born in wedlock or the spouse who gave birth and, if possible

after having heard all the parties interested, and after having

considered the rights of the plaintiff and the child, at any time

authorise the person claiming to be the natural parent of the child born

in wedlock, or the spouse who gave birth to institute an action for the

declaration of parenthood as mentioned in articles 77A and 77B

Provided further that, when the filiation of a person has been

declared by the court, any person who in consequence of such

declaration is to assume a surname other than the surname used by

such person before such declaration, or his legitimate representative,

may request the competent court by application against the Director of

the Public Registry to be allowed to continue to use such other

surname, and the court if it is satisfied that third parties will not be

prejudiced thereby and, where the application has been done on behalf

of the minor, that such use shall be in the best interest of the minor,

shall accede to such request and order the Director to make an

annotation of its decision on the relevant act of birth of the person

whose filiation has been so declared.

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In actions which are referred to in articles 77, 77A, 77B

and 77C, the court may invite the parties to submit to examinations

as referred to in article 70A.

Sub-title II

O F THE P ROOF OF F ILIATION OF C HILDREN

CONCEIVED OR BORN IN WEDLOCK

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(1) The filiation of children conceived or born in wedlock

is proved by the act of birth registered in the Public Registry.

(2)

It may also be proved by the parochial registers.

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In default of evidence as provided in the last preceding

article, the continued possession of the status of a child conceived

or born in wedlock shall be sufficient.

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(1) Such possession shall be established by a series of

facts which, collectively, go to show the connection of filiation and

relationship between an individual and the family to which he

claims to belong.

(2)

Such facts are chiefly the following

(a) in the case of spouses who have contracted marriage

before the coming into force of the Marriage Act and

other Laws (Amendment) Act, 2017 * that the

individual has always borne the surname of the father

of whom he claims to be the child;

(b) in the case of children born to spouses who have

contracted marriage after the coming into force of the

Marriage Act and other Laws (Amendment) Act, 2017,

that the individual has always borne the Family Name of

the spouses of whom he claims to be the child;

(c) that the parents have treated the child as their own, and

have, as such, provided for the child's maintenance,

education, and establishment in life;

(d) that he has been constantly acknowledged as such in

society;

(e) that he has been acknowledged as such by the family.

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(1) No person may claim a status contrary to that which is

attributed to him by the act of birth as a child conceived or born in

wedlock and the possession of a status in conformity therewith.

(2) Likewise, it shall not be lawful to contest the status of a

child conceived or born in wedlock in respect of a person who

possesses a status in conformity with his act of birth.

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In default of the act of birth and the possession of status, or

if the child shall have been registered under a false name, or as

being born of parents uncertain, or in case of supposition or

substitution of a child, although in these last two cases, there exists

an act of birth in conformity with the status possessed by the child,

the proof of filiation may be made by any other evidence

admissible according to law.

*The provisions of Act XXIII of 2017 came into force on the 1st of September,

2017. See Legal Notice 212 of 2017.

Laws of Malta — Chapter 16 — CIVIL CODE

Proof to the contrary may be made by evidence tending to

show that the claimant is not the child of the person that he alleges

has given birth to him, or, where this is proved, that he is not the

child of the other spouse.

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No prescription shall run for an action for a child to establish

his proper filiation.

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(1) Nevertheless, where the child failed to bring such

action, it may not be brought by his heirs or descendants, unless he

died in the period of nonage, or within five years after attaining his

majority.

(2) Where the child has brought the action and dies during its

pendency, his heirs or descendants may continue the proceedings.

Sub-title III

O F THE F ILIATION OF C HILDREN CONCEIVED AND BORN OUT

OF WEDLOCK AND OF THE PRESUMPTION THAT A PERSON WAS

CONCEIVED OR BORN IN WEDLOCK

§ I . O F THE F ILIATION OF C HILDREN CONCEIVED

AND BORN OUT OF WEDLOCK

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(1) A child conceived or born out of wedlock may be

acknowledged by the parents, either jointly or separately

Provided that the acknowledgement of a child born out

of wedlock by a person claiming to be the parent who did not give

birth, made separately from the parent who gave birth, shall not have

effect and shall not be registered unless the latter, or the latter’s heirs

in the case of death, and the child himself if he is of age, shall have

been served with a judicial letter by any person interested stating that

such person intends to apply for the registration of such

acknowledgement, and the parent who gave birth or the heirs, as the

case may be, and the child, shall not have within a period of two

months from such service, by a note filed in the acts of the said

judicial letter, agreed to such registration, in which case the said

judicial letter and agreement note showing agreement shall be served

upon the Director of the Public Registry who shall register the said

acknowledgement in the relative acts of civil status

Provided further that where the parent who gave birth, or

the child, where he is of age, does not as aforesaid agree to such

registration, any person interested may proceed by application before

the competent court against the person or persons who shall not have

so agreed, for the court to declare that the person making the

acknowledgement is the parent who did not give birth, and to order

the registration of such acknowledgement in the relative acts of civil

status.

(2) Where both parents, or the heirs of the parent who gave birth,

where that parent who gave birth is dead, agree to change the surname

indicated in the act of birth at the point of registration, a reference to

such agreement shall be made in the judicial letter and relative note as

mentioned in sub-article (1), provided that such surname is permissible

in terms of article 92(1).

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(1) The parent who gave birth to a child conceived or born

out of wedlock who is not acknowledged by the parent who did not

give birth, and that same child, may at all times make a judicial

demand in order that there may be established the parent who did not

give birth and for the court to order the registration of the parent who

did not give birth in the relative acts of civil status.

(2) The judicial demand referred to in sub-article (1) may also

be sought by the heirs or the descendants of the child if the same

circumstances as those which are referred to in article 85 will exist.

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(1) The acknowledgment of a child conceived and born

out of wedlock may be made in the act of birth, or by any other

public deed either before or after the birth.

(2) Any declaration of parenthood made otherwise by either of

the parents, or by both, or by a minor, can only be admitted as

evidence of filiation in an affiliation suit.

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An acknowledgment shall only operate in regard to the

parent making it, and it shall not confer on the child so

acknowledged any right against the other parent.

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A child conceived and born out of wedlock born to a

spouse before or during marriage, and acknowledged during a

marriage may not be brought into the matrimonial home, except

with the consent of the other spouse, unless such other spouse has

already given his or her consent to the acknowledgement.

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(1) The parent who has acknowledged a child conceived

and born out of wedlock shall have in regard to him all the rights of

parental authority other than the legal usufruct.

(2) If the interests of the child so require, the court may order

that only one of the parents shall exercise the rights of parental

authority;

(3) The Court may also restrict the exercise of the

aforementioned rights and, in serious cases, exclude both parents

from the exercise of these rights.

(4) The Court may also restrict the exercise of the aforementioned

rights where one or both of the parents are convicted with one or more

of the offences listed in Title VII of Part II of Book First of the

Criminal Code.

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In default of parental authority, the appointment of a tutor

to a child conceived and born out of wedlock shall be made by such

court as may be prescribed by or under any law in force from time

to time.

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(1) If a child conceived and born out of wedlock has been

acknowledged by the parent who did not give birth, that child shall

assume the surname of any of the parents, or the surname of both

parents, in the order they choose.

(2)A child who has not been acknowledged by the parent who did

not give birth shall assume the surname of the parent who gave

birth.

(3)If the child conceived and born out of wedlock has been

acknowledged jointly by both parents on the Act of Birth, the

surname by which that child shall be known shall be declared in

terms of article 292A.

(4) In any of the cases provided for in sub-articles (1) and (3)

(a) the combination of the parents’ surnames shall not

result in a surname which is longer than the

combination of four surnames; and

(b) when the surname of any one or both of the parents

already has a combination of two or more surnames,

the order of the surname of that parent shall be

retained, and the child shall not change such order and,

or drop any part of that surname.

(5)All children conceived and born out of wedlock and

acknowledged by the same parents shall be given the same

surname, in accordance with the surname given to the first child so

acknowledged.

(6)This article shall also apply to any child conceived and born

out of wedlock in Malta prior to the coming into force of the Civil

Code and Various Other Laws (Amendment) Act, 2020

2020. Provided that both parents, or one of the parents where

the other parent is deceased, or the tutor or curator where both parents

are deceased, shall deliver, or cause to be delivered to the Director of

the Public Registry, Form WW contained in Part II of the First

Schedule to this Code, showing that the child is to assume a new

surname in terms of this article

Provided further that such note may not be made after

the lapse of five (5) years after the coming into force of the Civil

Code and Various Other Laws (Amendment) Act, 2020

2020. Provided further that where the child is of age, Form

WW shall be delivered to the Director of the Public Registry by that

child

Provided further that upon receipt of such Form, the

Director of the Public Registry shall make an annotation of this

declaration on those acts of civil status where that child appears.

(7) The provisions of sub-article (6) shall also apply to any child

conceived and born out of wedlock in respect of whom Form W had

been submitted to the Director of the Public Registry.

(8) The declaration made by means of Form WW shall be

irrevocable and shall only have effect on the surname of the child

conceived and born out of wedlock.

(9) The spouse and descendants of the person in respect of whom

Form WW had been submitted to the Director of the Public

Registry, may, by not later than three (3) years following the date of

submission of Form WW, also submit to the Director of the Public

Registry Form XX contained in Part II of the First Schedule to this

Code, declaring that they wish to use the same surname as their

spouse’s or ascendant’s surname as duly annotated in the respective

acts of civil status by virtue of sub-article (6). Upon receipt of such

form the Director of the Public Registry shall make an annotation

of this declaration on every act of the civil status of the person in

respect of whom Form XX has been submitted

Provided that where the child is under the age of

eighteen (18) the declarations made by means of Form XX shall be

made by the parents, or by one of the parents if the other is deceased,

or, if both parents are deceased, by their tutor or curator

Provided further that where Form XX is submitted by

the spouse, such declaration shall not affect the surname as indicated

in that spouse’s Act of Birth.

(10) The provisions of sub-article (9) shall also apply to any

descendant in respect of whom Form X had been submitted, and to

the spouse of the descendant who has submitted Form XX.

(11) For the purposes of this article, a declaration of

parenthood by a judgment of the competent court shall have the same

effect as an acknowledgment.

(12) Notwithstanding the provisions of this article or of any

other article in this Code, where the parenthood of a person has been

acknowledged, the filiation of a person has been declared by the

Court, or the presumption referred to in articles 101 to 112 has been

made to apply, any person who in consequence of such

acknowledgement, declaration, or the application of the presumption,

is to assume a surname other than the surname used before such

acknowledgement, filiation, or application of the presumption, or his

legitimate representative may by means of an application against the

Director of the Public Registry request the competent court to be

allowed to continue to use such other surname, and the court, if

satisfied that third parties will not be prejudiced thereby, and, where

the application has been done on behalf of the minor, that such use

shall be in the best interest of the minor, shall accede to such request

and order the Director to make an annotation of its decision on the

relevant Act of Birth of the person so acknowledged, or whose

filiation has been so declared, or in relation to whom the said

presumption is to apply.

(13) For the purposes of this article, "surname" shall include the

surname of the parent at birth or the surname of the parent at the time

of the child’s birth.

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Without prejudice to the provisions of article 89, parents of

children conceived and born out of wedlock shall have in respect to

such children and their descendants the same duty to maintain and

e d u c a t e t h e m a s t h e y h a v e w i th r e g a r d t o ch i l d r e n b o r n o r

conceived in wedlock, and such children shall have in respect of

their ascendants and other relatives the same rights and duties as

children born or conceived in wedlock.

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Repealed by: XVIII.2004.15.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.15.

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The parent, whether he or she has acknowledged the child

or not, may deny maintenance if such child refuses, without just

cause, to follow the directions of the parent in regard to his conduct

and education.

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It shall also be lawful for the parent, whether he or she has

acknowledged the child or not, to deny maintenance to the child, if

such child refuses to live in the house which the parent for just

cause and with the approval of the court has appointed for his

habitation, as also in any other case in which according to law it is

competent to a parent to refuse maintenance to a child conceived or

born in wedlock.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.17.

Laws of Malta — Chapter 16 — CIVIL CODE

An acknowledgment of a child conceived or born in

wedlock may be impeached by the child as well as by any other

party interested.

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A judicial demand for a declarator of paternity or maternity

may also be contested by any party interested.

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In causes to which this Sub-Title makes reference, the court

may, without prejudice to any evidence that may be produced by the

parties according to law, requires the parties to submit to examinations

as referred to in article 70A, and in the same manner and in the same

circumstances.

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(1) Children adopted jointly by partners to a civil union

contracted between persons of the same sex under the Civil Unions

Act, or recognised by the said Act shall, notwithstanding the other

provisions of this Code or of any other law, be recognised for all

intents and purposes of law as having parents of the same sex and

all rights and obligations of parents towards their children and of

children towards their parents under this Code or under any other

law shall apply to such children and parents.

(2) Whenever a law or administrative measure requires a

person to declare the name or other particulars of the mother or the

father, a person adopted jointly by partners in a civil union as

referred to in sub-article (1) shall be entitled to declare the names

or other particulars of the two partners in the said civil union

instead of the said particulars of the mother or the father.

§ II . O F THE PRESUMPTION THAT A PERSON

WAS CONCEIVED OR BORN IN WEDLOCK

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Where parents of children conceived and born out of

wedlock subsequently marry, or where the court of voluntary

jurisdiction so decrees, such children shall be deemed iuris et de

iure to have always been conceived or born in wedlock.

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The presumption arising out of subsequent marriage in

accordance with the preceding article shall not take place unless the

children have been acknowledged by both parents by means of a

declaration in the act of marriage, or otherwise as provided in sub-

article (1) of article 87, or unless their paternity and maternity have

been declared by a judgment of the court

Provided that the family name chosen by the parents upon

their marriage may also be adopted by the children who shall be

deemed iuris et de iure to have always been conceived or born in

wedlock by virtue of that marriage.

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Children deemed to have been conceived or born in

wedlock by subsequent marriage of their parents shall be vested

with the rights of children conceived or born in wedlock as from

the day of the celebration of the marriage, if they shall have been

acknowledged on that day or previously, or if their filiation shall

have been declared before the marriage by a judgment of the court.

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Where the acknowledgment or judicial declarator takes

place after the marriage, the children shall only acquire the rights

of children conceived or born in wedlock as from the day of such

acknowledgment or declarator.

Laws of Malta — Chapter 16 — CIVIL CODE

The marriage of the parents shall bring about the

presumption that even their predeceased children were conceived

or born in wedlock, and such presumption shall also operate in

favour of the descendants of the latter, whether conceived or born

in wedlock, or so presumed to be by subsequent marriage, provided

such predeceased children shall have been acknowledged as

provided in article 102, or their paternity or maternity shall have

been declared by a judgement of the Court.

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The presumption in virtue of a decree of the court shall

take effect by virtue of the decree itself, and no other act shall be

required. For the purposes of this article "the court" means such

court or courts as may be prescribed by or under any law in force

from time to time.

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The presumption referred to in the last preceding article

may not be granted unless -

(a) it is demanded by the parent wishing to have such

presumption apply to the child; and

(b) where such parent is married, it is proved that his or

her spouse has given his or her consent thereto; and

(c) the consent of the child, if of age, or his welfare, if a

minor, is proved.

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The Court shall have power, according to circumstances,

to refuse to apply the presumption in virtue of a decree of the said

court in accordance with article 102, where the applicant can make

such presumption applicable in favour of his child by subsequent

marriage, or has children who were conceived or born in wedlock,

or so presumed by subsequent marriage, or descendants of such

children.

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The presumption shall, upon the demand of the registrar of

the said court, be registered in the Public Registry, as provided

under articles 290 and 291 within fifteen (15) days from the date of

notification of the decree to the Director of the Public Registry, unless

it has already been registered upon the demand of any other person.

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Subject to the provisions of article 92, a child in whose

favour there is a presumption in virtue of a decree of the competent

court shall assume

(a) the family name adopted by the spouses in terms of

article 4, where the presumption has taken place upon

the demand of either one of the parents, or both

parents together; or

(b) the surname of any of the parents, or the surname of

both parents, in the order they choose, where the

presumption has taken place upon the demand of either

one of the parents, or both parents together, and their

marriage was contracted prior the coming into force of

the Marriage Act and other Laws (Amendment) Act,

2017. 2017; or

(c) the surname chosen by both parents in virtue of Form

Y contained in Part II of the First Schedule to this

Code, as appropriate.

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(1) Subject to any other provision of this Code in regard

to succession, the parent and the child in whose favour operates a

presumption in virtue of article 102 shall, as from the date of the

decree, be in respect to each other in the same condition as a parent

and a child conceived or born in wedlock.

(2) Such child shall not acquire any other right deriving from

consanguinity.

Laws of Malta — Chapter 16 — CIVIL CODE

Where one of the parents has, in a will or other public

deed, declared his or her wish to have the presumption that a child

was conceived or born in wedlock, applicable to a child born to him

or her out of wedlock, such child may, after the death of such

parent, make a demand to have such presumption applicable in his

regard, saving the power of the court as provided in article 108, in

case the deceased shall have left children, conceived or born in

wedlock, or so presumed to be in virtue of a subsequent marriage.

Title III

O F A DOPTION

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(1) For the purposes of this Title and of any regulations

made thereunder a person shall be deemed to make or participate in

arrangements for the adoption of a person if he enters into or makes

any agreement or arrangement for, or for facilitating, the adoption

of a person by any other person.

(2)

In this Code and in any other law, unless the context

otherwise requires -

(a) any reference to a person or persons related to another

person in any line or degree shall, in respect of an

adopter or an adopted person or in tracing the

relationship through an adopter or an adopted person,

be construed as a reference to the person or persons

who would be so related to him if the adopted person

were the child of the adopter born to him or her in

lawful wedlock and were not the child of any other

person, and without prejudice to the generality of this

provision, any reference to the name, names or

surname of the parent or parents of an adopted person

shall be construed as a reference to the name, names or

surname of the adoptive parent or parents;

(b) "adoption" means an adoption effected under this Code

and in accordance with the provisions of the Adoption

Administration Act and, subject to such conditions and

other provisions, and with effect from such date, if

any, as may be contained in an order made by the

Minister under this sub-article, includes an

intercountry adoption; and grammatical variations

thereof or cognate expressions shall be construed

accordingly;

(c) "Adoption Board" shall have the same meaning

assigned to it by article 2 of the Adoption

Administration Act;

(d) "children conceived and born out of wedlock" means

children so conceived and so born or such children in

whose favour the presumption referred to in articles

101 to 112 of this Code does not apply, and who have

not in either case been adopted;

(e) "family mediator" means a mediator as specified in the

Civil Court (Family Section), the Civil Court (General

Jurisdiction) and the Court of Magistrates (Gozo)

(Superior Jurisdiction) (Family Section) Regulations;

(f) "foster carer" shall have the same meaning as assigned

to it in article 2 of the Minor Protection (Alternative

Care) Act;

(g) "intercountry adoption" shall have the meaning

assigned to it by article 2 of the Adoption

Administration Act;

(h) "social worker" shall have the meaning assigned to it

by article 2 of the Social Work Profession Act;

(i) "Adoption Service within the Directorate for Alternative

Care (Children and Youth)" shall have the same meaning

as assigned to it in article 2 of the Adoption

Administration Act.

(3) For the purposes of this Title, unless the context otherwise

requires

(a) "accredited agency" shall have the same meaning

assigned to it by article 2 of the Adoption Administration

Act;

(b) "Board of Appeal" shall have the same meaning assigned

to it by article 2 of the Adoption Administration Act;

(c) "central authority" shall have the same meaning assigned

to it by article 2 of the Adoption Administration Act;

(d) "child" means a person under eighteen years of age;

(e) "country of origin" in respect of intercountry adoption

shall mean the country from which a child is adopted;

(f)

"Hague Convention" means the Convention on Protection

of Children and Co-Operation In Respect of Intercountry

Adoption;

(g) "open adoption" shall have the same meaning assigned

to it by article 2 of the Adoption Administration Act.

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(1) Adoption may only take place with the authority of

the competent court (hereinafter in this Title referred to as "the

court") granted by decree (hereinafter referred to as "an adoption

decree") following a recommendation made by the Adoption

Board, made on the application of a person of either sex.

(2)

An adoption decree may be made on the application of two

spouses, civil union partners or cohabitants whose cohabitation is

regulated by means of a contract in accordance with the Cohabitation

Act, or of cohabitants whose cohabitation is enrolled by means of a

public deed under the Cohabitation Act, 2020, authorizing them

2020. jointly to adopt a person and may not be made on the application of

only one of such spouse, civil union partner or cohabitant

Provided that, where the person to be adopted is the natural

offspring of either of the spouses, a civil union partner or a cohabitant

in a cohabitation registered under the Cohabitation Act or enrolled by

means of a public deed under the Cohabitation Act, 2020, in that

2020. eventuality, subject to the provisions of article 115(3)(c), the adoption

decree may be made notwithstanding that the application is filed only

by the natural parent of the person to be adopted and the Court shall

not be bound to request or review the recommendation of the Adoption

Board.

(3) Save in the case of two spouses living together civil union

partners , cohabitants whose cohabitation is registered under the

Cohabitation Act and cohabitants whose cohabitation is enrolled by

means of a public deed under the Cohabitation Act, 2020, an

adoption decree shall not be made authorizing more than one

applicant to adopt a person.

(4) An adoption decree may be made in respect of a person who

has already been the subject of an adoption decree under this Title;

and in relation to an application for an adoption decree in respect of

such a person, the adopter or adopters under the previous or last

previous adoption decree shall be deemed to be the parent or

parents of that person for all the purposes of this Title.

(5) In the case of a person who has attained the age of eighteen

years and who is to be adopted in accordance with article 115(2)(a),

no recommendation shall be required from the Adoption Board and

no social worker and, or children’s advocate shall be appointed.

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(1) When an application for an open adoption is made,

the Court shall refer the case to the Adoption Service within the

Directorate of Alternative Care (Children and Youth) who shall invite

all parties, including the Children’s Advocate, the person or entity

entrusted with the care and custody of the minor, where this is not

vested in the parents, the parents and the prospective adoptive parents

to draw up an agreement of open adoption.

(2)

The agreement of open adoption shall be presented to the

Court for approval by not later than thirty (30) working days from the

date when the case is referred to the Adoption Service within the

Directorate of Alternative Care (Children and Youth).

(3)

When no agreement is reached as referred to in sub-article

(2), the Adoption Service within the Directorate of Alternative Care

(Children and Youth) shall notify the Court by means of a note.

(4)

In the cases referred to in sub-article (3), the Court shall

refer the case to a family mediator, who shall invite all parties for a

meeting within ten (10) working days

Provided that all parties, including the person or entity

entrusted with the care and custody of the minor, where this is not

vested in the parents, the parents and the prospective adoptive parents

shall participate during such mediation to draw up an agreement of

open adoption

Provided further that the mediator may hear the minor,

where the minor has sufficient understanding, with the presumption

that the minor has sufficient understanding unless proof is brought to

the contrary

Provided further that where parties disagree on the

agreement of open adoption, the Court shall set a date to hear all

parties and shall decide upon the agreement of open adoption in its

final decree.

(5)

The open adoption agreement shall be presented to the

Court for approval by not later than thirty (30) working days from the

date when the case is referred to a family mediator by the Court.

(6) The Court may order that any changes are made to the open

adoption agreement, if it is in the best interest of the minor.

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(1) An adoption decree shall not be made unless the

a p p l i c a n t o r, i n t h e c a s e o f a j o i n t a p p l i c a t i o n , o n e o f t h e

applicants -

(a) has attained the age of twenty-eight years and is at

least twenty one years older but not more than fifty (50)

years older than the person to be adopted

Provided that if the applicant or applicants request the

court for authorisation to adopt siblings, the restriction

mentioned in this paragraph shall be deemed to be

satisfied if there is the required age difference at least

with regards to one of the children, and if the adoption

will be in the best interests of all the siblings involved;

or

(b) is the natural parent of the person to be adopted and

has attained majority; or

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(c) in favour of a foster carer who has fostered the person to

be adopted for at least the preceding five (5) years, or

three (3) years in extraordinary circumstances in

accordance with article 54 of the Minor Protection

(Alternative Care) Act.

(2)

An adoption decree shall not be made -

(a) in respect of a person who has attained the age of

eighteen years except

(i)

in favour of a sole applicant who is the natural

parent of the person to be adopted; or

(ii) in favour of the parent and the spouse, the civil

union partner or the cohabitant whose cohabitation

is registered under the Cohabitation Act, or the

cohabitant whose cohabitation is enrolled by

means of a public deed under the Cohabitation

2020. Act, 2020, if the person to be adopted has lived

with the said applicants for at least five (5)

consecutive years and consents to the adoption;

(iii) in favour of a foster carer who has fostered the

person to be adopted for at least the preceding five

(5) years, or three (3) years in extraordinary

circumstances in accordance with article 54 of the

Minor Protection (Alternative Care) Act, if the

person to be adopted consents to the adoption;

(b) in favour of a person who is in holy orders or bound by

solemn religious vows; or

(c) in favour of a tutor in respect of the person who is or

was under his tutorship, except after having rendered

an account of his administration or given adequate

guarantee of the rendering of such account.

(3) Subject to the provisions of article 117, an adoption decree

shall also not be made -

(a) in any case, other than the case of a person conceived

and born out of wedlock, except with the consent of

every person who is a parent of the person to be

adopted and is alive, even if the parent has not yet

attained eighteen years of age;

(b) in the case of a person conceived and born out of

wedlock, except with the consent of the person who

gave birth to the child if such person is alive, even if

she has not attained eighteen years of age as well as the

natural father, if he has acknowledged the person to be

adopted as his child;

(c) on the application of one of two spouses under the

provisions of sub-article (2) of article 114, except with

the consent of the other spouse;

(d) when the person to be adopted has attained the age of

eleven years, except with his consent and after having

been assisted by a children’s advocate.

(4) Subject to the provisions of article 117, before an adoption

decree is made the court shall -

(a) hear any person or any other entity who has been

entrusted with the care and custody of the child to be

adopted;

(b) Repealed by Act XXVIII.2024.5.

(c) where the person to be adopted is under tutorship or is

living with a person who is not his parent but who has

his care and custody in fact, hear the tutor or the

person who has such care and custody in fact, as the

case may be;

(d) hear the child’s advocate and, or social worker

appointed by the court to protect the best interests of

the child and to secure his representation.

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(1) Except where the applicant or one of the applicants is

a parent of the person to be adopted, an adoption decree shall not be

made unless the person to be adopted has been continuously in the

care and possession of the applicant for at least three consecutive

months immediately preceding the date of the adoption decree, not

counting any time before the date which appears to the court to be

the date on which the person to be adopted attained the age of eight

(8) weeks

Provided that, prior to the making of the adoption decree,

the applicant or applicants may request the court to grant temporary

care and custody of the child to be adopted

Provided further that in the case of intercountry adoptions

as defined in article 2 of the Adoption Administration Act, an

adoption made in accordance with the adoption procedures under

this Code and any regulations made thereunder and the Adoption

Administration Act, and certified by the competent authority of the

country of adoption as having been made lawfully in that country

may be recognised in Malta by means of an adoption decree

notwithstanding that the person to be adopted has not been

continuously in the care and possession of the applicant for at least

three consecutive months immediately preceding the date of the

adoption decree.

(2) During the three month period specified in sub-article (1),

the accredited agency responsible for the adoption placement shall

take any measures it deems expedient to ensure that the placement

with the applicant or applicants is in the best interests of the child

and if the placement is not deemed to be in the best interests of the

child, the accredited agency shall ask the Adoption Board to seek

authorisation from the court for the removal of the child from the

placement.

(3) Where an application for adoption is pending in any court,

any parent of the person to be adopted who has signified his

consent to the making of an adoption decree in pursuance of the

application and any tutor shall not be entitled, except with the leave

of the court, to remove the person to be adopted from the care and

possession of the applicant; and in considering whether to grant or

refuse such leave the court shall have regard to the welfare of the

person to be adopted.

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(1) The court may dispense with any consent or with any

hearing required by article 115 if it is satisfied -

(a) in the case of a dispensation with any such consent,

that

(i)

the person who is required to give his consent is

incapable of giving such consent; or

(ii) the parent cannot be found or has abandoned,

neglected or persistently ill-treated, or has

persistently either neglected or refused to

contribute to the maintenance of the person to be

adopted or had demanded or attempted to obtain

any payment or other reward for or in

consideration of the grant of the consent

required in connection with the adoption; or

(iii) either of the parents are unreasonably

withholding their consent; or

(iv) either of the parents may be deprived of parental

authority over the child to be adopted in

accordance with article 154(1); or

(v) the child to be adopted is not in the care and

custody of either of the parents and the Adoption

Board declares that there is no reasonable hope

that the child may be reunited with his mother

and, or father; or

(vi) the parent or parents have unjustifiably, not had

contact with the child to be adopted for at least

eighteen months; or

(vii)

it is in the best interests of the child to be

adopted for such consent to be dispensed with;

or

(b) in the case of a dispensation with any such hearing,

that the person who is required to be heard cannot be

found or is incapable of expressing his views; or

(c) that in view of special and exceptional reasons and

taking into account the interests of all persons

concerned, it is proper for it to dispense with any such

hearing and consent.

(2) The court may dispense with the consent of the spouse of an

applicant for an adoption decree if satisfied that the person whose

consent is to be dispensed with cannot be found or is incapable of

giving the consent, or that the spouses have separated and are living

apart and that the separation is likely to be permanent.

(3) The consent of any person in accordance with the

provisions of paragraph (a) of sub-article (3) of article 115 to the

making of an adoption decree in pursuance of an application may

be given (subject to conditions with respect to the religious

persuasion in which the person to be adopted is to be brought up)

without knowing the identity of the applicant for the decree.

(4) The Court may dispense with any consent or hearing

required for adoption following a request by a children’s advocate

on behalf of a child who has attained eleven years of age and who

would like to be adopted.

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(1) Where any parent or the person to be adopted does not

attend in the proceedings on an application for an adoption decree

for the purpose of giving his consent to the making of the decree,

then, subject to the provisions of sub-articles (2) and (3) of this

article, a document signifying his consent to the making of such a

decree and his understanding of the nature and effect of such a

decree shall, if the person in whose favour the decree is to be made

is named in the document or (where the identity of that person is

not known to the consenting party) is distinguished therein in the

prescribed manner, be sufficient evidence of that consent and of his

understanding the nature and effect of the decree, whether the

document is executed before or after the commencement of the

proceedings; and where any such document is attested as

mentioned in paragraph (b) of sub-article (2) of this article, it shall

be sufficient evidence as aforesaid without further proof of the

signature of the person by whom it is executed.

(2) A document signifying the consent of the both parents of a

person to be adopted shall not be sufficient evidence under this

article unless -

(a) the person to be adopted is at least eight (8) weeks old

on the date of the execution of the document; and

(b) the document is attested on that date by a

Commissioner for Oaths or an advocate or a notary or,

if executed outside Malta, by a person of any such

class as may be prescribed.

(3) A document signifying the consent of the person to be

adopted shall not be sufficient evidence under this article unless the

person in whose favour the decree is to be made is named in the

document.

(4) For the purposes of this article, a document purporting to be

attested as mentioned in paragraph (b) of sub-article (2) of this

article shall be deemed to be so attested, and to be executed and

attested on the date and at the place specified therein, unless the

contrary is proved.

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In all cases where the parents of a minor show their

intention that the minor is given up for adoption, with the aim that

such minor is eventually adopted, the Director (Child Protection) shall

be notified and a social contract in accordance with article 12 of the

Minor Protection (Alternative Care) Act shall be drawn up, which

care plan may include a temporary placement in alternative care for

the minor with the aim of allowing the parents to understand all the

legal effects that result from the adoption of the minor

Provided that where applicable, the Director (Child

Protection) shall investigate whether any members of the extended

family are willing to provide adequate care to the minor.

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(1)

The court before making an adoption decree shall be

satisfied -

(a) that every person whose consent is necessary for the

making of the adoption decree and whose consent is

not dispensed with, has consented to and understands

the nature and effect of the adoption decree for which

application is made; and in particular in the case of

any parent that he understands that the effect of the

adoption decree will be permanently to deprive him or

her of his or her rights in respect of the person to be

adopted;

(b) that the decree if made will be for the welfare of the

person to be adopted;

(c) that the applicant has not received or agreed to receive,

and that no person has made or given or agreed to

make or give to the applicant, any payment or other

reward in consideration of the adoption except such as

the court may sanction;

(d) that due consideration has been given to the

recommendations of the Adoption Board.

(2) In determining whether an adoption decree if made will be

for the welfare of the person to be adopted, the court shall have

regard (among other things) to the health of the applicant, as

evidenced, in such cases as may be prescribed, by the certificate of

a registered medical practitioner, and shall give due consideration

to the wishes of the person to be adopted, having regard to his age

and understanding and to the religious persuasion of such person

and of his parents.

(3) The court in an adoption decree may impose such terms and

conditions as the court may think fit, and in particular may require

the adopter to make for the person to be adopted such provision (if

any) as in the opinion of the court is just and expedient.

(4)

If it is in the minor’s best interest, the Court shall, when

making the adoption decree, authorise an agreement of open adoption

which has been drawn up by the parties together with the Adoption

Service within the Directorate of Alternative Care (Children and

Youth) or before a mediator, where the parents and, or the natural

family of the minor shall maintain contact with the minor

Provided that the Court shall ensure that the agreement of

open adoption was drawn up with the consent of all parties

Provided further that the Court shall take into consideration

the views of the minor if he possesses sufficient understanding

Provided further that an open adoption may include, but

shall not be limited to physical access, contact through electronic

means or any other form of correspondence

Provided further that every open adoption agreement shall

be drawn up with due consideration to the minor’s best interest

Provided further that open adoption shall give the right of

access between siblings, even when one of the siblings has been

adopted

Provided further that the minor shall give his consent when

he has attained the age of eleven (11) years

Provided further that any amendments to the agreement of

open adoption shall not have any effect before they are authorised by

the Court.

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(1) Upon an application for an adoption decree of a

person to be adopted, the court shall appoint such person as may be

prescribed to act as special curator of the person to be adopted with

the duty of safeguarding the interests of the person to be adopted

before the court.

(2) Following an application for an adoption decree of a minor,

the Court shall appoint a Children’s Advocate to ensure that the minor

is adequately represented and his best interests are safeguarded.

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Without prejudice to the functions of the Children’s

Advocate under any other law, the Children’s Advocate shall

(a)

hear the wishes and views of the minor;

(b)

submit the wishes and views of the minor to the

Court as relayed to him by the minor himself, or by other

professionals working with the minor;

(c)

give advice and explanation to the minor on the

ongoing proceedings and the effects that such proceedings may

have;

(d)

in cases of open adoption, hear the wishes and

views of the minor regarding the agreement of open adoption

and submit such wishes and views, either orally or in writing

during proceedings in accordance with article 114A.

Laws of Malta — Chapter 16 — CIVIL CODE

Upon an adoption decree being made -

(a) the person in respect of whom the adoption decree is

made shall be considered with regard to the rights and

obligations of relatives in relation to each other, as the

child of the adopter or adopters born to him, her or

them in lawful wedlock and as the child of no other

person or persons, relationship being traced through

the adopter or adopters;

(b) the relatives of the person in respect of whom the

adoption decree is made shall lose all rights and be

freed from all obligations with respect to such person;

(c) the tutor, if the person in respect of whom the adoption

decree is made is placed under tutorship, shall

terminate his administration and, within three months

from the date of the adoption decree, render an account

thereof to the adopter;

(d) the parents shall, in the case of an open adoption,

retain the right to maintain contact with the person in

respect of whom the adoption decree is made;

(e) the court shall inform the competent authorities that

the adoption decree has terminated the care order if an

adoption decree has been made in favour of a child

who is under a care order issued by virtue of the

Children and Young Persons (Care Orders) Act.

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Upon an adoption decree being made, a copy shall be

served upon the Central Authority

Provided that in case of local adoptions, a copy of the

adoption decree shall also be served upon the Directorate of

Alternative Care (Children and Youth).

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(1) Where an adoption decree is made, any judgement,

decree or order for the payment of maintenance in force with

respect to that person, and any agreement whereby the parent of

that person has undertaken to make payments specifically for his

benefit, shall cease to have effect, but without prejudice to the

recovery of any arrears which are due under the judgment, decree,

order or agreement at the date of the adoption decree.

(2) After an adoption decree has been made in respect of a

person who is conceived and born out of wedlock, no judgment,

decree or order for the payment of maintenance shall be made.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where, at any time after the making of an adoption

decree, the adopter or the adopted person or any other person dies

intestate in respect of any property, that property shall devolve in

all respects as if the adopted person were the child of the adopter

born in lawful wedlock and were not the child of any other person.

(2)

In any disposition of property made, whether by

instrument inter vivos or by will, after the date of an adoption

decree -

(a) any reference (whether express or implied) to the child

or children of the adopter shall, unless the contrary

intention appears, be construed as, or as including, a

reference to the adopted person;

(b) any reference (whether express or implied) to the child

or children of the adopted person’s natural parents or

either of them shall, unless the contrary intention

appears, be construed as not being, or as not including,

a reference to the adopted person; and

(c) any reference (whether express or implied) to a person

or persons related to the adopted person in any line or

degree shall, unless the contrary intention appears, be

construed as a reference to the person or persons who

would be related to him in that line or degree if he

were the child of the adopter born in lawful wedlock

and were not the child of any other person.

(3) For the purposes of the devolution of any property in

accordance with this article and for the purposes of the construction

of any disposition to which sub-article (2) applies, an adopted

person shall be deemed to be related to any other person being the

adopted child of the adopter as brother or sister.

(4) Where an adoption decree is made in respect of a person

who has been previously adopted, the previous adoption shall be

disregarded for the purposes of this article in relation to the

devolution of any property on the death of a person dying intestate

after the date of the subsequent adoption decree, and in relation to

any disposition of property made, or taking effect on the date of a

person dying, after that date.

Laws of Malta — Chapter 16 — CIVIL CODE

Upon an adoption decree being made, the person in respect

of whom the adoption decree is made shall assume the surname of

the adopter

Provided that where the adoption decree is made in favour

of two spouses, the person in respect of whom the adoption decree

is made shall assume the surname of any of the adoptive parents, or

the surname of both adoptive parents in the order of their choice

Provided further that when the adoption decree is made in favour of

two spouses who contracted marriage after the coming into force of

the Marriage Act and other Laws (Amendment) Act, 2017 * , then the

person in respect of whom the adoption decree is made shall assume

the Family Name of the spouses

Provided further that where the person to be adopted is a

child below the age of three years, the adopter may, with the

approval of the court, give such child a new name

Provided further that where the person to be adopted has

sufficient understanding, he may choose to retain his biological family

name and assume the surname of the adopter or adoptive parents, as

the case may be, in accordance with the provisions of this Code.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Every adoption decree shall contain a direction to the

Director of the Public Registry to make in the Adopted Persons

Register (established by article 269 of this Code) an entry in

accordance with Form H set out in Part II of the First Schedule to

this Code and (subject to the provisions of the next following sub-

article) shall specify the particulars to be entered under the

*The provisions of Act XXIII of 2017 came into force on the 1st of September,

2017. See Legal Notice 212 of 2017.

headings in columns 2 to 7 of that form.

(2)

For the purposes of compliance with the requirements of

the last foregoing sub-article -

(a) where the precise date of the birth of the person to be

adopted is not proved to the satisfaction of the court,

the court shall determine the probable date of his birth

and the date so determined shall be specified in the

decree as the date of his birth;

(b) where the country and place of birth of the person to

be adopted are not proved to the satisfaction of the

court, then, if it appears probable that that person was

born in Malta, he shall be treated as having been born

in Malta, and in any other case the particulars of the

country of birth may be omitted from the decree and

from the entry in the in the Adopted Persons Register;

(c) the term "sex" shall also include the term "gender" and

the court shall only include the term "sex" in the

decree,

and the surname to be specified in the decree as the surname of the

person to be adopted shall be the surname adopted in accordance

with the provisions of article 124.

(3) Where upon any application for an adoption decree there is

proved to the satisfaction of the court the identity of the person to

be adopted with a person to whom an entry in the register book of

acts of birth (established by article 238 of this Code) relates, any

adoption decree made in pursuance of the application shall contain

a direction to the Director of the Public Registry to cause the entry

in the register book of acts of birth to be marked with the word

"Adopted".

(4) Where an adoption decree is made in respect of a person

who has previously been the subject of an adoption decree under

this Title, the decree shall contain a direction to the Director of the

Public Registry to cause the entry in the Adopted Persons Register

to be marked with the word "Re-adopted".

(5) Upon an adoption decree being made, the Registrar of

Courts shall cause the decree to be communicated to the Director of

the Public Registry within fifteen days of the making of such

decree and the Director of the Public Registry shall, within fifteen

days of the receipt of such communication, cause compliance to be

made with the directions contained in the decree both in regard to

marking any entry in the register book of acts of birth with the

word "Adopted" and in regard to making the appropriate entry or

entries in the Adopted Persons Register, and shall on every such

decree write the date of receipt thereof and sign his name thereto.

(6) The provisions of sub-article (2) of article 238, sub-article

(1) of article 245, articles 248, 249, 252, 260, 261 and, subject to

the provisions of article 269, article 251 shall mutatis mutandis

apply to the Adopted Persons Register and entries therein, extracts

therefrom and certificates and other documents relating thereto or

connected therewith.

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(1) Where any person adopted by any one of the parents

alone has subsequently become a person presumed to have been

conceived or born in wedlock on the marriage of his parents, the

competent court may, on the application of any of the parties

concerned, revoke that decree.

(2)

Where an adoption decree is revoked under this article,

the Registrar of Courts shall cause the revocation to be

communicated to the Director of the Public Registry who shall

cause to be cancelled -

(a) the entry in the Adopted Persons Register relating to

the adopted person; and

(b) the marking with the word "Adopted" of any entry

relating to him in the register book of acts of birth,

and a certified copy of any such entry as is referred to in paragraph

(b) shall be deemed to be an accurate copy only if both the marking

and the cancellation are omitted therefrom.

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(1) The court by which an adoption decree has been made

may, on the application of the adopter or of the adopted person,

amend the decree by the correction of any error in the particulars

contained therein and may, if satisfied on the application of any

person concerned that a direction for the making of an entry in the

register book of acts of birth or the Adopted Persons Register

included in the decree in pursuance of sub-article (3) or sub-article

(4) of article 125 was wrongly so included, revoke that direction;

and where an adoption decree is so amended or a direction revoked,

the Registrar of Courts shall cause the amendment to be

communicated to the Director of the Public Registry within fifteen

days of the making of such decree; and any necessary correction of

or addition to the Adopted Persons Register or cancellation of the

marking of an entry in the register book of acts of birth or the

Adopted Persons Register shall be made accordingly.

(2) Where an adoption decree has been amended any certified

copy of the relevant entry in the Adopted Persons Register which

may be issued pursuant to article 269(5) shall be a copy of the entry

as amended, without the reproduction of any note or marking

relating to the amendment or of any matter cancelled pursuant

thereto; and a certified copy of an entry in any register, being an

entry the marking of which has been cancelled, shall be deemed to

be an accurate copy only if both the marking and the cancellation

are omitted therefrom.

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(1) An adopter or an adopted person who has attained

eighteen years of age may apply to the court for a copy of the

relevant adoption decree.

(1A) An adopter or an adopted person who has attained the age

of sixteen (16) years shall have the right to file a formal request to

the Central Authority to request details of the adopted person’s

natural family and, or of the adoption placement

Provided that such information should only be given in the

presence of a professional working in the social field, who possesses

the necessary skills.

(2) An adopted person who has attained eighteen years of age

shall have the right to apply to the court for authorisation to obtain

a copy of his original birth certificate from the Public Registry.

(3) Prior to giving an order related to sub-articles (1) and (2),

the court shall hear the applicant and any other person it deems fit

in the circumstances.

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(1) No person shall make or give or agree or offer to

make or give, or receive or agree to receive or attempt to obtain any

payment or other reward for or in consideration of -

(a) the adoption by that person of any person;

(b) the grant by that person of any consent required in

connection with the adoption of a person;

(c) the transfer by that person of the care and possession

of the person to be adopted with a view to his

adoption;

(d) the making by that person of any arrangements for the

adoption of a person.

(2) Any person who contravenes the provisions of sub-article

(1) of this article shall be guilty of an offence and shall, on

conviction, be liable to imprisonment for a term of not less than six

months but not exceeding one year or to a fine (multa) of not less

than one thousand and one hundred and sixty-four euro and sixty

nine cents (1,164.69) but not more than two thousand and three

hundred and twenty-nine euro and thirty seven cents (2,329.37) or

to both, and the court may order a minor in respect of whom the

offence was committed to be removed to a place of safety until he

can be restored to his parents or tutor or until other arrangements

can be made for him. The person convicted of an offence in terms

of this article shall also be liable to reimburse any amount which

was paid to him.

(3)

This article, insofar as it relates to the making of any

arrangements for the adoption of a person, does not apply to -

(a) payments made for the maintenance of that person;

and

(b) advocates’, notaries’, legal procurators’ or medical

practitioners’ remuneration for professional services.

(4) Any conviction under the provisions of sub-article (2) of

this article shall be notified by the registrar of the court making the

conviction to the competent court, and the latter court shall

thereupon take such measures as it considers expedient in the best

interests of the person adopted or to be adopted including, if it

deems fit, the revocation of the adoption decree.

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(1) No person shall, without the approval in writing of an

accred ited agency, pu blish o r cause to b e publi shed in any

newspaper, periodical or any other printed matter or by means of

broadcasting, television, public exhibition or by any other means or

medium, any advertisement, news item or other matter indicated,

whether or not in relation to a particular child, born or unborn, that

(a) a child may be adopted;

(b) a person intends to adopt a child; or

(c) a person intends or is willing to make arrangements

with a view to the adoption of a child.

(2) Unless authorised by the court, no person shall publish or

cause to be published in any newspaper, periodical, any other

printed matter or by means of broadcasting or television, public

exhibition or by any other means or medium, anything related to an

application for the adoption of a child or to adoption proceedings

including

(a) the name of the applicant or applicants;

(b) the name of the person who is or will be adopted;

(c) the name of any one of the parents, the curator or the

tutor of the child who is or will be adopted; or

(d) any matter likely to enable any of the persons

mentioned in paragraphs (a), (b) and (c) to be

identified.

(3) Any person who contravenes the provisions of this article

shall be guilty of an offence and shall, on conviction, be liable to

imprisonment for a term of not less than three months but not

exceeding six months or to a fine (multa) of not less than one

thousand and one hundred and sixty-four euro and sixty-nine cents

(1,164.69) but not more than two thousand and three hundred and

twenty-nine euro and thirty-seven cents (2,329.37) or to both.

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(1) Notwithstanding the provisions of any other law, any

person who knowingly makes a false statement, whether orally or

in writing, for the purposes of or in connection with an adoption,

shall be guilty of an offence and shall, on conviction, be liable to

imprisonment for a term of not less than three months but not

exceeding six months or to a fine (multa) of not less than five

hundred and eighty-two euro and thirty-four cents (582.34) but not

more than one thousand and one hundred and sixty-four euro and

sixty-nine cents (1,164.69), or to both.

(2) A person who knowingly gives false information in the

application for the entry of a person’s details in the Reunion and

Information Register shall be guilty of an offence and shall, on

conviction, be liable to a fine (multa) not exceeding five hundred

and eighty-two euro and thirty-four cents (582.34).

Laws of Malta — Chapter 16 — CIVIL CODE

Notwithstanding the provisions of any other law, a person

who impersonates or falsely represents himself to be an adopted

child, parent, adopter, relative, person whose consent to the

adoption of a child is required at law, or other person having an

interest in an adopted child, shall be guilty of an offence and shall,

on conviction, be liable to imprisonment for a term of not less than

three months but not exceeding six months or to a fine (multa) of

not less than five hundred and eighty-two euro and thirty-four cents

(582.34) but not more than one thousand and one hundred and

sixty-four euro and sixty-nine cents (1,164.69), or to both.

Laws of Malta — Chapter 16 — CIVIL CODE

If in any adoption proceedings a person files a document

purporting to indicate the consent to the adoption or the revocation

thereof, where the signature is forged or obtained by fraud or

duress, such person shall be guilty of an offence and shall, on

conviction, be liable to imprisonment for a term of not less than six

months but not exceeding one year or to a fine (multa) of not less

than one thousand and one hundred and sixty-four euro and sixty-

nine cents (1,164.69) but not more than two thousand and three

hundred and twenty-nine euro and thirty-seven cents (2,329.37), or

to both.

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A person who uses or threatens to use any force or

restraint or injures or threatens to injure, or causes or threatens to

cause anything to the detriment of a parent of a child with the

intention of

(a) inducing a parent to offer or refrain from offering the

child for adoption;

(b) influencing a parent on whether or not to consent to

the adoption,

shall be guilty of an offence and shall, on conviction, be liable to

imprisonment for a term of not less than three months but not

exceeding six months or to a fine (multa) of not less than one

thousand and one hundred and sixty-four euro and sixty-nine cents

(1,164.69) but not more than two thousand and three hundred and

twenty-nine euro and thirty-seven cents (2,329.37), or to both.

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A parent who consents to the adoption of his child and

proceeds to remove the child from the care and custody of the

prospective adopter or adopters without the authority of the court,

shall be guilty of an offence, and shall on conviction be liable to

imprisonment for a term of not less than two months but not

exceeding four months or to a fine (multa) of not less than five

hundred and eighty-two euro and thirty-four cents (582.34) but not

more than one thousand and one hundred and sixty-four euro and

sixty-nine cents (1,164.69), or to both.

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The Minister may make regulations-

(a) for prescribing anything which by this Title is

authorized or required to be prescribed;

(b) for the protection, supervision and control of minors

who are placed in the care and possession of such

persons as may be prescribed;

(c) for regulating the making of or participating in

arrangements for the adoption of a person or for the

placing of a minor in the care or possession of another

person;

(d) for any incidental and supplementary matter for which

the Minister thinks it expedient for the purposes of the

regulations to provide, including in particular the

entering and inspection of premises to which the

regulations relate by persons authorized in that behalf

by the Minister with a view to securing compliance

with the regulations;

(e) for establishing the penalties to which any offender of

any of the regulations may be liable.

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(1) Subject to sub-article (2), where an intercountry

adoption is to be treated as an adoption in accordance with the

provisions of article 113 the order (however called) of the authority

outside Malta whereby such adoption is effected shall have effect

as if it were an adoption decree made by the court in Malta; and the

provisions of this Code and of any other law shall apply

accordingly with such adaptations and variations as may be

appropriate in the circumstances.

(2) Sub-article (1) of this article shall apply subject to any

review, revocation or annulment by a competent court or other

authority of the order whereby the intercountry adoption was

effected and to any determination or order in relation thereto.

(3)

Without prejudice to the foregoing provisions of this

article, in respect of an intercountry adoption the court shall have -

(a) the power to determine whether such intercountry

adoption is to be treated as an adoption in accordance

with article 113;

(b) the power to direct the appropriate entry or marking

relating to the intercountry adoption to be made in the

registers and acts referred to in this Title and the

making of any rectification or cancellation thereof;

(c) the power to determine whether, and the extent to

which, a review, revocation or annulment of such an

adoption is to have effect in Malta;

(d) the power to order that an intercountry adoption shall

cease to have effect as an adoption or to be valid, in

Malta on the grounds that the adoption is contrary to

public policy or that the authority which purported to

authorize the adoption was not competent; and

(e) generally all such powers as it has in respect of an

adoption under this Code,

and may exercise such powers on an application for that purpose or

in the exercise of its powers under this article.

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Notwithstanding the foregoing provisions of this Title,

where an intercountry adoption is regulated by the provisions of an

international treaty to which Malta is a party, the Minister may

make regulations as he may deem appropriate for the

implementation of the provisions of such a treaty, and the powers

of the Court in respect of such an intercountry adoption shall be

exercised in accordance with and within the limits allowed by the

terms of the treaty and to ensure that the provisions of such treaty

are complied with.

Title IV

O F P ARENTAL A UTHORITY

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(1) A child shall be subject to the authority of his parents

for all effects as by law established.

(2) Saving those cases established by law, this authority is

exercised by the common accord of both parents. After the death of

one parent, it is exercised by the surviving parent.

(3) In case of disagreement between the parents on matters of

particular importance, either parent may apply to such court as may

be prescribed by or under any law in force from time to time

indicating those directions which he or she considers appropriate in

the circumstances.

(4) The court, after hearing the parents and the child if the

latter has reached the age of fourteen years, shall make those

suggestions which it deems best in the interest of the child and the

unity of the family. If the disagreement between the parents

persists, the court shall authorise the parent whom it considers

more suitable to protect the interest of the child in the particular

case, to decide upon the issue, saving the provisions of article 149.

(5) In the case of an imminent danger of serious prejudice to

the child either parent may take such measures which are urgent

and cannot be postponed.

(6) With regard to third parties in good faith, each of the

spouses shall be deemed to act with the consent of the other where

he or she performs an act relative to parental authority relative to

the person of the child.

Sub-title I

O F THE E FFECTS OF P ARENTAL A UTHORITY IN REGARD TO

M INORS

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(1) A child shall obey his parents in all that is permitted

by law.

(2) Saving any other provision of law respecting enlistment in

any disciplined force, it shall not be lawful for a child, without the

consent of the parents, to leave the parental house, or such house as

his parents may have appointed for him.

(3) Where the child leaves the house without such consent, the

parents shall have the right to recall him, and, if necessary, demand

the assistance of the Police.

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(1) Nevertheless, it shall be lawful for the competent

court as may be prescribed by or under any law in force from time

to time, for just cause, and without disclosing the same, to

authorize the child to leave the parental house.

(2) Where delay might be detrimental, it shall be lawful for any

magistrate to give the requisite order, making a report thereof, not

later than the following working day, to the said court, which may

confirm, revoke, or vary such order.

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(1) It shall be lawful for the parents, if they are unable to

control the child, to remove him from the family, assigning to him,

according to the means of the parents, such maintenance as is

strictly necessary.

(2) In any such case, the parents may also, where necessary and

upon obtaining the authority of such court as may be prescribed by

or under any law in force from time to time, place the child, for

such time as is stated in the decree, in some alternative form of

care, which the court will according to circumstances consider

suitable, to be, at the expense of the parents, cared for and treated

in such manner as the court may deem conducive to the discipline

and education of the child.

(3) The demand for such authority may be made even verbally;

and the court shall make the necessary order thereon without any

formal proceedings, and without giving its reasons therefor.

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The parents jointly represent their children, whether born

or to be born, in all civil matters.

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(1) The parents jointly administer the property of their

children, whether born or to be born, except such as has devolved

on such children on condition that it shall be administered solely by

one of the parents or by third parties.

(2) Acts of ordinary administration may however be performed

by either of the parents without the intervention of the other.

(3)

Acts of extraordinary administration which must be

performed by the parents jointly include -

(a) the alienation of movables by nature, including motor

vehicles for the object of profitably investing the

proceeds thereof;

(b) the collection of capitals that may become due;

(c) the granting of personal rights of enjoyment over

immovable property;

(d) the acceptance of an inheritance, legacy or donation in

the name of the child;

(e) the partition of movables by nature;

(f)

acts which require the authorisation of the court in

terms of sub-article (4) of this article.

(4)

The parents may not alienate immovables or movables by

operation of law belonging to the child nor may they contract loans

or other debt, on his behalf hypothecate or pledge his property,

enter into a suretyship, enter into any compromise, or submit a

dispute to arbitration except in case of necessity, or manifest utility

and with the authority of the court and in any such case the court

may, at the request of the parents, authorise one only of the parents

to represent the child on the relative deed.

(5) In case of disagreement between the parents the provisions

of article 131 shall apply.

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(1) Any inheritance devolving on the children, shall be

accepted by the parents with the benefit of inventory, unless such

inventory is dispensed with by the court.

(2) If one of the parents is unable or unwilling to accept such

inheritance, the inheritance may be accepted by the other parent

with the authority of the court. If both parents are unable or

unwilling to accept such inheritance the court may, upon the

demand of the child or of any of his relatives, authorise the

acceptance thereof either by the child himself, if he has attained the

age of fourteen years, or otherwise by a special curator to be

appointed by the court.

(3) Where the surviving spouse has filed the return in respect

of property comprised in a chargeable transmission in accordance

with the provisions of the Duty on Documents and Transfers Act,

such spouse shall be deemed, for the purposes of this article, to

have accepted the inheritance devolving upon the minor with the

benefit of inventory with respect to such property as shall have

been declared in the said return, which inventory shall be deemed

to have been duly drawn up and published according to the said

return, without the necessity of any further formality or

authorization required by any law.

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Where any act is performed in contravention of the

provisions of the foregoing articles, the nullity thereof may only be

set up by either parent or by the child or his heirs or other persons

claiming under him.

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In case of conflicting interests between the children, or

between the children and either parent, the competent court shall,

according to circumstances, appoint one or more special curators

Provided that it shall be lawful for either parent to decline to

represent any of the children against another or against the other

parent.

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(1) The parents are bound to render to the child, on the

latter attaining majority, an account of the property and the fruits of

those things of which they have not the usufruct; and of the

property only and of the administration thereof in regard to things

of which they have the legal usufruct.

(2) If parental authority ceases before the child attains majority

the parents shall render the account on the date of such cessation.

(3)

Without prejudice to any liability of the parent, either

parent may render such account on behalf also of the other parent.

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(1) The parents shall have the usufruct of such property

as devolves on the child by succession, donation, or any other

gratuitous title, including property derived from entail.

(2) They shall retain such usufruct until the child attains

majority, unless the latter dies before that time.

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The following property shall not be subject to the legal

usufruct

(a) property bequeathed or given to the child on condition

that the parents or either of them shall not have the

usufruct thereof

Provided that any such condition shall be inoperative

in regard to property reserved to the child by way of

reserved portion

Provided further that where the property is

bequeathed or given to the child on condition that only

one of the parents shall not have the usufruct thereof,

such property shall be subject to the usufruct of the

other parent, sohowever that in any such case, the

fruits of such property shall not be comprised in any

community of acquests subsisting between the parent

enjoying the usufruct and the parent excluded

therefrom;

(b) property given to the child to undertake a career, an art

or a profession;

(c) property devolved on the child by inheritance, legacy

or donation where such inheritance, legacy or donation

has been accepted in the interest of the child against

the wishes of the parents

Provided that where such property has been accepted

on behalf of the child by one parent against the wishes

of the other parent, such property shall be subject to

the usufruct of only that parent who made the

acceptance; sohowever that in any such case, the fruits

of such property shall not be comprised in any

community of acquests subsisting between the parent

accepting such inheritance, legacy or donation as

aforesaid, and the parent who has not so accepted;

(d) property which the child may have acquired by his

own work or his own separate industry.

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The usufruct vested in the parents shall be subject to the

following obligations

(a) all obligations to which usufructuaries are subject,

excepting that of giving security;

(b) the payment of any annuity or of any interest on

capital fallen due before the commencement of the

usufruct;

(c) the payment of the funeral expenses, and of those of

the last illness of the person from whom the property

has devolved on the child where, otherwise, such

expenses would have been borne by the child;

(d) the expenses for the maintenance and education of the

child.

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(1) The usufruct of the parents shall cease on the death of

the child or on the marriage or remarriage of the parents or the

adoptive parents, as the case may be.

(2) It shall also cease for any other reason for which parental

authority ceases.

(3) Where the usufruct ceases in respect only of one of the

parents, the fruit of the property subject to such usufruct shall not

be comprised in any community of acquests subsisting between the

parent in respect of whom the usufruct has not ceased, and the

parent in respect of whom it has so ceased.

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Where the usufruct ceases, and the parents, or either of

them, continue or continues to enjoy the property of the child living

with the parents or either of them without authority but without

opposition on the part of the child, or with authority but without the

express condition of rendering an account of the fruits, such parents

or parent or the heirs of such parents or parent as the case may be

shall only be bound to deliver the fruits existing at the time of the

demand, and shall not be bound to account for such fruits as may

have been consumed up to that time.

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(1) In the event of the death of one of the parents,

parental authority shall vest solely in the surviving parent in

respect of his or her children and their property, including property

devolving on the children from the property of the deceased parent

and from any other cause after the death of the predeceased parent.

(2) The provisions of sub-article (1) of this article shall also

apply where one of the parents has forfeited or been deprived of

p a r e n t a l a u t h o r i t y, o r c a n n o t , b e c a u s e o f a b s e n c e o r o t h e r

impediment, exercise the rights of parental authority.

(3) If either of the parents is deprived of the right of usufruct

only, such right shall vest in the other parent alone.

(4) Where one parent is deprived of the usufruct, the fruits of

such usufruct shall not be comprised in any community of acquests

subsisting between that parent and the parent who has not been so

deprived.

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(1) If a parent, on remarriage, continues to administer the

property of the children, whether or not such parent still exercises

the right of parental authority, the spouse of the parent shall be held

liable in solidum with such parent for the administration both

preceding and subsequent to the marriage.

(2) The provisions of this article shall apply to an adoptive

parent on marriage or remarriage.

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Notwithstanding any other provision of this Code, the

court may, upon good cause being shown, give such directions as

regards the person or the property of a minor as it may deem

appropriate in the best interests of the child.

Sub-title II

H OW P ARENTAL A UTHORITY C EASES

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Parental authority ceases ipso jure in each of the cases

following

(a) on the death of both parents or of the child;

(b) when the child attains the age of eighteen years;

(c) on the marriage of the child;

(d) if the child, with the consent of the parents, has left the

parental home and set up a separate domestic

establishment;

(e) if the parents fail to make, in favour of the child, the

registrations referred to in articles 2038 and 2039;

sohowever that where only one parent has failed to

make such registration, parental authority shall not

cease in relation to the parent who has not so failed;

(f)

if the surviving parent remarries or, in the case of an

adoptive parent, if after the adoption he marries or

remarries, without having first made an inventory of

the property of the child and obtained from the court

the requisite leave to continue in the exercise of the

rights of parental authority.

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In any of the cases referred to in paragraphs (e) and (f) of

the last preceding article, it shall be lawful for the court, if it deems

it expedient in the interest of the child, to reinstate the parent in the

parental authority wholly or in part upon his performing that by

reason of the omission of which he had forfeited such authority.

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The court may, on good cause, dispense with the inventory

required under paragraph (f) of article 150, and direct, instead, that

a mere description of the property be made, which shall be verified

on oath by the parent.

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Moreover, the court may, upon a demand made by the

parent, either before or after his remarriage or, in the case of an

adoptive parent, his marriage or remarriage for authority to

continue in the exercise of the rights of parental authority, grant to

the parent only such rights as refer to the person of the child, and

appoint a curator for the administration of the property or entrust

such administration to the parent and appoint a tutor in regard to

the person of the child.

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(1) Saving any other punishment to which he may be

liable according to law, a parent may be deprived, by the said court,

wholly or in part, of the rights of parental authority, in any of the

cases following

(a) if the parent, exceeding the bounds of reasonable

chastisement, ill-treats the child, or neglects his

education;

(b) if the conduct of the parent is such as to endanger the

education of the child;

(c) if the parent is interdicted, or under a disability as to

certain acts, as provided in articles 520 to 527

inclusive of the Code of Organization and Civil

Procedure, and articles 189 and 190 of this Code;

(d) if the parent mismanages the property of the child;

(e) if the parent fails to perform any of the obligations set

out in article 3B in favour of the child.

(2) If the interests of the child so require, the Court may order

that only one of the parents shall exercise the rights of parental

authority and the Court may also restrict the exercise of these rights

and, in serious cases, exclude both parents from the exercise of

these rights.

(3) The Court may also restrict the exercise of the

aforementioned rights where one or both of the parents are charged

with one or more of the offences listed in Title VII of Part II of

Book First of the Criminal Code.

(4) Nevertheless, the court may, even in the cases mentioned in

sub-article (1) of this article, reinstate the parent in the exercise of

the rights of which he has been deprived, when the cause of such

deprivation ceases to exist.

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The usufruct of the property of the child shall cease upon

the forfeiture of any of the rights of parental authority, and shall

only be re-acquired upon the full restoration of parental authority.

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(1) Where a minor, who has attained the age of sixteen

years, has been authorized under article 9 of the Commercial Code,

to trade, or, not being a trader, to perform certain acts of trade, such

minor shall, in regard to all matters relating to his trade, or in

regard to such acts, be considered as being of age.

(2) Nothing in this Code shall affect all other provisions of the

Commercial Code, relating to minors and to children subject to

parental authority.

Title V

O F M INORITY AND OF T UTORSHIP

Sub-title I

O F M INORITY

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A minor is a person of either sex who has not yet attained

the age of eighteen years.

Sub-title II

O F T UTORSHIP

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Any minor, whose parents have died or have forfeited

parental authority and who has not married, is subject to be placed

under tutorship until he becomes of age or until he marries.

§ I . O F THE A PPOINTMENT AND R EMOVAL OF T UTORS

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(1) A tutor is appointed by the court on the demand of

any person.

(2) In appointing a tutor the court shall take into account any

disposition contained in the will of either of the parents of the child

relating to the appointment of a tutor.

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Where among the relatives of the minor there are

competent persons, the court shall appoint one of such persons,

preference being given, subject always to the best interests of the

child, to the nearest relative by consanguinity.

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(1) It shall be lawful for the court to appoint more than

one tutor.

(2) Where more than one tutor have been appointed the court

may at any time, either of its own motion or upon the demand of

any of the tutors, specify their respective duties; and, until such

time as particular duties shall have been assigned to each of them,

each of the tutors shall have all the powers and duties of a tutor,

and they shall all be jointly and severally liable for the acts of each

of them.

(3) Where any of the tutors dies or otherwise ceases to be tutor,

the tutorship shall be exercised by the other tutor or tutors unless

the court, of its own motion or upon the demand of any person shall

have appointed another tutor in his stead.

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In case of conflicting interests between minors subject to

the same tutors, or between them and the tutors, the provisions of

article 139 shall apply.

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The following persons cannot be appointed tutors

(a) persons who have not attained majority;

(b) persons who are not vested with the free

administration of their property or who are notoriously

incompetent to administer property;

(c) persons who are or are about to be, or whose spouse or

relatives by consanguinity or affinity up to the degree

of uncle and nephew, are, or are about to be involved

in a lawsuit with the minor, in which the status of such

minor, or a considerable part of his property is at

stake;

(d) undischarged bankrupts;

(e) persons who have been sentenced to the punishment of

imprisonment for a term exceeding one year, or to any

punishment for an offence affecting the good order of

families, or for fraud;

(f)

persons who are of a notoriously bad character, or

manifestly untrustworthy or negligent;

(g) persons who are trustees of property for the benefit of

the minor.

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(1) The judges and the magistrates are not eligible for the

off i c e of t u t o r, ex c e p t i n t h e ca s e o f th e i r o w n r e l a t i v e by

consanguinity in any degree in the direct line, or up to the degree of

cousin in the collateral line.

(2) Tutorship already assumed in regard to persons other than

the aforesaid relatives shall cease on the appointment of the tutor to

the office of judge or magistrate.

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The following persons are entitled to be exempted from

accepting or continuing in the office of tutor

(a) members of the House of Representatives;

(b) heads of public departments, and any other public

officer having the direction of any particular branch of

the public service;

(c) persons belonging to the armed forces of Malta, if on

active service;

(d) persons who have attained the age of sixty years, or

are suffering from a habitual infirmity, which

incapacitates them from discharging the office of tutor

without serious inconvenience;

(e) any person who is a father or a mother of five living

children;

(f)

persons who are already discharging a tutorial office;

(g) any person not being a relative of the minor, or being a

distant relative, if there is in Malta a relative, or, as the

case may be, a nearer relative competent to discharge

the office of tutor, and not excused therefrom

Provided that where the incapacity or the ground of

exemption of the relative or nearer relative ceases, the

stranger or the distant relative, as the case may be,

may claim to be relieved of the office.

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It shall also be lawful for the court for any of the causes

mentioned in the last preceding article or for any other just cause,

to exempt, permanently or temporarily, any tutor from continuing

in his office.

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(1) The court shall, before appointing a person to the

office of tutor, direct such person to make an inventory of the

property of the minor or, according to circumstances, a description

of such property, verified on oath by such person, and to bind

himself with hypothecation of his own property limited to a fixed

sum, well and truly to administer the property of the minor, and to

render on the termination of the office a true and faithful account of

his administration.

(2) The court may order that the tutorial inventory or

description aforesaid be made by a person other than that who is to

be appointed to the office of tutor.

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(1) It shall be lawful for the court, when it deems it

expedient, in the decree of appointment, to impose on the tutor the

obligation of presenting in the registry of the court, yearly or at

such other intervals as the court shall direct, an account of his

administration.

(2) The court may also direct the person who offers to assume

the office of a tutor, to give security, and, in any such case, the

obligation of the surety as well as that of the tutor must precede the

appointment of the tutor.

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(1) The court may suspend or remove any tutor or curator

from his office on any of the grounds mentioned in paragraphs (b),

(c), (d), (e) and (f) of article 163, or for failure to render an account

in due time, or for unfaithfulness in the account rendered, or for

any other just cause, saving the provisions of article 35 of the Code

of Organization and Civil Procedure.

(2) In all cases the court shall chiefly consider the interest of

the minor.

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(1) If, at the time of the death of any one of the spouses

without issue, the surviving spouse declares that she is pregnant,

the court may, upon the demand of any person interested, appoint a

curator ad ventrem with a view to preventing any supposition of

birth, or substitution of child, and administering the property up to

the day of the birth, under such directions as the court may deem it

proper to give.

(2) It shall be lawful for the court to appoint a female as

curatrix, and entrust another person with the administration of the

property.

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The court may at any time grant to the tutor, or to the

curator mentioned in the last preceding article, a moderate

remuneration.

§ II . O F THE T UTOR’S A DMINISTRATION

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The tutor shall have the care of the person of the minor; he

shall represent him in all civil matters, and administer his property

as a bonus paterfamilias.

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The court shall, as appropriate, prescribe the place in

which the minor is to be brought up, the education which it is

p r o p e r t o g i v e h i m , an d t he e x p e n s e t o b e i n c u r r e d f o r h i s

maintenance and education.

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(1) Where the tutor has serious reasons for being

dissatisfied with the conduct of the minor, the provision of article

134 shall apply.

(2)

The necessary expenses shall be at the charge of the minor.

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(1) The minor shall obey the tutor in all that is permitted

by the law.

(2) Where the tutor abuses his authority, or neglects his duties,

the minor himself or any other person on his behalf, may make a

complaint to the competent court; and the court shall caution the

tutor or give any other expedient direction.

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The court may, even though the requirements laid down in

article 167 have not yet been complied with, authorize the person

entrusted with the making up of the inventory, or any other person,

to perform such acts as do not admit of delay.

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(1) The tutor shall, within the time of three months from

his appointment, sell all such movable property of the minor as the

court shall not have authorized him to keep.

(2) Unless otherwise authorized by the court the sale shall be

made by public auction.

(3) It shall be in the discretion of the court, according to

circumstances, to enlarge the time referred to in sub-article (1) of

this article.

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(1) The court may order any precious articles which the

tutor shall have been authorized to keep, to be deposited in the

place appointed for the judicial deposit of similar articles or in

some other place of safe custody.

(2) The same shall apply in regard to any moneys or securities

to bearer comprised in the estate of the minor.

(3) The court may, at any time, give other directions in regard

to such articles, moneys, or securities.

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(1) Any commercial or industrial establishment

comprised in the estate of the minor shall be sold and liquidated by

the tutor in the manner prescribed by the court.

(2) Nevertheless, the court may sanction the continuation of the

business if such continuation is likely to be of greater advantage to

the minor.

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(1) It shall not be lawful for the tutor, without the

authority of the court, to collect or transfer any capital belonging to

the minor, take money on loan except in case of urgency, accept or

renounce any inheritance, accept any donation or legacy subject to

a n y b u r d e n , r e f e r a n y m a t t e r t o a r b i t r a t i o n o r e ff e c t a n y

compromise, or alienate, hypothecate, or make any emphyteutical

grant of immovable property, or let out property for a time

exceeding eight years, in the case of rural property, or four years, in

the case of urban property, or the ordinary time according to usage,

in the case of movables.

(2) Upon a demand for authority to accept an inheritance, the

court may, according to circumstances, allow the tutor to produce

in lieu of the inventory prescribed in article 848, a note describing

the property comprised in the inheritance which shall be verified on

oath by the tutor.

(3) Where a lease has been granted for a longer time than that

stated in sub-article (1) of this article, it shall be reduced to the

time therein respectively stated, to be reckoned from the date of the

contract.

(4) The court may, in the decree appointing a tutor or by a

subsequent decree, grant such tutor a general authority in respect of

all, or any of the said acts.

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(1) The tutor shall, after deducting the expenses

necessary for the minor, profitably invest the income or other

moneys which he collects, when the amount thereof exceeds the

sum of one hundred and sixteen euro and forty-seven cents (116.47).

(2) If the tutor fails to make such investment, he shall be liable

in interest, unless he proves that notwithstanding all due diligence

he has not succeeded in securing a profitable and safe investment.

(3) The tutor shall be liable for any loss occasioned by his

failure to take, in making the investment, such precautions as a

bonus paterfamilias would have taken.

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(1) The tutor shall keep at least a book of receipts and

expenditure.

(2) He shall, with his accounts, produce vouchers for any

expense of a considerable amount.

(3) The said book, if verified on oath by the tutor, shall be

sufficient to prove small expenses.

(4) The tutor shall only be credited with such expenses as are

considered useful or, having regard to the position and the means of

the minor, customary.

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(1) Where the administration terminates for any other

cause than that referred to in article 158, the tutor shall render his

account to his successor in the office of tutor.

(2) If the minor dies during the tutorship, the account shall be

rendered to his heirs.

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If the tutorship terminates for any of the causes mentioned

in article 158 the account shall be rendered to the person who was

under such tutorship.

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(1) Any balance which may be due by the tutor shall bear

interest ipso jure as from the day of the termination of the

tutorship.

(2) The interest of any sum which may be due by the minor to

the tutor shall only commence to run from the day on which a

demand for payment shall have been made by the tutor, after the

termination of his office, by means of a judicial act.

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Subject to the provision of article 2157, all actions

competent to the minor against the tutor, or competent to the tutor

against the minor, relating to the tutorship, shall be barred by the

lapse of five years to be reckoned from the day on which the minor

attains his majority, or dies.

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(1) The nullity of any act performed in contravention of

the provisions contained in this Title, touching the interests of the

minor, may only be set up by the minor or his heirs or other persons

claiming under him.

(2) No act of the tutor may be impeached solely on the ground

that the appointment of the tutor was made against the provisions of

article 163.

Title VI

O F M AJORITY, GUARDIANSHIP, I NTERDICTION

AND I NCAPACITATION

Sub-title I

O F M AJORITY

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(1) Majority is fixed at the completion of the eighteenth

year of age.

(2) A major is capable of performing all the acts of civil life,

subject to the restrictions contained in other special provisions of

law.

Sub-title I A

O F GUARDIANSHIP

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(1) Notwithstanding the provisions of Sub-title II on

Interdiction and Incapacitation, a major who has a mental disorder

or other condition, which renders him incapable of taking care of

his own affairs may be subject to guardianship; and

notwithstanding the provisions of Sub-title II on Interdiction and

Incapacitation, to the extent possible, the parents of a person of

age, with disability, with a mental disorder and with another

condition, which makes such person incapable of taking care of his

or her affairs, shall first seek to place the person with disability

under guardianship before seeking the interdiction or incapacitation

of that person.

(2) The same shall apply in regard to a minor referred to in

article 156.

(3) The demand for the appointment of a guardian or of joint

guardians may be made by any person who voluntarily wishes to be

made subject to guardianship or by any person mentioned in article

189(3) of this Code or in article 521 of the Code of Organization

and Civil Procedure.

(4) If in any civil proceedings the Court considers that a party

may need to be subject to guardianship, the Court shall refer the

matter to the Guardianship Board established under Title IIIA of

Part II of Book Second of the Code of Organization and Civil

Procedure for its determination.

(5) For the purposes of this Sub-title unless the context

ot herwise requi res, the t erms "mental disorder" and "other

condition" shall have the same meaning as assigned to them in

article 189(4)

"disability" shall have the same meaning as assigned to it in the

Equal Opportunities (Persons with Disability) Act;

"mental disorder" shall have the same meaning as assigned to it

in the Mental Health Act

Provided that any reference in such definitions to

"disability of mind" or to "arrested or incomplete development of

mind" shall not be construed as a reference to a mental disorder for

the purposes of this Sub-title.

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A guardian shall

(a) be responsible to safeguard the personal and

proprietary well being of the person to whose

guardianship he is appointed;

(b) act instead of the person to whose guardianship he has

been appointed in matters of a personal or of a

proprietary nature during such time when the said

person is considered as not being capable of doing any

one or more acts of civil life as specified in the

Guardianship Order;

(c) to do any other thing for or on behalf of the person to

whose guardianship he is appointed as he may be

ordered or authorised to do by the Guardianship Board

established under Title IIIA of Part II of Book Second

of the Code of Organization and Civil Procedure or by

the Court of Voluntary Jurisdiction or as may be

prescribed by regulations made under this Sub-title.

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(1) The provisions of this Sub-title shall be construed and

interpreted and every function, power, authority, discretion, duty or

right conferred by this Sub-title or by any regulations made

thereunder shall be exercised in such manner that

(a) the will of the person subject to guardianship is

respected and given effect to the maximum extent

possible;

(b) the welfare of the person subject to guardianship is

promoted and fostered;

(c) the means used for the purpose of guardianship shall

be proportionate to the aims which they are intended to

achieve; and

(d) the freedom of choice and action of the person subject

to guardianship shall only be restricted when

necessary and only to an extent that is proportionate to

the aim pursued.

(2) In the exercise of his obligations the guardian shall act in

the best interests of the person subject to guardianship and shall

(a) take appropriate measures to provide the support that

the person subject to guardianship may require in

exercising his legal capacity himself insofar as this is

possible;

(b) consult with the person subject to guardianship and

take into account and respect the rights, will and

preferences of the person insofar as this is possible;

(c) encourage the person subject to guardianship to

participate as far as possible in the life of the

community;

(d) encourage and assist the person subject to

guardianship to become capable of caring for himself

and for his property and of making responsible

judgements in respect of matters relating to his person

and property;

(e) protect the person subject to guardianship from

neglect, abuse or exploitation; and

(f)

provide to the person subject to guardianship, as far as

possible, any assistive means as may be required for

the proper fulfilment of the obligations provided in

this sub-article.

(3) Subject to the limits imposed in the Guardianship Order or

by any other decision which the Guardianship Board may give from

time to time, a guardian may on behalf of a person subject to

guardianship sign and do all such things as are necessary to give

effect to any functions or obligations vested in the guardian.

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The Minister, in conjunction with the Minister

responsible for Social Policy and the Minister responsible for

Health may make regulations for the better implementation of the

provisions of this Sub-title.

Sub-title II

O F I NTERDICTION AND I NCAPACITATION

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(1) A major who is a person with a mental disorder or other

condition, which renders him incapable of managing his own affairs, or

who is insane or prodigal, may be interdicted or incapacitated from

doing certain acts, as provided in articles 520 to 527 inclusive, of

the Code of Organization and Civil Procedure.

(2) The same shall apply in regard to the minor referred to in

article 156.

(3)

The demand for interdiction or incapacitation may be made

not only by the persons mentioned in article 521 of the Code of

Organization and Civil Procedure, but also by any person related by

affinity who, under the provisions of this Code, might be compelled

to supply maintenance to the person who has a mental disorder or

other condition, which renders him incapable of managing his own

affairs, or is insane or prodigal.

(4) For the purposes of this Title, and for the purposes of the

provisions of articles 597, 752, 1034, 1035 and 1036

(a) "other condition", where used in the context of a

condition that renders a person incapable of managing

his own affairs, means a long-term physical, mental,

intellectual or sensory impairment which in interaction

with various barriers may hinder one’s full and

effective participation in society on an equal basis with

others; and

(b) "mental disorder" shall have the meaning assigned to it

in the Mental Health Act

Provided that any reference in such definitions to

"disability of mind" or "arrested or incomplete development of

mind" shall not be construed to mean a mental disorder for the

purposes of this Title and such provisions.

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(Deleted by Act II.2012.14).

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(1) A minor under tutorship may be placed under the

guardianship or interdicted or incapacitated in the last year of his

minority, and in any such case the Guardianship Board or the

Court, as the case may be, may appoint as guardian or curator either

the tutor or any other person.

(2) The said guardian or curator shall only commence to

administer the property as from the day of the termination of the

tutorship.

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The nullity of the acts performed by the person interdicted

or incapacitated after the interdiction or incapacitation may only be

set up by the curator, or by the person interdicted or incapacitated

or his heirs or other persons claiming under him.

Title VII

O F A BSENTEES

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A person who has ceased to appear in Malta and has not

been heard of shall, for the purposes of the provisions contained in

this Title, be deemed to be an absentee.

Sub-title I

O F THE C URATORSHIP OF A BSENTEES

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The presumptive heirs of an absentee, or any other person

interested, may apply to the competent court in the island in which

the absentee last resided, for the appointment of a curator to

manage the property of such absentee, and for any other requisite

directions for the preservation of his property.

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Upon any such application, the court shall direct that an

edict, drawn up according to Form A in Part II of the First Schedule

to this Code, be twice, with an interval of at least one month,

published in the Government Gazette, and posted up at the entrance

of the building in which the court sits, and in any other place which

the court may deem proper, calling upon any person having

information respecting the absentee to communicate such

information to the court, through the registrar.

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(1) Any information respecting the absentee may be

given either in writing, in any form, or orally.

(2) Where the information is given orally, the registrar shall

make a note thereof at the foot or in the margin of the application,

or, if this is not practicable, on a separate sheet of paper to be kept

with the application.

(3) Any communication which is anonymous, or made by a

person unknown and without an indication of the place in which

such person may be found, will not be considered.

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If, on the expiration of the time fixed in the second

publication of the edict, no information shall have reached the court

respecting the existence of the absentee, or the place where he may

be found, the court shall appoint a person to make up, within such

time as the court shall fix, an inventory of the property of the

absentee, or, according to circumstances, a description of such

property to be verified on oath by such person

Provided that if the court shall have had information warranting

further enquiries, it shall be lawful for the court, before making any

such appointment, to direct such further enquiries to be made.

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The court may, at any time, after the application referred

to in article 194, authorize any competent person to perform, on

behalf of the absentee, such acts as do not admit of delay.

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(1) Upon the completion of the inventory or description,

the court shall, before allowing the application, direct the curator

designate to bind himself with hypothecation of his own property

limited to a fixed sum, well and truly to administer the property of

the absentee, and to render, on the termination of the curatorship, a

true and faithful account of his administration.

(2) Where the court deems it expedient that the curator

designate should give security, the obligation of the surety shall

also precede the appointment of the curator.

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(1) The persons who according to the provisions of

article 163 are not competent for the office of tutor, shall not be

competent for the office of curator.

(2)

No person is bound to accept the curatorship of an absentee.

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(1) It shall be in the discretion of the court to appoint two

or more curators.

(2) In any such case the provisions of sub-articles (2) and (3) of

article 161 shall apply.

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(1) The curator shall render an account of his

administration to the absentee, if he returns, or if he appoints an

attorney, or to such persons as are vested with the possession of his

property.

(2) The provisions, however, of sub-article (1) of article 168

shall also apply to the said curator.

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(1) The curator shall represent the absentee in civil acts

and shall manage his property as a bonus paterfamilias.

(2) He is bound to prosecute the enquiries about the existence

of the absentee or the place in which he may be found, and to

communicate to the court any information which he may receive.

(3) Unless otherwise provided in the decree appointing the

curator or in any other decree, the provisions of articles 169 and

177 to 182 inclusive shall also apply to such curator.

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(1) Where the absentee has left an attorney for the

management of his property, the court shall, during the time the

power of attorney is in force, give directions only with regard to

such acts as the attorney may not perform under the power of

attorney or in virtue of the law.

(2) When the power of attorney expires, the foregoing

provisions of this sub-title shall apply.

Sub-title II

O F THE P ROVISIONAL P OSSESSION OF THE P ROPERTY OF AN

A BSENTEE

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After the lapse of three continuous years from the day the

absentee was last heard of, or of six years, if the absentee has left

an attorney to manage his property, the competent court in the

island where the absentee last resided, may, upon the application of

any person interested, order the opening of any secret will, or

declare, notwithstanding the provisions of article 68 of the Notarial

Profession and Notarial Archives Act, accessible any public will,

which the absentee may have made.

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(1) Upon any such application, the court shall hear the

attorney or curator, if any, and, if it is of opinion that the order

sought for should be given, shall direct that an edict similar to that

referred to in article 195 be published in the Government Gazette,

and posted up at the entrance of the building where the court sits,

and in any other place which it may deem proper.

(2) The provisions of article 196 relating to any information

which may be given in regard to the absentee, shall apply also in

the case referred to in this article.

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After the lapse of six months from the publication of the

edict, the court, in default of any information respecting the

absentee, shall, by a decree, order the opening of any secret will,

or, as the case may be, declare accessible any public will which the

absentee may have made.

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The testamentary heirs of the absentee or their heirs, or

where the will does not contain any institution of heir, such persons

as would have been the heirs-at-law of the absentee, if he had died

on the day he was last heard of, or their heirs, may make a demand

to the competent court in the island in which the absentee last

resided, that they be vested with the provisional possession of the

property.

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(1) Where there is no secret or public will, the demand

referred to in the last preceding article, may be made immediately

upon the expiration of the times respectively established in article

205. (2) Upon such demand the court shall hear the attorney or

curator, if any, and, if expedient, shall issue an edict similar to that

referred to in article 206, causing it to be posted up as provided in

that article; and it shall give the requisite decree on that demand

after the lapse of six months from the publication of the edict.

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The edict prescribed in articles 206 and 209 shall be

published and posted up twice, with an interval of at least one

month, unless, before any of the demands mentioned in those

articles, a curator shall have been appointed; and in any such case

the time of six months which is to elapse before the court’s decree

shall run from the second publication of the edict.

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When the demand by the heirs to be vested with the

provisional possession of the property, has become competent, even

though no such demand shall have been made by them, the

legatees, donees, and all other persons having rights on the

property of the absentee depending on his death, may, by sworn

application against the testamentary heirs or the heirs-at-law, as the

case may be, and the attorney or curator, if any, demand to be

allowed to exercise such rights provisionally.

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The heirs, and the persons mentioned in the last preceding

article, shall be placed in the provisional possession of the

property, or allowed to exercise their eventual rights, only on

condition of giving security in an amount to be fixed by the court,

in terms of article 352.

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Where any of the presumptive heirs or other persons

having rights on the property of the absentee is unable to give the

said security, it shall be in the discretion of the court to order such

other caution as it may deem proper in the interest of the absentee,

having regard to the condition of the applicants, to their

relationship with the absentee, and to other circumstances.

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The spouse of the absentee, in addition to what is due to

him or her in virtue of the marriage contract, or by succession or by

any other title according to law, may, in case of need, demand an

allowance for maintenance, to be fixed according to the condition

of the family and the amount of the estate of the absentee.

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The persons vested with the provisional possession of the

property of the absentee, and their successors, shall have the

administration of such property, the right to sue or defend in

matters touching the rights of the absentee, and the enjoyment of

the fruits of the property, subject to the restrictions hereinafter

prescribed.

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(1) The persons vested with the provisional possession of

the property of the absentee shall take the necessary steps, before

the competent court, to make up, within three months from the day

on which they have been vested with such possession, an inventory

of the movable property and a description of the immovable

property of the absentee, unless dispensed therefrom by the court

on the ground that such inventory or description had already been

made under the provisions of article 197, or for any other good

cause.

(2) The court may, if necessary, direct the said inventory or

description to be made before granting the demand for provisional

possession.

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(1) The persons vested with the provisional possession of

the property of the absentee may not, without the authority of the

court, alienate or hypothecate the immovable property or perform

any act other than of ordinary administration.

(2) The court shall, where necessary, order the sale of all or

part of the movable property; and in any such case the proceeds

shall be invested at interest, or in any other manner which the court

shall deem proper.

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(1) Where the persons vested with the provisional

possession of the property, or allowed to exercise their rights

provisionally under article 211, are ascendants, descendants, or the

spouse of the absentee, they shall retain all the fruits for their own

benefit.

(2) Where the said persons are relations of the absentee in any

other degree, or strangers, they shall be bound to reserve one-third

part of the fruits

Provided that after the lapse of ten continuous years from the day

the absentee was last heard of or of six years from the entry of

provisional possession, the whole of the fruits shall belong to the

said persons.

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(1) If, during the period of provisional possession, any

person shall prove that, at the time of the grant of such possession,

he had a prior or equal right to that of the possessor, it shall be

law f ul f or such p erson to ex cl ud e t he p osses sor from such

possession, or to cause himself to be associated therein.

(2) The said person, however, shall only be entitled to such

fruits as will accrue from the day of the judicial demand.

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(1) If the absentee reappears, or if his existence is

established, the effects of the provisional possession, or of the

authority to exercise the right mentioned in article 211, shall cease,

and the court shall give the necessary directions for the

preservation and administration of his property.

(2) The possessors of the property, and such persons as may

have obtained any payment by reason of the exercise of any right

depending upon the death of the absentee, shall be bound to restore

the same together with the fruits, as provided in sub-article (2) of

article 218.

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If, during the period of provisional possession, the time of

the death of the absentee is established, his succession shall

become open in favour of such persons as at that time were his

testamentary heirs or heirs-at-law, or of their successors; and the

persons who have had the enjoyment of the property, shall be

bound to restore it, together with the fruits, as provided in sub-

article (2) of article 218.

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After the grant of provisional possession, any person

having any claim against the absentee shall bring forward such

claim against the persons vested with the possession of the

property.

Sub-title III

O F THE A BSOLUTE P OSSESSION OF THE P ROPERTY OF AN

A BSENTEE

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If the absence has continued for a period of six years since

provisional possession has been granted, or if an application made

by the testamentary heirs or the heirs-at-law of the absentee before

the court of voluntary jurisdiction of the island in which the

absentee last resided against curators appointed by the said court

such absence has been declared by a decree to have subsisted for a

period of ten continuous years from the day the absentee was last

heard of, the court of voluntary jurisdiction shall, upon the demand

of the parties interested, awa rd a decree, granting absolute

possession of the property and the absolute exercise of the rights

de pe nd i ng up o n t he d e a th of th e a b s e nt e e , d i s c h a rg in g t h e

securities and directing any other caution which may have been

imposed if any, to cease

Provided that if the absent person is a minor, the period of

absence established under this article shall run from the day such

person would have attained majority.

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The provisions of the last preceding article, or, as the

case may be, the declaration of the opening of the succession may

also take place, even though no curator shall have been appointed,

nor provisional possession granted as provided in the preceding

two sub-titles, in each of the following cases

(a) if one hundred years since the birth of the absentee,

and at least one year since the last news of him, shall

have elapsed;

(b) if eighty years since the birth of the absentee, and at

least six years since the last news of him, shall have

elapsed.

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It shall be lawful for the persons placed in absolute

possession of the property or allowed the absolute exercise of the

rights depending upon the death of the absentee, to proceed to final

partitions of the property, and to dispose freely thereof.

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If the absentee returns, or his existence is established, he

shall recover his property in the state in which it may be, and shall

be entitled to the price of such property as has been disposed of, if

such price is still due, or to the property in which such price may

have been invested.

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The children or descendants of the absentee may, likewise,

within the time prescribed in article 845, to be reckoned from the

g r a n t o f ab s ol u t e po s s e s s i o n o r f r o m t h e da y o n w h ic h t he

declaration of the opening of the succession may have been

obtained, enforce their rights on the property of the absentee

according to the rules laid down in the last preceding article,

without being bound to prove his death.

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If after the grant of absolute possession, the time of the

death of the absentee is established, such persons as, at that time,

were his heirs or legatees, or were vested with any right in

consequence of the death, or their successors, may bring the actions

competent to them, saving the rights which the possessors may

have acquired by prescription, and the effects of good faith in

regard to the fruits already collected.

Sub-title IV

O F THE E FFECTS OF A BSENCE IN REGARD TO EVENTUAL

R IGHTS OF THE A BSENTEE

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No person may claim any right on behalf of any other

person who is not known to be living, unless he proves that such

other person was alive at the time when such right originated.

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(1) Upon the opening of a succession to which a person

who is not known to be living is entitled, wholly or in part, such

succession shall devolve upon those with whom such person would

have a right to compete, or upon those who would have taken it in

his default, saving the right of representation.

(2) Those upon whom, in default of such person, the

succession devolves, shall proceed to make up an inventory, or, if

the court deems it more expedient, a description of the property.

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The provisions of the last two preceding articles shall

apply, without prejudice to the right to maintain an action to obtain

an inheritance, or to the other rights competent to the absentee, or

his representatives, or other persons claiming under him. Such

rights shall only be extinguished by the lapse of the time required

for prescription.

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So long as the absentee does not appear, or no actions

competent to him are brought in his behalf, those upon whom the

succession has devolved shall not be bound to return such fruits as

may have been collected by them in good faith.

Sub-title V

O F THE C URATORSHIP OF M INOR C HILDREN OF A BSENTEE

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(1) Where any of the children of the absentee are minors,

and are not subject to parental authority, it shall be lawful for the

court, upon the demand of any person, to appoint to such children

one or more curators.

(2) The provisions relating to the tutorship of a minor whose

parents are dead shall, in so far as applicable, apply to the

curatorship of a minor ordered under this article.

Title VIII

O F A CTS OF C IVIL S TATUS

Sub-title I

G ENERAL P ROVISIONS

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(1) Upon the birth, marriage or death of any person, an

act in the respective form annexed hereto, containing such

particulars as are required under this Title, shall be drawn up in

clear and legible characters, and without any abbreviation.

(2) Where any of the said particulars cannot be known, a

statement to that effect shall be entered in the proper place in the

act.

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The provisions of the last preceding article shall not apply

in the case of the death of any person belonging to, and actually

serving in, any of the armed forces of a foreign country, unless such

person was a citizen of Malta or was married to any person who is a

citizen of Malta.

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Acts of birth or death shall be drawn up by the officers

appointed by the Minister responsible for the Public Registry in that

behalf.

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Acts of marriage shall be drawn up and signed as provided

in article 293.

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(1) In the Public Registry Office in Malta and in Gozo,

there shall be kept five register books: one for the registration of

acts of birth, one for the registration of acts of marriage, another for

the registration of civil unions , another for the registration of acts of

death, and the fifth for the registration of the deeds of cohabitation.

(2) Each volume of such registers shall be numbered from the

first to the last page. The last page of each volume shall contain a

statement as to the total number of its pages; such statement shall

be signed by the Director of the Public Registry.

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(1) In the Public Registry Office in Malta, there shall be

registered all acts of birth, marriage and death which shall have

taken place in the island of Malta, as well as the acts mentioned in

articles 244 and 285; and in the Public Registry Office in Gozo,

there shall be registered all acts of birth, marriage and death which

shall have taken place in the islands of Gozo and Comino.

(2) A copy of an act, registered as provided in sub-article (1) and

transmitted to the Director by any electronic means, or any true copy

thereof, shall be deemed a true and authentic copy for all purposes of

law provided this copy is signed by the Director receiving it.

(3) For the purposes of this article the Director’s signature may

also be an electronic signature according to the meaning as is assigned

to it as defined in Regulation (EU) No. 910/2014 of the European

Parliament and of the Council of 23 July 2014 on electronic

identification and trust services for electronic transactions in the

internal market,

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(1) On every act delivered to him for registration, the

Director of the Public Registry shall write a progressive number

and the date of delivery, and shall sign his name thereto.

(2)

An act shall be deemed to have been received by the

Director, when he shall have signed his name thereto.

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Each description of acts shall have a distinct numbering,

beginning from the first and ending with the last act received

during each year.

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(1) The Director shall not receive any act which is not

written in clear and legible characters, or which contains

abbreviations, or which may ap pear to him to be otherwise

defective or irregular.

(2) In any such case, the act shall be presented by the Director

to the retired Judge or retired Magistrate or retired advocate of the

Court of Revision of Notarial Acts, who, after hearing, if necessary,

the person by whom the act shall have been made, shall determine

the manner in which, according to law, the act is to be drawn up.

(3) The Director may not refuse to receive any act which is

countersigned by the said retired Judge or retired Magistrate or retired

advocate.

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(1) The provisions of the last preceding article shall

apply to any certificate of baptism, delivered to the Director under

the provisions of articles 273 and 285.

(2) No certificate of baptism shall be received unless it is

written in the Maltese, English or Latin language.

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(1) Any act of birth, marriage, union of equivalent status

as defined in the Civil Unions Act or death of a citizen of Malta

drawn up or registered in a foreign country by a competent

authority in that country, other than an act drawn up or registered

under sub-article (l) or sub-article (2) of article 270, may, at the

request of any person interested and upon the Director of the Public

Registry being satisfied on the authenticity of such act, be

registered in these Islands in the same manner as if it were an act

drawn up by any of the persons mentioned in this Title.

(2) The person making the request shall, for the purposes of

registration, deliver to the Director the act in respect of which such

request is made.

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(1) The acts shall be recorded in the respective register

books, consecutively in the order in which they are received, and

without any blanks.

(2) The registrations shall, as far as practicable, be made in

accordance with the forms annexed to this Code relating to the

drawing up of the acts, even where the documents which in the

cases provided for in this Title may be delivered in lieu of such acts

are drawn up in a different manner.

(3) The registration shall also include the date of the receipt of

the act and the transcription of the signature of the Director.

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(1) The Director shall, on the last page of each register

book, make a declaration to the effect that the registrations therein

contained are true copies of the original acts to which they refer.

(2) Such declaration shall be made on each register book within

one month from the receipt of the last act entered in such register

book.

(3) The Director shall write down the date and sign his name

immediately after such declaration and after any note which he

shall enter in the register book under the provisions of this Title.

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The Director shall register every act within thirty working

days from its receipt

Provided that this article shall not apply in the cases

mentioned under article 285A.

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Where before signing the declaration referred to in article

246, or any note, it shall be necessary to correct any error, the

Di rector shall m ake the correctio n in the m an ner and form

following - in the case of a registration, by means of a postil at the

foot thereof to be signed by him, and, in the case of a note, by

means of a postil at the foot thereof before it is signed; and

necessary cancellation shall be made so that the words cancelled

remain clearly legible; it shall not be lawful to make any erasure.

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Every act or document received shall, even after it is

registered, be preserved.

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(1) In the Public Registry Office in Malta and in Gozo

there shall be made, within the first three months of each year, an

alphabetical index of the registrations entered during the preceding

year.

(2) The Director of the Public Registry Office in Gozo shall,

within one month from the last day of the time mentioned in sub-

article (1) of this article, transmit to the Director of the Public

Registry Office in Malta a copy of the index of each year.

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(1) The register books, acts and documents referred to in

the foregoing articles, shall be open to inspection by every person,

and extracts therefrom, signed, manually or electronically signed as

defined in Regulation (EU) No. 910/2014 of the European Parliament

and of the Council of 23 July 2014 on electronic identification and

trust services for electronic transactions in the internal market, by the

Director of the Public Registry of Malta or the Director of the

Public Registry of Gozo, shall be given upon the demand of any

person.

(2) In this Title the word "extract" means a certificate

containing an abridged copy of one or more registered acts in

accordance with Forms I, J, K, KK, L, O and P set out in Part II of

the First Schedule to this Code. All corrections and annotations

entered in the margin of the registers shall be incorporated in the

extract with the exception of annotations of adoptions which shall

be transcribed at the back of the extract.

(2A) (a) Extracts of acts of birth and of entries in the Adopted

Persons Register shall be issued in the Forms I or J

shown in Part II of the First Schedule to this Code.

(b) For the purpose of the extracts issued in terms of

paragraph (a) hereof entries in the Adopted Persons

Register shall be given consecutive numbers which

follow the last number of the acts of birth registered in

the year of birth of the adopted person, or one of such

numbers reserved for the purpose by the Director and

relative to the year of birth of the adopted person,

which numbers shall not be allotted to acts of birth.

The said year shall also be indicated.

(c) The fact that certain numbers have, according to

paragraph (b) of this sub-article, been reserved for

registration of adopted persons, shall be kept secret and

confidential. A list of such numbers shall only be given

to the department of Government dealing with

n a t i o n a l i t y, t h e P a s s p o r t O f f i c e , t h e E l e c t o r a l

Commission and the Marriage Registrar who shall be

bound by the same secrecy and confidentiality.

(3) The Directors mentioned in sub-article (1) shall also, if

required, give a certificate containing a true copy in full of one or

more registered acts, as well as a certificate attesting the non-

ex istence of any registratio n if u pon a search for an y su ch

registration or act, such registration or act is not found

Provided that the words "illegitimate father" wherever they

occur in an act of civil status registered before the 1st March, 2005

shall not be reproduced in any copy or extract of such act issued by

the Directors mentioned in sub-article (1), except as may be

otherwise explicitly ordered or authorised by a Court

Provided further that in an extract of any act of birth -

(a) the term ''single'', as relating to the status of the

mother, shall not be stated;

(b) when a child is born more than three hundred days

from the legal separation, divorce or annulment of the

marriage of the mother no reference shall be made to

such legal separation, divorce or annulment of

marriage;

(c) where the child is born in wedlock, an indication of the

marriage contracted between the spouses shall be stated

in the act of birth next to the name and surname of the

parents by using the words "spouse of the said";

(d) when a child is born less than three hundred days from

the legal separation, divorce or annulment of the

marriage of the mother any reference to that fact shall

not be entered.

(4) * The Director of the Public Registry shall give to any person

applying for the same, a certificate, the contents of which shall be

*this sub-article is not yet in force.

prescribed, reflecting all the acts of civil status entered in the Public

Registry against any individual registered therein.

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(1) The registers and any extracts thereof as well as the

certificates signed by the Director, manually or electronically

signed as defined in Regulation (EU) No. 910/2014 of the European

Parliament and of the Council of 23 July 2014 on electronic

identification and trust services for electronic transactions in the

internal market, shall, until the contrary is proved, be evidence of

their contents.

(2) No further proof of their authenticity shall be required

beyond that which they bear on the face of them.

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(1) It shall be lawful for any person to bring an action for

the correction or cancellation of any registration, or for the

registration of any act which the Director, with the approval of the

retired Judge or retired Magistrate or retired advocate of the Court of

Revision of Notarial Acts, shall have refused to receive.

(2) It shall be lawful for any person to bring an action for the

registration of the name or names, which name or names the person

shall have used or shall have been used for him by his family, and

which shall be declared by the court as being the name or names by

which the person has been consistently called, or an entry in the

Adoption Persons Register as the name or names given to the child

and the name or names by which the child is to be called

Provided that the judicial demand mentioned in this sub-article

shall not be allowed when the name or names that the person shall

have used or shall have been used for him by his family, are only a

shortened version or an abbreviation of the name or names appearing

on the relative act of birth.

(2A) Where, in the circumstances mentioned in the provisions of

sub-article (2), the name or names that the person shall have used or

shall have been used for him by his family are not necessarily a

different name or names but a translated version in another European

language of the same name or names that are registered in the act of

birth, and the use of that translated name or names result from another

act of civil status of such person or from a Maltese legally valid

identification document or passport that has been issued to him before

the 31 December 2011, the Director of Public Registry, upon a written

request which has to be sustained by a sworn declaration made by the

person concerned, may after he is satisfied with the correctness and

veracity of such request and sworn declaration, proceed by inserting an

annotation that reflects such change of name or names in the acts of

civil status that concerns such person.

(3) The action mentioned in sub-article (2) shall include a

request that the change effected in the act of birth through the

registration mentioned in this sub-article be reflected in every act

of civil status relative to the same person and, where any, to the

children and further descendants of such person; which acts shall

be indicated in the request by the relative number and year thereof.

(4)

Any action shall be brought by way of sworn application

before the competent court against the Director.

(5) In any such action, the declaration referred to in sub-

articles (4) and (5) of article 158 of the Code of Organization and

Civil Procedure may also be confirmed on oath by any officer

referred to in sub-article (1) or in sub-article (4) of article 306.

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(1) Fifteen days at least before the hearing of the action

referred to in the last preceding article, a notice as in Form B in

Part II of the First Schedule to this Code shall, by order of the

court, be published in the Government Gazette, calling upon any

party interested to declare, within fifteen days from the publication

of such notice, by means of a note, whether he desires to contest the

action.

(2) Notice of the day appointed for the trial of the action shall

be given to any person who shall have filed such note within the

said time.

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The provisions of the last two preceding articles shall not

affect the provisions contained in articles 960, 961 and 962 of the

Code of Organization and Civil Procedure.

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(1) Any correction, cancellation or registration ordered by

the court shall be made by the Director within the time of ten days

from the day on which the judgement shall have become res judicata

and shall be made on the strength of a true copy of the judgement to be

supplied to him by the Registrar.

(2) A reference of such judgment shall be made by means of a

note in the margin of the register.

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(1) Notwithstanding the provisions of articles 253 to 256,

both included

(a) the correction of a registration consisting in the

rectification of the erroneous indication of any one or

more of the particulars specified, in respect of each

act, in Part III of the First Schedule to this Code, may

also be effected upon an order made in writing by the

retired Judge or retired Magistrate or retired advocate

of the Court of Revision of Notarial Acts; and

(b) where the registration of an Act of Birth of a person may

give rise to the creation of a double identity or to lack of

clarity regarding the identity of the said person due to the

fact that the said person would not still be registered by the

said name and, or surname in the official acts and, or

documents of another country, the retired Judge, the retired

Magistrate or the retired advocate of the Court of Revision

of Notarial Acts shall have the power upon the application

of that person to order that the necessary annotations be

made on the Act of Birth of that person as well as any

other act of civil status wherein the name and, or surname

of the said person appears for the purpose of making the

said changes in the name and, or surname known.

(2) The demand for any such correction shall be made by an

application filed in the Court of Revision of Notarial Acts,

accompanied by a full copy of the registration in respect of which

the correction is required.

(3) A copy of any such application shall be served on the

Director of the Public Registry within three (3) working days of its

being filed.

(4) The applicant shall be required to produce such evidence as

the said retired Judge or retired Magistrate or retired advocate may

deem necessary and, before making any order, he shall give to the

Director of the Public Registry an opportunity of being heard.

(5)As soon as may be after the date of any order made as

aforesaid by the said retired Judge or retired Magistrate or retired

advocate and, in any case, not later than ten (10) days from such

date, the registrar of the said court shall, at the expense of the

applicant, serve a copy thereof on the Director of the Public

Registry and shall cause a notice of the effect thereof to be

published in the Gazette.

(6)The Director of the Public Registry or any person interested

may, within six (6) days of the publication of the said notice in the

Gazette, enter an appeal from such order by means of an

application to the Court of Appeal.

(7)Notice of any appeal so entered by any person other than the

Director of the Public Registry shall be given to the latter by the

Registrar of Courts not later than two (2) days from the date of

filing of the application of appeal.

(8) (a)Any correction or annotation ordered as aforesaid by such

retired Judge or retired Magistrate or retired advocate shall be

made by the Director within ten (10) days of the publication of the

order in the Gazette or, where an appeal against such order has been

entered, within six (6) days of the day on which the matter is finally

disposed of by the Court of Appeal.

(b) Where the correction or annotation on the Act of Birth

is in re spect of a person who is not yet a citizen of

Malta, such registration with the correction or

annotation as ordered by the Court of Revision of

Notarial Acts shall be made by the Director only after

the applicant is confirmed to be registered as a citizen

of Malta.

(9) A reference to the order made by such retired Judge or retired

Magistrate or retired advocate or to the judgment of the Court of

Appeal shall be entered in the margin of the register against the

entry affected.

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(Deleted by Act XI.2015.18).

Laws of Malta — Chapter 16 — CIVIL CODE

(Deleted by Act XI.2015.18).

Laws of Malta — Chapter 16 — CIVIL CODE

(Deleted by Act XI.2015.18).

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Where it is found after the Director shall have signed the

declaration referred to in article 246, that an error has been made,

and such error had been incurred in transcribing an act in the

register, the correction of such error shall be made by the Director

by means of a note at the foot of the entry. Such correction shall be

dated and signed by the Director.

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Public holidays shall not suspend the running of any of the

times established in this Title.

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(1) The registers as well as the acts and documents

annexed thereto shall be inspected twice in every year by the Court

of Revision of Notarial Acts.

(2) The first inspection shall take place during the months of

March and April, and the second during the months of September

and October.

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The court shall in the course of such inspection, ascertain

whether the provisions of this Title have been complied with by the

Director or one of the Assistant Directors or of the officers

mentioned in sub-article (1) of article 306, as the case may be, and

it shall be lawful for the court, in respect of any contravention, to

inflict upon the Director or an Assistant Director or an officer

mentioned in sub-article (1) of article 306, as the case may require,

a fine (ammenda) not exceeding eleven euro and sixty-five cents

(11.65)

Provided that, where the contravention consists in the

omission of anything which is required to be done under this Title

and it is not possible for the court to ascertain who was responsible

for such omission, the contravention shall be deemed to have been

committed by the Director and the punishment shall be inflicted

accordingly.

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Any person required by the competent officer to give

information concerning the particulars required for the drawing up

of any of the acts referred to in this Title, who refuses to answer

any question put to him by such officer relating to such particulars,

or falsely states that he does not know such particulars, shall, on

conviction by the competent court, be liable to imprisonment for a

term not exceeding three months.

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Any person who, either of his own accord or when

questioned by the competent officer, knowingly makes any false

declaration concerning any particulars required for the drawing up

of any of the said acts, shall, on conviction by the competent court,

be liable to the punishment established in the last preceding article.

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Whosoever shall, except in the cases provided in the

foregoing articles, offend against any of the provisions of this Title

or disobey any order given to him under the provisions of this Title

shall, on conviction by the competent court, be liable to detention

for a term not exceeding one month or to a fine (ammenda) not

exceeding eleven euro and sixty-five cents (11.65).

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If, after undergoing punishment, the offender shall persist

in refusing to answer any question put to him under the provisions

of article 262, or to comply with the provisions of the law, or to

obey the order mentioned in the last preceding article, every such

refusal shall, each time it is repeated, be deemed to be a new

offence.

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(1) Nothing in the foregoing articles contained shall

affect the application of any heavier punishment as provided in the

Criminal Code.

(2) Any person guilty of forgery of any of the acts or registers

mentioned in this Title, or of any certificate or other document

which, under the provisions of this Title, may be delivered, in lieu

of the act, in connection with the registration of any birth,

marriage, or death, shall be liable to the punishment established in

the Criminal Code for forgery of public writings.

(3) Action shall be taken by the Police ex officio in respect of

any offence against the provisions of this Title.

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Where several persons are bound to give notice, or to

make a declaration, or to perform any other act, and the obligation

is such as to be capable of being performed by any one of such

persons alone, the performance by any one of such persons shall

operate so as to discharge all the others.

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The fees established in Part I of the First Schedule to this

Code may from time to time be amended, substituted or added to by

regulations made by the Minister responsible for the Public

Registry and shall be levied by the officer designated by the said

Minister for that purpose.

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(1) There shall be maintained at the Public Registry

Office in Malta and in Gozo a register, to be called the Adopted

Persons Register, in which shall be made such entries as may be

directed to be made therein by adoption decrees, but no other

entries.

(2) In the Adopted Persons Register maintained at the Public

Registry Office in Malta there shall be entered the adoption decrees

relating to any person whose act of birth is registered in that Office

or is not registered in any Public Registry Office in these Islands,

and in the Adopted Persons Register maintained at the Public

Registry Office in Gozo, there shall be entered the adoption decrees

relating to any person whose act of birth is registered in that Office.

(3) Where an entry in the Adopted Persons Register contains a

record of the date of the birth or the country or the town or village

of the birth of the adopted person, a certified copy of that entry

shall, until the contrary is proved, be received as evidence of that

date or country or town or village in all respects as if the copy were

a certified copy of an act of birth.

(4) The Director of the Public Registry shall cause an index of

the Adopted Persons Register to be made and kept in the Public

Registry Office in Malta and in Gozo; and every person shall be

entitled to search that index and to have a certified copy of any

entry signed by the Director in the Adopted Persons Register in all

respects upon and subject to the same conditions as to payment of

fees and otherwise as mutatis mutandis are applicable under this

Title, in respect of searches in the register books kept in the Public

Registry and in respect of the supply from that Office of certified

copies or translations of entries in the register books of the acts of

birth, marriage and death.

(5) The Director of the Public Registry shall, in addition to the

Adopted Persons Register and the index thereof, keep such other

registers and books, and make such entries therein, as may be

necessary to record and make traceable the connection between an

entry in the register book of acts of birth which has been marked

"A d o p t e d " p u r s u a n t t o a r t i c l e 1 2 5 o r a r t i c l e 2 9 0 , a n d a n y

corresponding entry in the Adopted Persons Register; but the

registers and books kept under this sub-article, the adoption decrees

and any amendment thereof communicated to the Director of the

Public Registry, and any index thereof shall not be open to public

inspection or search, and nor shall the Director of the Public Registry

furnish any information contained in or any copy or extract from any

such registers, books or decrees to any person, except under an order

of a court or in exceptional cases, to any public officer duly authorised

for that purpose by the Minister.

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(1) A diplomatic or consular representative, when so

requested by any person interested, shall, in respect of a child who

is born or of a person who dies in a foreign country and is a citizen

of Malta -

(a) draw up the act of birth of such child or the act of

death of such person and record such act in an apposite

register;

(b) receive for registration the act of birth of such child or

the act of death of such person issued by the competent

authority of the place where the birth or death has

taken place and record such act in the apposite register

referred to in the last preceding paragraph.

(2) Where a citizen of Malta marries in a foreign country, a

diplomatic or consular representative shall receive for registration,

at the request of either of the parties contracting such marriage or

any parents of either of them, any act which according to the law of

the country where the marriage has taken place is evidence of the

marriage and shall record such act in an apposite register.

(3) The provisions of this Title shall, as far as practicable,

apply to and for the purpose of the acts drawn up and the registers

kept under the provisions of the foregoing sub-articles by

diplomatic and consular representatives, who shall have in respect

of such acts and registers the same powers, rights and obligations

as are in this Title conferred or imposed upon the Director of Public

Registry.

(4) The registers referred to in sub-articles (1) and (2) of this

article shall be kept for yearly periods and shall contain an

alphabetical index of the registrations entered therein. A certified

duplicate copy of such registers with the diplomatic or consular

r e p r e s e n t a t i v e ’s s i g n a t u r e i m m e d i a t e l y a f t e r t h e l a s t e n t r y

transcribed therein shall be transmitted to the Director of Public

Registry, for preservation in the Public Registry in Malta, not later

than the 31st day of March of the year immediately following the

year to which the registers refer, and the provisions of articles 251,

252, 253, 254, 255, 256 and 257 shall apply in regard to the

registrations contained in such duplicate registers as if they were

registrations in the register books mentioned in article 238.

(5) The Director of the Public Registry, within thirty days of

any correction, cancellation or annotation which he makes in a

duplicate register pursuant to the judgment of a court or to the order

of the retired Judge or retired Magistrate or retired advocate of the

Court of Revision of Notarial Acts, shall inform of such correction,

cancellation or annotation the diplomatic or consular representative

in the country where the original register is kept who shall

forthwith cause the same correction, cancellation or annotation, as

the case may be, to be made in such register and shall initial it.

(6) Any person who before a diplomatic or consular

representative commits the offence referred to in article 263 may in

Malta be prosecuted, tried and punished for such offence in the

same manner and to the same extent as if the offence had been

committed in Malta.

(7) Any person who suppositiously represents to a diplomatic

or consular representative an infant to have been born of a woman

w h o h ad n o t b e en d e l i v e r e d o f a c h i l d so a s t o c a u s e su ch

representative to draw up an act of birth under sub-article (1) of

this article shall be prosecuted, tried and punished in Malta in the

same manner and to the same extent as if he had committed in

Malta the corresponding offence mentioned in article 210 of the

Criminal Code.

(8) The provisions of sub-articles (6) and (7) of this article

shall not apply if the person who has committed the offence has

been tried for the same facts constituting it in another country.

(9) Any reference in this article to a diplomatic or consular

representative shall be deemed to be a reference to the diplomatic

or consular representative of the Government of Malta in the

foreign country where a birth, marriage or death has taken place.

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(1) The Minister responsible for the Public Registry may

make regulations

(a) providing for the making of duplicates of original acts

of civil status or other documents relative to civil

status, entered in the Public Registry in virtue of this

Code or of any other law, as well as duplicates of the

relative registers of such acts or documents, as well as

duplicates of the relative index of such acts,

documents or registers where the original act,

document, register or index has been lost, destroyed or

damaged, whether such loss, destruction or damage

has occurred by wear and tear or otherwise;

(b) prescribing the mode in which such duplicates shall be

prepared and authenticated;

(c) prescribing that any acts, documents, registers or

indices referred to in paragraph (a) be reproduced by

microfilming, and the mode in which such

reproductions are to be made, stored and made

accessible to the public;

(d) prescribing the manner in which reproductions made

by microfilming and copies thereof may be

authenticated;

(e) providing for the computerisation, including storage of

information taken from any act or document entered in

the Public Registry and for the production of

documents containing statements of such information

and the authentication of such documents;

(f)

prescribing the form of the application for the issue of

certificates containing a full copy or an extract of any

act, document, register or index;

(g) adding new forms or amending or modifying any of

the forms in Part II of the First Schedule to this Code;

and

(h) providing for any matter incidental or supplementary

to any of the foregoing provisions.

(2) Any duplicate copy made in accordance with regulations

made under sub-article (1) shall for all intents and purposes,

replace the relative original act, document, register or index.

Sub-title II

O F A CTS OF B IRTH

Laws of Malta — Chapter 16 — CIVIL CODE

In the case of every child born, it shall be the duty of

parents, and in default of both, of the physician, surgeon, midwife,

or any other person in attendance at the birth, or in whose house the

birth has taken place, to give, within fifteen days of such birth,

notice thereof to the officer charged with the duty of drawing up the

act of birth.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Notice of the birth may be given by transmitting to

the said officer a certificate of baptism, signed by the parish priest

or other clergyman who shall have baptised the child.

(2) Any such certificate shall, if it contains the particulars

required for the drawing up of the act of birth, be accepted in lieu

of the declaration mentioned in the following articles, and, the said

officer, if satisfied as to the correctness of the particulars therein

contained, may, on such certificate, draw up the act of birth.

(3) In any case, however, the certificate of baptism shall be

delivered to the Director together with the act of birth.

Laws of Malta — Chapter 16 — CIVIL CODE

Notice of the birth of a child may also be given by means

of a letter signed by the person giving the notice by electronic

means, or verbally; in the latter case, the person giving the notice

shall attend personally before the officer charged with the duty of

drawing up the act of birth.

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Where, under the provisions of the last preceding article,

the notice of the birth is given personally by any one of the parents

of the child, the said officer shall, upon the declaration made by the

father or the mother respecting the particulars required for drawing

up the act of birth, draw up such act without any delay.

Laws of Malta — Chapter 16 — CIVIL CODE

Where notice of the birth is given by any person other than

by any one of the parents of the child, or where such notice is given

by the parents or any other person by means of a letter, the said

officer shall, within the three next following days, require any one

of the parents of the child, or both, to attend at his office to make

the declaration respecting the said particulars

Provided that in the case where such notice is given by

electronic means by the parents of the child, the officer shall not

require the parents to attend his office to make the declaration

respecting the said particulars

Provided further that, notwithstanding anything found in this

article, the officer may, in any case as he deems fit, require the parents

to attend his office.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) In default of any one of the parents of the child, or if

no notice has been given, the said officer shall require any person

whom he believes to have knowledge of the particulars required for

the drawing up of the act, to attend in order to make the declaration

concerning such particulars.

(2) The same shall apply where the said officer is not satisfied

as to the correctness of the particulars given to him by any one of

the parents or any other person, or contained in the certificate

mentioned in article 273.

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(1) Every act of birth shall be drawn up in accordance

with Form C in Part II of the First Schedule to this Code and,

savi ng a ny o th er p ro vi sio ns, it s hal l con t ain t he fol lo wi ng

particulars

(a) the date of the act itself;

(b) the hour, day, month, year, and place of birth;

(c) the sex of the child

Provided that where the gender identity of the minor is

not yet determined, the sex may be recorded as

undeclared until it is so determined.

Provided also that, for the purposes of this article, the

term "sex" shall also include the term "gender", so

however that it shall only include the female gender and

the male gender;

(d) the name given to the child, and, where more names

are given, a special indication of the name or names by

which the child is to be called and the surname of the

child;

(e) the name, surname, a legally valid identification

document, age, place of birth and residence of the

parents of the child, and the person making the

declaration

Provided that

(i)

where the child is born in wedlock, an indication of

the marriage contracted between the spouses shall

be stated in the Act of Birth;

(ii) when a child is born more than three hundred

days from the legal separation, divorce or

annulment of the marriage of the person who

gave birth no reference shall be made to such

legal separation, divorce or annulment of

marriage of the person who gave birth;

(iii) when a child is born less than three hundred days

from the legal separation, divorce or annulment

of the marriage of the person who gave birth a

reference shall be made to such fact in the act of

birth instead of the indication made by virtue of

paragraph (i) of this proviso;

(iv)

where the provisions of article 280(2)(a) apply a

reference to such fact shall be made in the act of

birth;

(f)

the name and surname of the parents of each of the

parents of the child, and of the parents of the person

making the declaration, stating whether the are alive or

dead.

(2) Without prejudice to the proviso of sub-article (1)(c), in the

event that any conflict arises in relation to the registration of the

sex of the child, the parents shall, within thirty (30) days from the

day when the notice of birth is given, file an application before the

Civil Court (Voluntary Jurisdiction Section), requesting the Court

to order, after considering the best interests of the child, the sex of

the child that shall be registered on the Act of Birth

Provided that if such application is not so filed within the time

specified in this sub-article, the officer charged with the duty of

drawing up the Act of Birth shall register the sex as undeclared.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The Director of Public Registry may refrain from

registering the name or names given to the child in the relative act

of birth, if the name or names, given to the child

(a) is shorter than three letters;

(b) includes numbers or symbols;

(c) is a common surname in Malta;

(d) is derived from an obscene or offensive word or it

consists of a word or words associated with sexual

activity; or

(e) exposes the child to ridicule or contempt.

(2) It shall be lawful for any person to request the Director of

the Public Registry, by means of a signed declaration submitted in

Form V contained in Part II of the First Schedule to this Code, to

make an annotation in his act of birth or in the Adopted Persons

Register in order to

(a) correct any minor spelling variations to his name;

(b) use a "to be called name" resulting from any act of

civil status of such person or from a Maltese

identification document or passport

Provided that such act of civil status or Maltese

identification document or passport of such person was

issued prior to 1st December 2012;

(c) correct his name to reflect the Maltese diacritic letters of

the Maltese alphabet.

(3) The declaration made in Form V contained in Part II of the

First Schedule to this Code shall be irrevocable and shall be

accepted by the Director of the Public Registry upon the payment

of a fee as prescribed by the Minister responsible for the Public

Registry.

(4) If the Director of the Public Registry allows the request, the

annotation referred to above, shall be effective as from the day

when he shall enter such modification in the act of birth and the

"extract" mentioned in article 251 shall indicate the particulars

resulting from such annotations.

(5) A person, in respect of whom changes in particulars

relating to his change in names have been annotated in accordance

with the preceding provisions, shall report the fact to the authorised

officer under the Identity Card and other Identity Documents Act

and to the Passport Officer under the Passports Ordinance who shall

issue a new identity card and a new passport that indicate the

particulars in accordance with the annotation written in the relative

act. The expenses for the issue of the new identity card and the new

passport shall be borne by the person who changed his particulars.

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(1) In the case of a child conceived and born out of

wedlock, the name of the father shall not be stated in the act, except

at the request of the person acknowledging himself before the

officer drawing up the act to be the father of such child and the

mother’s single status shall not be declared or in any other manner

indicated.

(2) Where the child is not acknowledged jointly by both the

father and the mother, the provisions of article 86 shall apply.

(3) Where no such request is made, there shall be stated in the

proper place in the act that the father of the child is unknown.

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(1) Where the person who gave birth to the child is married,

the name of the other spouse shall be entered in the act as that of

the parent, notwithstanding any declaration to the contrary, saving

any correction which may subsequently be made upon a judgment

in regard to the filiation of the child.

(2)

The provisions of this article shall not apply -

(a) if the other spouse was, during the whole period of the

three hundred days next preceding the day of the birth

of the child, absent from Malta, and such absence is

attested in writing and on oath before the retired Judge

or retired Magistrate or retired advocate of the Court of

Revision of Notarial Acts by at least two trustworthy

persons;

(b) if one of the spouses had, during the whole of the said

period, lived legally separated from the other spouse; or

(c) if before the notice of the birth is given the spouses

together declare in writing and on oath before the

retired Judge or retired Magistrate or retired advocate of

the Court of Revision of Notarial Acts that during the

whole period of the three hundred days next preceding

the day of the birth of the child they did not have a

sexual relationship together.

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(1)

In the case of a child conceived and born out of

wedlock, where notice of the birth of such child or the declaration of the

particulars concerning the birth of such child has not been given or made

by the person who gave birth to such child, or by either of such person’s

parents, or siblings, the said officer shall, at least two days before

entering in the act the particulars relating to the person who gave birth to

the child, give notice to the person who shall have been indicated to him

as the person who gave birth to the child, or to either of such person’s

parents; and if, within the said two days, it shall be denied that such

person is the person who gave birth to the child, the officer shall make a

report thereof to the retired Judge or retired Magistrate or retired

advocate of the Court of Revision of Notarial Acts, who, after

examining on oath such person and any other person whom he believes

to be able to give correct information, shall, if satisfied that such person

is the person who gave birth to the child, order that such person’s name,

together with such other particulars as are required under the provisions

of the foregoing articles, be entered in the act of birth, and that the

depositions taken be delivered, in original, to the Director together with

the act.

(2)

In the case of a child conceived and born out of wedlock

notice of whose birth has not been given, and the person who gave birth

to the child and such person’s parents are dead or cannot be found,

notice of the birth may at any time be given to the said officer by any

person bound to give such notice as heretofore, or by any person having

an interest or by the child or its lawful representative and the said officer

shall make a report thereon to the retired Judge or retired Magistrate or

retired advocate of the Court of Revision of Notarial Acts who shall

cause a notice in the Form BB in Part II of the First Schedule to be

published in the Gazette, calling upon any party interested to declare,

within fifteen days from the publication of that notice, by means of a

note, that he desires to contest such registration, and on the expiration of

such period and after examining on oath any person whom he believes to

be able to give correct information, whether such person shall have filed

a note or otherwise, and following the examination of any documentary

evidence that may be produced, shall, if satisfied that the person who

gave birth to the child has been established, order that the name and

surname of the person who gave birth to the child, together with such

other particulars as are required under the provisions of the foregoing

articles, be entered in the act of birth, and that the depositions taken be

delivered, in original, to the Director together with the act.

(3)

In any case referred to in sub-articles (1) and (2) the act of

birth shall be countersigned by the said retired Judge or retired

Magistrate or retired advocate.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) On the entry of the particulars concerning the birth of

a child, the act shall be read to the person making the declaration of

such particulars; it shall thereupon be signed by such person and

then by the officer drawing up the act

Provided that in the case that the said particulars are given by

electronic means, this sub-article shall not apply.

(2) Where the person making the declaration states that he is

unable to write, an entry of such fact shall be made by the side of

the declarant’s name.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) In the case of a still-born child, the fact of stillbirth

shall be stated in the act.

(2) Where the child, having been born alive, dies at any time

before the drawing up of the act, the act of death shall be drawn up

immediately after the act of birth.

(3) In case of abortion, an act of birth shall only be drawn up

where the foetus shall have completely assumed the human form.

Laws of Malta — Chapter 16 — CIVIL CODE

It shall be lawful for the officer drawing up an act of birth

to demand to see the child, before drawing up such act.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) In the case of any birth at sea, on board a vessel

registered in Malta, the master shall, within twenty-four hours enter

in his log-book the fact of such birth with the particulars required

under articles 278, 279, 280 and 283.

(2) Upon the arrival of such vessel in Malta, the Authority for

Transport in Malta shall transmit a copy of such entry to the officer

charged with the drawing up of the acts of birth in Malta, who shall

forthwith draw up the act of birth of such child.

(3) Where the arrival of such vessel in Malta does not take

place within three months after the birth of the child, the master

shall, not later than three months after the said birth, transmit a

copy of the relative entry to the Authority for Transport in Malta

who shall deal with it as if the said vessel had arrived in Malta.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The Director of the Public Registry may, for

humanitarian reasons only, register the birth of children that were

born at sea on board a vessel that is not registered in any place and

provided that it results that the Maltese islands were the first

harbour where such vessel disembarked immediately after the birth

of such child.

(2) The Director shall proceed with such registration if he is

satisfied, by means of scientific verifications, assurances of

geog ra phi cal co-ordi nat ion s an d any ot her v eri fi cati ons or

assurances that the Director deems appropriate, that the child was

born at sea on board a vessel that is not registered under any

jurisdiction. In such cases, the place of birth of the child shall be

listed as born at sea.

(3) The registration made under this article shall in no way

affect or prejudice the provisions of the Maltese Citizenship Act.

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(1) Nothing contained in article 285 shall affect the

obligation of the parent who did not give birth, or, in default, of the

parent who gave birth to the child, to make, within five days from

their arrival in Malta, the declaration of the particulars concerning

the birth of the child to the officer who, having regard to the place

of residence of the parent who did not give birth, or, in default, of the

parent who gave birth to the child, is charged with the duty of

drawing up the act of birth; and such officer shall, upon such

declaration, proceed to draw up the act of birth, unless such act

sh all have already bee n d raw n u p an d reg istered und er the

provisions of article 285.

(2) If the particulars contained in the said declaration or any of

them differ in any respect from the corresponding particulars

entered in the registered act, or if any of the particulars contained

in the said declaration is omitted from the registered act, a

correction in the register may be made under the authority of the

retired Judge or retired Magistrate or retired advocate of the Court of

Revision of Notarial Acts, who shall countersign such correction.

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(1) Where any new-born child is found, the officer

charged with the duty of drawing up the acts of birth in the place

where such child is found, shall, with the assistance of one or more

Government District Medical Officers, draw up an act to be styled

"repertus", according to Form D in Part II of the First Schedule to

this Code.

(2) In such act the said officer shall enter the following

particulars- the apparent age and the sex of the child, the name

given by him to the child, the place where the child was found, the

person or institution in whose charge the child was placed, whether

the child bore any apparent mark, the kind of clothing and any

other object found on the person of the child.

(3) Such act shall also be delivered to the Director for

registration as in the case of an act of birth.

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The officer drawing up an act of birth or a repertus, shall,

within two days from the day on which such act or repertus was

drawn up deliver the same to the Director for registration.

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(1) Where, after an act of birth of a child conceived and

born outside wedlock has been registered without indication of the

name of the father, the paternity of such child is determined by a

judgment of the court, the name of the father may, at the request of

any person interested, be entered by means of a note in the margin

of the register.

(2) The same shall apply where, after the registration of a

repertus it becomes known who the parents of the foundling are,

either by means of a declaration made by themselves or by a

judgment of the court.

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(1) The presumption applicable to a person conceived and

born out of wedlock in virtue of article 102 shall also be entered in

the register by means of a note in the margin, and, where sub-

article (3) of article 125 falls to be applied, the adoption of any

person shall be entered in the register by means of the marking

referred to in that sub-article.

(2) In the case of such presumption, it shall be stated in the

note whether the presumption took place by subsequent marriage or

by a decree of the competent court.

(3) The registration of the presumption of any person whose act

of birth is not registered in the Public Registry shall be made in a

book kept for the purpose, and, in any such registration, there shall

be stated all such particulars as are required for the drawing up of

an act of birth or such of them as may be known.

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(1) The party making the request for any entry as

provided in the last two preceding articles shall deliver to the

Director an authentic copy of the public deed, judgment or decree,

relating to the judicial declaration of paternity or maternity, or

presumption in virtue of articles 101 to 112.

(2) In the case of a presumption arising out of subsequent

marriage, which has been duly registered, a reference to such

registration shall be made in the note: where the marriage has not

been registered, the entry shall not be made unless the party making

the request for the entry shall deliver to the Director a document

attesting the celebration of the marriage.

Laws of Malta — Chapter 16 — CIVIL CODE

Where a presumption arising out of subsequent marriage

applies to a child conceived and born out of wedlock, and such

marriage took place prior to the registration of the birth of such

child, the act of birth of such child may be drawn up directly as in

the case of a child conceived or born in wedlock.

Laws of Malta — Chapter 16 — CIVIL CODE

(1)The person giving notice of the birth shall also deliver

a declaration by the parents of the child indicating the surname to

be used by the child in terms of the choice made by virtue of sub-

articles (3) or (4) of article 4, or of article 4A, or of article 92, and

such surname shall be registered in the column under the heading

"Name or names by which the child is to be called and Surname" in

the Act of Birth immediately after such name or names.

(2) Where no such declaration is made in the case of a child

conceived and born out of wedlock or where the parents are in

disagreement, any of the parents may request the directions of the

competent court in terms of article 131.

Sub-title III

O F A CTS OF M ARRIAGE

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Where any marriage takes place, the parties contracting

such marriage shall draw up or cause to be drawn up an act, in

accordance with Form E in Part II of the First Schedule to this

Code, entering therein -

(a) the date of the act;

(b) the name, surname, date and place of birth, a legally valid

identification document and place of residence of the

parties;

(c) the name, surname, date and place of birth and place of

residence of the witnesses present at the solemnization

of the marriage;

(d) he name and surname at birth and after marriage of the

parents of the parties;

(e) the day, month and year when, and the church, chapel,

or other place where the marriage took place;

(f)

a declaration as to the solemnization of the marriage

signed by both of the parties, or if the marriage takes

place by proxy by the proxy and by the other party, in

the presence of and countersigned by an officer of the

Marriage Registry or other person authorized for the

purpose by the Marriage Registrar; and

(g) the surname after marriage of both spouses, in

accordance with article 4(1).

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The act of marriage shall, as soon as it is completed and

signed, be delivered for registration to the person by whom the

declaration referred to in paragraph ( f ) of article 293 is

countersigned, and such person shall at the earliest opportunity take

all such steps as may be required for its registration by the Director.

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(1) Any judgment or other decision given by a competent

court whereby a registered marriage is annulled or the status

resulting therefrom is affected shall, at the request of any person,

be entered in the register by means of a note in the margin

Provided that where a judgement or a decree of divorce are

given by the competent civil court, these shall be registered in

accordance with article 66A(4).

(2) The person making the request shall deliver to the Director

an authentic copy of the relevant judgement or other decision.

(3) The Director shall also enter, by means of a note in the

margin of an act in respect of a registered marriage, any reversion to

their surname at birth or to the surname of their previous marriage or

any prohibition of use of the surname of the other spouse referred to

(a) in a note of personal separation between the spouses

enrolled in accordance with article 62A, and a

reference to the date and place of marriage shall be

made in any such note of enrolment; or

(b) in a judgment or decree of divorce registered in

accordance with article 66A(4).

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(1) The provisions of this Sub-title shall mutatis mutandis

apply to civil unions contracted under the Civil Unions Act.

(2) An act of civil union shall be in the form stipulated in Form

EE in Part II of the First Schedule to this Code.

Sub-title IV

O F A CTS OF D EATH

Laws of Malta — Chapter 16 — CIVIL CODE

(1) On the death of any person, the physician or surgeon

in attendance during the last illness who of his own personal

knowledge or from information obtained from any other person is

aware of such death shall, without delay, give notice thereof in

writing, manually or electronically signed as defined in Regulation

(EU) No. 910/2014 of the European Parliament and of the Council of

23 July 2014 on electronic identification and trust services for

electronic transactions in the internal market, according to Form F in

Part II of the First Schedule to this Code, to the officer charged

with the duty of drawing up the act of death, specifying the house

or other place in which such person died, the cause of death, and

the hour at which the death occurred.

(2) Such physician or surgeon may deliver the notice to any

adult member of the family of the deceased, to be transmitted to the

officer above-mentioned or such notice may be delivered by electronic

means.

(3) The provisions of this article shall not apply, if the deceased

is one of the persons, on the occasion of whose death the drawing

up of an act of death is not, under the provisions of article 235,

required for the purposes of this law.

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In the case of death of any person who has not been

attended by a physician or surgeon, it shall be the duty of the

members of the family and of the domestic servants of the deceased

as well as of the person occupying the house or other place in

which the death occurred, or having the management of such house

or place, to give notice of such death

Provided that such notice may be given either by its delivery,

by any person, to the officer referred to in article 296(1) or by it being

delivered by electronic means.

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(1) If after the disappearance of a person a magisterial

enquiry is held and the enquiring magistrate is of the opinion that,

taking all the circumstances of the disappearance into consideration

the conclusion is that the person is probably dead, then a copy of

the procès-verbal shall be transmitted by the enquiring magistrate

to the officer charged with the drawing up of the act of death and

such officer shall, within two days from the receipt of the copy of

the procès-verbal, draw up according to Form G in Part II of the

First Schedule to this Code a provisional act of death of the person

whose disappearance has been established by the procès-verbal.

The same officer shall, within two days from the drawing up of the

said provisional act of death, deliver the same to the Director for

registration.

(2) The provisional act of death shall become final after the

lapse of one year from the date of registration.

(3) For the purposes of this article the enquiring magistrate

shall indicate in the procès-verbal all the particulars mentioned in

paragraphs (a), (b), (c) and (d) of article 301 and the probable time,

date and place of the disappearance of the person concerned.

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(1) If the absence of a person has continued for a period

of six years since provisional possession has been granted or if the

absence has been declared by judgment as provided under article

223 and such person is not one in respect of whose death the

provisions of article 234 are not applicable in terms of article 235,

then the heirs, whether testamentary or heirs-at-law of the absentee,

or their heirs, or any interested person or the State Advocate, may

make a demand to the court of voluntary jurisdiction in the island

in which the absentee last resided to order the officer charged with

the duty of drawing up the act of death, to draw up and deliver to

the Director for registration within four days from that order, a

certificate of death of the absent person according to Form G in

Part II of the First Schedule to this Code.

(2) The absent person shall be presumed to have died on the

day on which he was last heard of, and that date and all the

particulars referred to in article 301, where known, shall be entered

in the act of death.

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Whenever a final certificate of death is drawn up and

registered in accordance with article 298 or 299 and the person

whose death has been so registered subsequently returns or his

existence is established, the provisions of article 226 shall apply.

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The officer mentioned in article 296, howsoever he may

have received information of the death of any person, shall, after

ascertaining such death, draw up, within two days from the receipt

of such information, an act according to Form G in Part II of the

First Schedule to this Code containing the following particulars

(a) the date of the act;

(b) the name, surname, a legally valid identification

document, age, place of birth, and place of residence of

the deceased;

(c) the name and surname of each of the parents of the

deceased stating whether they are alive or dead;

(d) the name, surname of the man or woman, if the dead

person was married, in a civil union, in a cohabitation

registered under the Cohabitation Act or enrolled by

means of a public deed under the Cohabitation Act, 2020

or a widow or widower;

(e) the hour, day, month, and year when, and the place

where the death occurred, and the place where the

deceased was, or will be, buried;

(f)

the cause of death.

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The said officer shall, for the purpose of collecting or

ascertaining the particulars specified in the last preceding article,

have the same powers as under article 277 are vested in the officer

charged with the duty of drawing up acts of birth.

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(1) The superior officer of every hospital, asylum or other

public charitable institution, shall take steps to collect, from the

time of admission, the particulars specified in paragraphs (b), (c)

and (d) of article 301, in regard to every person admitted into the

institution under his charge.

(2) The same shall apply to the superior officer of any prison,

in regard to any prisoner.

(3) The police shall give to the said officers such assistance as

may be required to enable them to comply with the provisions of

this article.

(4) The provision of this article shall not apply to military or

naval hospitals or prisons.

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(1) Where any person dies at sea, on board a vessel

registered in Malta, the master shall, within twenty-four hours,

enter in his log-book the fact of such death with the particulars

specified in article 301.

(2) Upon the arrival of such vessel in Malta, the Authority for

Transport in Malta shall transmit a copy of such entry to the officer

in charge with the drawing up of the acts of death in Malta, who

shall forthwith draw up the act of death of such person

Provided that such notice may also be delivered by electronic

means.

(3) Where the arrival of such vessel in Malta does not take

place within three months after the said death, the master shall, not

later than three months after the said death, transmit a copy of the

relative entry to the Authority for Transport in Malta who shall deal

with it as if the said vessel had arrived in Malta.

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The officer drawing up an act of death, shall, within two

days from the drawing up of the act, deliver the same to the

Director for registration.

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(1) Any officer who holds the degree of doctor of laws or

equivalent qualification and either a warrant to practise as an

advocate or a warrant to practise as a notary public and who

performs duties in the Public Registry may exercise all or any of

the functions which are under any provision of this Code or of any

other law assigned to the Director of the Public Registry, and that

law shall be construed accordingly.

(2) In the exercise of any such function, the said officer shall

have the same powers and the same obligations as are conferred or

imposed upon the Director, without prejudice to the provisions of

sub-article (4) of this article.

(3) The words ‘signed by the Director’ or words to similar

effect, with reference to certificates of civil status, shall be taken to

include any seal, emblem or signature made or processed by

photographic means, by print or in any other form at the discretion

of the Director as further authenticated by the signature of the

issuing officer authorised for the purpose by the Director.

(4) The officers referred to in this article shall, in the exercise

of their functions under this Code or any other law, be subject to

the authority, direction and control of an Assistant Director so

delegated by the Director of the Public Registry and referred to in

this article as the Deputy Director

Provided that the exercise of the Deputy Director’s powers

under this article shall be without prejudice to the overall authority

of the Director.

(5) The Director of the Public Registry shall be the only

competent person to represent in any capacity the Public Registry

in any legal proceedings under this Code or any other law.

BOOK SECOND

OF THINGS

PART I

O F R IGHTS OVER T HINGS

Title I

O F T HINGS AND THEIR D IFFERENT K INDS

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All things which can be the subject of private or public

ownership are either movable or immovable property.

Sub-title I

O F I MMOVABLE P ROPERTY

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The things following are immovable by their nature

(a) lands and buildings;

(b) springs of water;

(c) conduits which serve for the conveyance of water in a

tenement;

(d) trees attached to the ground;

(e) fruits of the earth or of trees, so long as they are not

separated from the ground or plucked from the trees;

(f)

any movable thing annexed to a tenement permanently

to remain incorporated therewith.

Unless a different intention appears from the

circumstances, such thing shall be deemed to be so

annexed to a tenement if it is fastened thereto by any

metal or cement, or if it is otherwise so affixed that it

cannot be removed without being broken or damaged

or without breaking or damaging the tenement.

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The things mentioned in paragraphs (c), (d), (e) and (f) of

the last preceding article become movable as soon as they are

separated from the ground, tree, or tenement, although they have

not yet been removed elsewhere

Provided that the fruits of the earth or of trees, even before they

are detached, shall be considered as movables for the purposes of

article 288 of the Code of Organization and Civil Procedure, as also

when they are the subject of a sale or other disposal, as things

distinct from the earth or tree, and to be separated therefrom.

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The following are immovables by reason of the object to

which they refer

(a) the dominium directum or the right of the dominus on

the tenement let out on emphyteusis, and the

dominium utile or the right of the emphyteuta on such

tenement;

(b) the right of usufruct, or use of immovables and the

right of habitation;

(c) praedial easements;

(d) actions for recovering or claiming any immovable

thing or any of the rights mentioned in paragraphs (a),

(b) and (c) of this article; or for a declaration that an

immovable is not subject to any of such rights; or for

claiming any inheritance or part thereof, or the

reserved portion or any other portion of hereditary

property given by law.

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(1) The words "immovable thing" or "immovable things",

and the word "immovable" or "immovables" without any other

addition or indication restricting their meaning, shall include both

immovables by their nature, as well as immovables by reason of the

object to which they refer.

(2) The "coastal perimeter" is that part of the land which lies

fifteen metres from the shoreline inwards, whether it is foreshore,

landmass or cliff or is a combination of them and, where the

foreshore extends beyond fifteen metres, to the limit of the

foreshore.

The "foreshore" is that part of the coastal perimeter,

including where it exceeds fifteen metres, which is normally

covered by water due to the action of the waves and the use of

which is restricted by this fact. The foreshore extends up to the

reach of the largest wave and, even if it lies beyond the reach of the

waves, to the limits of any beach

Provided that the foreshore shall not extend over or onward

of a schemed public road.

For the purposes of this sub-article

(a) a "beach" is that part of the land contiguous to the

shoreline, irrespective of how far inland it extends,

which is of its nature or characteristics destined for

public use in accordance with its nature and in

accordance with any law from time to time regulating

development planning;

(b) a "landmass" or a "cliff" is that part of the coastal

perimeter which is elevated from the sea, is not

accessible from the sea and, or is not subject to being

covered by any wave; and

(c) the "shoreline" is the land contour which is constantly

in direct contact with the sea; provided that when the

shoreline changes due to erosion or collapse, the

baseline for calculation of the coastal perimeter shall

be adjusted accordingly from time to time without

prejudice to the application of any law regulating

development planning.

(3) Any private titles and rights to the foreshore shall be

registered in the relevant registry in accordance with applicable law

prior to the lapse of ten years from the designated date.

(4) Quays, wharfs and other constructions in harbours, ports,

landing places and yachting centres for the berthing of ships, yachts

and other vessels used in navigation, or of aircraft, or for the

attachment thereto of pontoons, floating quays, or for dockyards,

roads and access paths, or other similar structures in such areas,

shall be regulated by the provisions of special laws governing such

things and the terms "quays", "harbours", "ports", "yachting

centres" and other related terms shall have the meanings assigned

to them by such special laws.

(5) Although contiguous to the sea, such quays and other

constructions and the areas within harbours and ports -

(a) shall be considered to be public property, saving

private titles and rights thereon; and

(b) shall not be considered to be part of the coastal

perimeter for the purpose of this Code until such time

as any part of such areas, belonging to the

Government, are declared and registered as land in the

public domain, saving private titles and rights thereon,

as provided for in the Fourth Schedule.

(6)

In this article

(a) the term "designated date" shall be that date

established by order in the Gazette by the Minister

responsible for Lands;

(b) the term "public domain" shall have the meaning given

to it in the Fourth Schedule;

(c) the term "public property" shall have the meaning

given to it in article 327; and

(d) "relevant registry" means the Public Registry or the

Land Registry or any successor registry.

Sub-title II

O F M OVABLE P ROPERTY

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All things, animate or inanimate, which, without any

alteration of their substance, can move themselves or be moved

from one place to another are movable by nature, even though such

things form a collection or a stock-in-trade.

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Materials derived from a building which has been

demolished, or gathered for erecting a new building, are movables

until they are used in a construction.

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Ships or other water-craft, baths or other floating

structures are also movables.

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The following things are movables by regulation of law

(a) shares or interests in commercial or industrial

companies, even if immovable property is owned by

such companies; in which latter case such shares or

interests shall be deemed to be movables with respect

to each shareholder and only as long as the company

lasts;

(b) life or perpetual annuities, including capitals for

annuities ad formam bullae and debts due for interest

on capitals invested in the fund formerly existing

under the name of Massa Frumentaria, provided such

perpetual annuities, capitals and debts are not subject

to entail;

(c) generally, all obligations, actions, even if hypothecary,

and rights not considered immovable under the

provisions of the last preceding sub-title.

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The words "movable property or things", "movable

effects" or "movable substance" used in any provision of law or in

any disposition of man, without any other addition or indication

restricting their meaning, shall include both the things which are

movable by nature and the things which are generally considered

movable by regulation of law.

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(1) The word "movables" used in any provision of law,

without any other addition or indication restricting its meaning,

shall likewise include both the things which are movable by nature,

and the things considered movable by regulation of law.

(2) If used in any disposition of man, it shall not, of itself,

include money or documents of title to money, jewels, articles of

precious metal or things forming the object of a trade; nor shall it

include property considered as movable by regulation of law.

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(1) The word "furniture" comprises all furnishing

movables, including the pictures and statues forming part of the

furniture of an apartment.

(2) It shall not include, however, collection of books, pictures,

or statues.

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The expression "a house with all that it contains" shall

include all movable things, excepting money or documents of title

to money, jewels, articles of precious metal intended for the

o r na m e n ta ti o n o f t he p e r s o n o r t o b e wo r n , t h in g s t h a t a re

accidentally in the house or that belong to third parties and debts

due or other rights the titles to which are in the house.

Title II

O F O WNERSHIP

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Ownership is the right of enjoying and disposing of things

in the most absolute manner, provided no use thereof is made which

is prohibited by law.

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No person can be compelled to give up his property or to

permit any other person to make use of it, except for a public

purpose, and upon payment of a fair compensation.

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(1) Save as otherwise provided by law, the owner of a

thing has the right to recover it from any possessor.

(2) A possessor who, after being notified of the judicial

demand for the recovery of the thing ceases of his own act, to

possess such thing, is bound, at his own expense, to regain

possession of the thing for the plaintiff, or, if unable to do so, to

make good its value, unless the plaintiff elects to proceed against

the actual possessor.

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Whosoever has the ownership of the land, has also that of

the space above it, and of everything on or over or under the

surface; he may make upon his land any construction or plantation,

and, under it, any work or excavation, and draw therefrom any

products which they may yield, saving, however, the provisions

relating to Praedial Easements under Title IV of Part I of Book

Second of this Code and any other provision of law in regard to

fortifications or other works of defence.

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Any construction, plantation, or work, whether on or over

or under the land, shall, unless the contrary is proved, be deemed to

have been made by the owner at his own expense, and to belong to

him, without prejudice, however, to the rights which third parties

may have acquired.

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Every owner may compel his neighbour to fix, at joint

expense, by visible and permanent marks, the boundaries of their

adjoining tenements.

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Every owner may enclose his tenement, saving any right

of easement to which other parties may be entitled.

Title IIA

O F PROPERTY BELONGING TO THE GOVERNMENT

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(1) The Government is the owner of

(a) all things which it acquires pursuant to the provisions

of this Code or any other special law, herein referred to

as "public property"; and

(b) all things forming part of the public domain, which it

holds as a result of its sovereignty, herein referred to

as "public domain".

(2)

Vacant property belongs to the Government.

(3) Property belonging to the Government may be subject to

private rights in the manner and to the extent stated in this Code

and other special laws.

327. (Deleted by Act XXV.2016.3.).

Title III

O F THE R IGHTS OF U SUFRUCT, U SE AND H ABITATION

Sub-title I

O F U SUFRUCT

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Usufruct is the real right to enjoy things of which another

has the ownership, subject to the obligation of preserving their

substance with regard both to matter and to form.

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If the usufruct includes things which cannot be used

without being consumed, such as money, grain, or liquids, the

usufructuary has the right to make use of them subject to the

obligation of paying the value thereof according to the valuation

made at the commencement of the usufruct; in the absence of such

valuation, he has the option either to return things in like quantity

and of like quality, or to pay their value at the current price at the

end of the usufruct.

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(1) Usufruct may be constituted either by law or by the

will of man; in the latter case, if the usufruct refers to immovable

property, it may not be constituted except by a public deed, and, if

constituted by a deed inter vivos, it shall not be operative with

regard to third parties except from the time when the deed is

registered in the Public Registry upon the demand of any of the

interested parties or of the notary before whom the deed was

executed.

(2) The note for the registration of the deed shall contain the

designation of the parties as specified therein, the date and nature

of the deed, and an indication of the thing to which the deed refers

in accordance with the provisions of the Public Registry Act, and it

shall be signed by the notary before whom the deed was executed.

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(1) Usufruct may be constituted even conditionally or for

a specified period.

(2) It may be constituted in favour of one or more particular

persons.

(3) Where the usufruct is granted to several persons to be

enjoyed by them successively, it shall be operative only in favour

of those persons who are alive at the time when the usufruct

devolves upon the first usufructuary.

§ I. O F THE R IGHTS OF THE U SUFRUCTUARY

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The usufructuary has the right to take all kinds of fruits,

whether natural, industrial, or civil, which the thing subject to his

usufruct is capable of producing.

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(1) Natural fruits are those which are the spontaneous

produce of the soil. The produce and increase of animals and the

produce of stone-quarries or of mines are also natural fruits.

(2) Industrial fruits of a tenement are those which are obtained

by cultivation.

(3) Civil fruits are the rents of property let, emphyteutical

ground-rents, interest on capitals, and annuities.

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(1) Natural or industrial fruits hanging from branches or

standing upon roots at the time when the usufruct begins, shall

belong to the usufructuary, without prejudice to any portion which

may be due to the tenant under a metayer lease.

(2) Such fruits as are hanging from branches or standing upon

roots at the time when the usufruct terminates, shall belong to the

owner, without prejudice to any portion which may be due to the

tenant under a metayer lease, and to any compensation which may

be due to the usufructuary or his heirs for their cultivation.

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Civil fruits shall be deemed to be earned day by day, and

shall belong to the usufructuary in proportion to the duration of his

usufruct.

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The alienation fines in emphyteutical grants shall belong

to the usufructuary.

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The usufructuary of a life annuity is entitled to receive the

payments which fall due from day to day during his usufruct; but he

is bound to restore any surplus which he may have received in

advance.

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If the usufruct includes things which, without being

consumed at once, are subject to gradual deterioration by use, the

usufructuary has the right to make use of them for the purpose for

which they are intended, and he is only bound to restore them, at

the end of the usufruct, in the condition in which they may be,

provided they have not been damaged through his malice or

negligence.

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Fruit trees that die, and those that are uprooted or broken

by accident, belong to the usufructuary, subject to his obligation of

replacing them by others.

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A usufructuary may assign the enjoyment of his right

whether gratuitously or for valuable consideration.

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A lease of the property shall continue to be operative even

after the termination of the usufruct, provided such lease shall have

been made on fair conditions and for a period not exceeding eight

years, in the case of rural property, or four years, in the case of

urban property, or an ordinary period according to usage, in the

case of movable property, or any period shorter than any of the said

periods respectively in the case of property the letting of which for

a period exceeding such shorter period is prohibited.

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The usufructuary may also sell the fruits that are pending;

and in such case, if the usufruct terminates before the fruits are

gathered, the sale shall continue to be operative, and the owner is

entitled to receive the price of such fruits as have not yet been

gathered

Provided that the owner shall have no action against the buyer

who may have paid the price of such fruits to the usufructuary

before the termination of the usufruct.

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The usufructuary is entitled to enjoy, in the same manner

as the owner himself, any right of easement attached to the

tenement subject to his usufruct, and generally all the rights which

the owner might enjoy.

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The usufructuary is also entitled to the enjoyment of any

stone-quarry which is already opened and being worked at the time

the right to the usufruct vests in him; he may not, however, open

new quarries.

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The usufructuary shall have no right to any treasure-trove

which may be found during the usufruct, saving the portion thereof

t o w h i c h h e m a y b e e n t i t l e d , a c c o r d i n g t o l a w, f o r h a v i n g

discovered it.

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The owner may not by his own act or in any other manner

whatsoever prejudice the rights of the usufructuary.

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(1) The usufructuary cannot, at the termination of the

usufruct, claim any compensation for the improvements of any kind

which he may have executed, even though the value of the thing

may have been considerably increased thereby.

(2) Any such improvements, however, may be taken into

consideration in the assessment of any damages for which the

usufructuary may be liable.

(3) Where no set-off arises under sub-article (2) the

usufructuary may take away those improvements which may be

removed with profit to himself, and without dam age to the

tenement, unless the owner prefers to retain them, on payment to

the usufructuary of a sum corresponding to the profit which the

latter might obtain by removing them from the tenement.

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It shall be competent to the usufructuary to bring any real

action competent by law to the owner.

§ II. O F THE O BLIGATIONS OF THE U SUFRUCTUARY

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(1) The usufructuary takes the things subject to the

usufruct in the condition in which they are at the time the usufruct

vests in him.

(2) At the termination of the usufruct, he shall restore them in

the condition in which they are at that time, saving his liability for

any deterioration which may have occurred through his negligence.

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The usufructuary may not commence to exercise his rights

over the things subject to the usufruct before he has made up an

inventory of such things, containing a description of the movables

together with the value thereof, and of the state of the immovables,

unless such inventory is dispensed with in the act creating the

usufruct.

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(1) The inventory shall be made up in the presence of the

owner, or after his having been called upon to attend even by means

of a judicial letter.

(2) It must be made by a public deed unless in the act creating

the usufruct power has been given for it to be made by means of a

private writing, and the owner consents that it be so made.

(3) Unless otherwise provided in the act creating the usufruct,

the expenses of the inventory shall be borne by the usufructuary.

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(1) It shall likewise be unlawful for the usufructuary,

unless he has been exempted by the act creating the usufruct, to

commence to exercise his rights over the things subject to the

usufruct before he has given security that he will enjoy the things

so subject as a bonus paterfamilias, that he will restore the

movables, refund the values of the things mentioned in article 329,

a n d m a ke go o d a ny d a m a ge t h a t m i gh t ha p pe n t h r ou g h h i s

negligence whether to the movables or to the immovables.

(2) The sum of the security, for the purposes of the hypothecary

registration, shall be regulated by the amount of the capitals that

are to be delivered to the usufructuary or that may be restored to

him during the usufruct, by the value of the movables, and by the

cost of such repairs in the immovables as may probably be required

during a period of five years and as are, according to law, at the

charge of the usufructuary.

(3) It shall be lawful for the court, according to circumstances,

to fix a lesser sum; and in such case, should the sum of the security

be spent or become insufficient before the termination of the

usufruct, the usufructuary shall be bound to give a further security,

and, in default, the provisions of article 355 shall apply.

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The following persons, however, are not bound to give

security

(a) those whose usufruct derives from the law;

(b) the vendor or the donor who has retained the usufruct

for himself;

(c) the usufructuary of things which are, or are to be,

administered by others.

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The owner may demand the security, where required,

either before or within one year after the usufructuary shall have

commenced to exercise his rights over the things subject to the

usufruct; after the expiration of the said year, it shall not be lawful

for the owner to demand the security unless he proves that the

condition or the conduct of the usufructuary has so changed that the

fulfilment of his obligations is thereby endangered.

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If the usufructuary fails to give security, where required,

within the time fixed by the court, the court shall, upon the demand

of the owner, appoint a competent person to administer the things

subject to the usufruct, in the interest of both the owner and the

usufructuary.

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The administrator shall sell the movables, investing at

interest the proceeds thereof; he shall likewise invest any other sum

of money included in the estate or which may be derived from the

return of capitals during the usufruct.

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(1) The administrator may, with the consent of the owner

and the usufructuary, deviate from the rule laid down in the last

preceding article.

356. (2) The court may also, on good cause being shown, upon the

demand of the owner or the usufructuary, dispense with the sale of

the movables, or order that the moneys be invested otherwise than

as laid down in the last preceding article, provided this can be done

without prejudice to the interests of the defendant.

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If the usufructuary declares on oath that he has been

unable to find security, the court may order that an urban tenement

and the necessary furniture for the habitation and the personal use

of himself and his family be delivered to him, without security,

subject to the obligation of restoring them at the termination of the

usufruct.

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(1) The administrator shall yearly render an account of

his administration to the usufructuary, and pay the balance to him.

(2) At the termination of the administration, the administrator

shall render an account both to the owner and to the usufructuary.

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The administrator may at any time be removed for just

cause, upon the demand either of the owner or of the usufructuary.

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The usufructuary may at any time give security and take

over the administration of the property.

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Delay in giving security shall in no case deprive the

usufructuary of the fruits to which he may be entitled: such fruits

are due to him from the time of the vesting of the right to the

usufruct.

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The usufructuary is only liable for ordinary repairs.

Extraordinary repairs shall be at the charge of the owner, unless

they have been occasioned by the non-execution of the ordinary

repairs, including those that have been required at the

commencement of the usufruct, in which case the usufructuary

shall be liable therefor.

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The repairs to walls and vaults, the replacing of beams,

and the entire renewal of the roof, staircase, or pavement of any

part of a building, are extraordinary repairs.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) No action shall lie in favour of the usufructuary to

compel the owner to carry out the repairs which are at his charge;

but, if the owner refuses to carry out such repairs, it shall be lawful

for the usufructuary to demand that he be authorized by the court to

e ff e c t s u c h r e p a i r s , a n d t o r e c o v e r f r o m t h e o w n e r, a t t h e

termination of the usufruct, the amount of the expenses incurred,

without interest, provided the utility of the repairs subsists at the

time of the termination of the usufruct

Provided the usufructuary shall be entitled to recover only the

value of such repairs as determined by means of a valuation, regard

being had to the time of the demand, if he fails to give to the owner

an account of the expenses incurred by him together with the

respective vouchers within six months from the day on which the

repairs shall have been completed.

(2) The account shall be considered as accepted by the owner,

if he shall not, within two months, declare his intention to contest

it.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) If the owner consents to carry out the extraordinary

repairs, he shall be entitled to recover from the usufructuary, during

the continuance of the usufruct, the interest on the amount of the

expenses which he shall prove to have incurred.

(2) The said interest shall run from the day on which the

a c c ou n t o f s u c h ex pe ns e s s ha ll ha ve b e e n a p p ro v e d b y t h e

usufructuary, or by the court upon a sworn application issued

against the usufructuary.

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(1) The provisions of the last two preceding articles shall

likewise apply in the case where a building or a part of a building

constituting an accessory necessary for the enjoyment of the

tenement subject to the usufruct, or an accessory part of the

building constituting the principal subject of the usufruct, falls

down through age or by a fortuitous event.

(2) For determining whether the part which has fallen off the

building which constitutes the principal subject of the usufruct, is

an accessory part, regard shall be had not only to the destination of

such part, but also to the expense required for reconstructing such

part as against the expense which would be required for the

reconstruction of the whole building.

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The usufructuary cannot prevent the owner from carrying

out, in the manner least inconvenient to the usufructuary, the

repairs and works referred to in the last three preceding articles.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The expense for the whitewashing of a building, or

the cleansing of cisterns or sinks, when ordered by the Police in the

c a s e s p r o v i d e d f o r b y l a w, s h a l l b e a t t h e c h a r g e o f t h e

usufructuary.

(2) The expense for the construction of cisterns or sinks, or for

communicating sinks with the main sewer or with some other

outlet, as well as the expense for the demolition of buildings which

are in a ruinous state, shall be borne by the owner; and if the

usufructuary is compelled to carry out such works, he shall have a

remedy against the owner.

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The usufructuary is bound to pay the ground-rent and all

other annual charges upon the tenement.

Laws of Malta — Chapter 16 — CIVIL CODE

The usufructuary of one or more particular tenements is

not bound to pay the debts for which any of such tenements may be

hypothecated, nor is he bound to pay any annuity with which such

tenements stand charged; and if he is compelled to pay, he may

claim relief against the owner.

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(1) The usufructuary of an entire estate, or of a portion of

an estate, is bound to pay, in proportion to his enjoyment, and

without any right of recovery, any maintenance allowances, any

perpetual or life annuity, and any interest on debts to which the

estate may be liable.

(2) Where any capital has to be paid, if the usufructuary is

willing to advance the amount, such amount shall be returned to

him by the owner, without any interest, at the end of the usufruct.

(3) If the usufructuary is not willing to make such advance, the

owner may effect the payment either with his own money, in which

case the usufructuary shall pay to him interest thereon during the

continuance of the usufruct, or by causing a portion of the property

subject to the usufruct to be sold, to the extent of the sum due.

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(1) The costs of lawsuits relating to the usufruct

exclusively shall be borne by the usufructuary.

(2) The costs of lawsuits relating to the ownership exclusively

are at the charge of the owner.

(3) The costs of lawsuits concerning both the usufruct and the

ownership shall be borne by the owner; but the usufructuary shall

pay to the owner the interest thereon during the usufruct.

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The usufructuary is bound, under pain of damages, to

notify the owner, without delay, of any encroachment or other act

committed by a third party to the prejudice of the rights of the

owner.

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Where the subject of the usufruct is one or more animals,

not forming a herd, and such animals perish without the fault of the

usufructuary, he shall only be bound to account to the owner for the

skins or their value.

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(1) The same rule shall apply where the subject of the

usufruct is a herd, and the whole herd perishes without the fault of

the usufructuary.

(2) Where, however, the herd does not perish entirely, the

usufructuary shall be bound to replace the heads which have

perished, but not beyond the number of the animals born since the

commencement of the usufruct and existing in his possession and

of those born after the herd commenced to be deficient in its

original number.

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(1) Where the subject of the usufruct is a ship and the

usufructuary has failed to insure her, he shall be liable for the loss

of the ship and for average.

(2) If the ship was insured, the usufructuary is discharged, to

the extent of the insurance, by assigning to the owner his rights of

action against the insurers, the premium remaining payable by the

usufructuary.

§ III. O F THE M ANNER IN WHICH U SUFRUCT T ERMINATES

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Usufruct terminates -

(a) by the death of the usufructuary;

(b) by the expiration of the time for which it was

constituted;

(c) by the merger or reunion in one and the same person of

the two capacities of usufructuary and owner;

(d) by non-user of the right during thirty years;

(e) by the total loss of the subject of the usufruct.

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(1) Usufruct may also terminate by reason of the

wrongful use which the usufructuary makes of his right, either by

causing injury to the tenements, or by suffering them to run into

ruin for want of ordinary repairs.

(2) In any such case the court may, according to the gravity of

the circumstances, instead of ordering the absolute termination of

the usufruct, either appoint an administrator, or order that the

property be returned to the owner, subject to the condition,

however, of paying annually to the usufructuary, or to those

claiming under him, a fixed sum during the continuance of the

usufruct.

(3) The usufructuary, as well as any of his creditors, may

prevent the termination of the usufruct, the appointment of an

administrator, or the return of the property as aforesaid, by offering

to carry out the necessary repairs, and by giving security for the

performance of this obligation within a time to be fixed by the

court, provided the offer be made and the security given before

judgment is delivered on the demand of the owner, or within fifteen

days from the day on which the judgment has become a res

judicata.

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(1) The duration of a usufruct constituted in favour of a

body-corporate, cannot exceed thirty years; and if the usufruct is

granted without any limitation of time, or for a time exceeding

thirty years, its duration shall be limited to thirty years.

(2)

When a right of usufruct is settled under trusts in favour of

a trustee, including a corporate trustee, or is endowed to a private

foundation for the benefit of beneficiaries who are natural persons,

for the purposes of this article, the usufruct shall be considered as

being constituted in favour of the beneficiaries who are named and

who have a right to enjoy the property and, unless expressly stated

otherwise, shall operate for the lifetime of such beneficiaries.

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Where the usufruct is granted until a third party shall

attain a given age, it shall last for all that time, even if the third

party dies before attaining that age.

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Where the usufruct is constituted in favour of two or more

persons conjointly, in terms of articles 738 and 739, it shall only

terminate at the death of the person last surviving, and the portion

of any predeceased person shall by accretion vest in the persons

surviving.

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The sale of the thing subject to the usufruct shall not

operate so as to alter in any way the right of the usufructuary; and

he shall continue in the enjoyment of his usufruct, unless he shall

have waived his right thereto.

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The creditors of the usufructuary may sue for a declaration

of nullity of any waiver of the usufruct which the usufructuary may

have made to their prejudice.

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Where only a part of the thing subject to the usufruct

perishes, the usufruct shall continue to be operative as to the

remainder.

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(1) Where the only subject of the usufruct is a building,

and such building falls down through age or is destroyed by a

fortuitous event, the usufructuary shall not be entitled to enjoy

either the soil or the materials.

(2) Where, however, the usufruct was constituted over a

tenement of which such building was only a part, the usufructuary

shall be entitled to enjoy the soil, and he may use the materials

either in the reconstruction of the fallen building or in the repair of

other parts of the tenement subject to the usufruct.

(3) In each of the aforesaid cases, if the building is not

destroyed, or does not fall down except in part, the usufructuary

shall retain the right to enjoy the soil and the materials.

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Where the subject of the usufruct is a ship, and the ship is

in such condition as to be beyond repair, the usufruct terminates.

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The usufruct of an annuity or of a debt does not terminate

on the repayment of the capital; the usufructuary may re-invest

such capital or, as the case may be, demand that it be re-invested to

his profit.

Sub-title II

O F U SE AND H ABITATION

Laws of Malta — Chapter 16 — CIVIL CODE

The rights of use and habitation are acquired and lost in

the same manner as the right of usufruct.

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The rights of use and habitation may not be created by the

owner otherwise than by a public deed, and they shall not be

operative as against third parties before the deed is registered in the

Public Registry, upon the demand of any of the interested parties,

or of the notary before whom the deed was executed. The note for

the registration of the deed shall be drawn up as provided in sub-

article (2) of article 330.

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Where the extent of the right of use or of habitation is not

fixed in the deed creating such right, the rules laid down in the

following articles shall apply.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Use is the real right of a person of making use of a

thing belonging to another, or of taking the fruits thereof, but only

to the extent of his own needs and those of his family.

(2) The right of use of a house is the same as the right of

habitation.

(3) The right of use of things which are consumed by use is

considered as usufruct.

Laws of Malta — Chapter 16 — CIVIL CODE

Habitation is the real right of a person to live with his

family and according to his condition in a house belonging to

another.

Laws of Malta — Chapter 16 — CIVIL CODE

For the purposes of the last two preceding articles, the

word "family" shall also include the children born since the

commencement of the right of use or habitation, even though the

grantee was not married at the time of the commencement of such

right, as well as acknowledged illegitimate children, adopted

children and servants.

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(1) The grantee of a right of use or habitation shall make

up an inventory and give security as provided in the case of

usufruct.

(2) The court may, according to circumstances, exempt the

grantee from giving security.

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The grantee of a right of use or habitation shall in the

enjoyment thereof act as a bonus paterfamilias.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where a person having the right of use of a tenement,

takes all its fruits, or, having the right of habitation, occupies the

whole house, he is bound to pay the ground-rent and all other

a n n u a l c h a rge s o n t he t e n e m en t , t o d e f r a y t he e x p e ns e s o f

cultivation, and to make the ordinary repairs in the same manner as

a usufructuary.

(2) Where, however, he takes only a part of the fruits, or

occupies only a part of the house, he contributes thereto in

proportion to what he enjoys.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where the ordinary quantity of the fruits of the

tenement does not exceed the quantity which is necessary for the

person having the use of it, such person may demand that the

tenement be delivered to him.

(2) Where, however, only a portion of the fruits is necessary for

such person, he shall only be entitled to demand that portion of the

fruits in kind; and in such case, the administration of the tenement

shall remain vested in the owner, and the obligation of giving

security and of making the inventory will not arise.

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The rights of use and habitation may not be assigned or

leased, and are not subject to the debts of the grantee.

Title IV

O F P RAEDIAL E ASEMENTS

G ENERAL P ROVISIONS

Laws of Malta — Chapter 16 — CIVIL CODE

(1) An easement is a right established for the advantage

of a tenement over another tenement belonging to another person,

for the purpose of making use of such other tenement or of

restraining the owner from the free use thereof.

(2) The tenement subjected to the easement is called the

servient tenement; and the tenement in favour of which the

easement is created is called the dominant tenement.

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Easements are created either by law or by act of man.

Sub-title I

E ASEMENTS C REATED BY L AW

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(1) Easements created by law for purposes of public

utility are established by special laws or regulations.

(2) Easements are also created by law for private utility; and

such are those established in the following provisions of this sub-

title.

§ I. E ASEMENTS ARISING FROM THE S ITUATION OF P ROPERTY

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Tenements at a lower level are subject in regard to

tenements at a higher level to receive such waters and materials as

flow or fall naturally therefrom without the agency of man.

(2) It shall not be lawful for the owner of the lower tenement to

do anything which may prevent such flow or fall.

(3) Nor shall it be lawful for the owner of the higher tenement

to do anything whereby the easement of the lower tenement is

rendered more burdensome.

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Whosoever has a spring within his tenement may make use

of it as he pleases, saving any right which the owner of a lower

tenement may have acquired by title or by prescription.

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(1) The owner of the higher tenement may cause the

water which runs through the public road to be led into his own

tenement, in preference to the owner of the lower tenement.

(2) In the case of owners of tenements placed on the same

level, each of such owners may cause the water which runs on that

half of the road, which is contiguous to his tenement, to be led into

such tenement.

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The provisions of the last preceding article shall not

apply in the case where one of the owners requires the water for the

use of man, or for watering animals or for watering trees which are

ordinarily watered; in any such case the right of preference over

others who require the water for other uses belongs -

(a) to the person who requires the water for the use of

man;

(b) to the person who requires it for watering animals;

(c) to the person who requires it for watering trees.

§ II. O F W ALLS AND D ITCHES WHICH SEPARATE N EIGHBOURING

T ENEMENTS

Laws of Malta — Chapter 16 — CIVIL CODE

A wall which serves to separate two buildings or a

building from a tenement of a different nature must have a

thickness of not less than thirty-eight centimetres.

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A party-wall between two courtyards, gardens or fields,

may be built of loose stones, but must be -

(a) three and one-half metres high, if it is between two

courtyards, or between two gardens in which there are

chiefly orange or lemon trees;

(b) two metres and forty centimetres high, if it is between

two gardens in which there are chiefly trees other than

those mentioned above; and

(c) one and one-half metres high, if it is between two

fields.

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(1) In the absence of a mark or other proof to the

contrary, a wall which serves to separate two buildings is presumed

to be common up to the top, and, where such buildings have not the

same height, up to one metre and eighty centimetres from the point

at which the difference in height begins.

(2) The part of the wall above one metre and eighty centimetres

from the height of the lower building, is presumed to belong to the

owner of the higher building.

(3) Where there is a building on one side, and a courtyard,

garden or field on the other side, the wall is presumed to belong

entirely to the owner of the building.

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(1) A dividing wall between courtyards, gardens, or

fields, shall also be presumed to be common, in the absence of a

mark or other proof to the contrary.

(2) Where the wall separates courtyards, gardens or fields,

placed the one at a higher level than the other, the part of the wall

which, having regard to the lower tenement, exceeds the height

respectively prescribed in article 408 is presumed to belong to the

owner of the higher tenement.

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(1) The repairs to a common wall or its reconstruction

shall be at the charge of all those who have a right thereto in

proportion to the right of each.

(2) Nevertheless, every co-owner of a wall may relieve himself

of the obligation of contributing to the expense of the repairs to the

said wall or of its reconstruction by waiving his right of co-

ownership, provided the common wall does not support a building

belonging to him.

(3) Such waiver, where competent, shall not relieve the party

making it of his liability for such repairs or reconstruction as may

have been occasioned by him.

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Where a common wall supports a building which the

owner wishes to demolish, he may not release himself from his

liability for the repairs or reconstruction of the wall by waiving his

right of co-ownership, unless he carries out for the first time such

repairs and works as are necessary so as to avoid causing to the

neighbour any damage by the demolition of the building.

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(1) Every co-owner erecting a building may have it lean

against the common wall and insert therein beams up to half the

thickness of such wall.

(2)

He may also indent his own wall into the common wall.

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Every co-owner may raise the height of a common wall,

but he shall be liable for the expenses necessary -

(a) for raising the height of the wall;

(b) for keeping in good repair the part raised above the

height of the common wall;

(c) for carrying out such works as may be necessary for

the support of the additional weight resulting from the

raising of the wall, so that the stability of the wall will

not be impaired.

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Where the common wall is not in a condition to sustain the

additional height, the person desiring to raise its height must have

it entirely reconstructed at his expense, and the additional thickness

must be taken on his own side.

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In each of the cases mentioned in the last two preceding

articles, the party raising the height of the wall is moreover bound

to make good to his neighbour any damage which the latter may

suffer in consequence of the raising of the wall or the

reconstruction.

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The neighbour who has not contributed to the raising of

the height of a common wall may acquire co-ownership of the

additional height by paying one-half of the cost thereof and the

value of half the land used for the additional thickness, if any.

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(1) Every owner may also make common, in whole or in

part, a wall contiguous to his tenement by reimbursing to the owner

of the wall one-half of its total value, or one-half of the value of

that portion which he desires to make common, and one-half of the

value of the land on which the wall is built, and by carrying out

such works as may be necessary to avoid causing damage to his

neighbour.

(2) The provisions of this article shall not apply in the case of

buildings destined for public use.

Laws of Malta — Chapter 16 — CIVIL CODE

It shall not be lawful for one of the neighbours -

(a) to make, without the consent of the other neighbour

any cavity in the body of a common wall;

(b) to cause any new work to be affixed to or to lean

against a common wall, without the consent of the

other neighbour, or, in case of his refusal, without

having first determined by means of experts the

necessary measures to be taken in order that the new

work shall not injuriously affect the rights of the other

neighbour;

(c) to deposit manure or other corrosive or damp

substance in such a manner as to be in contact with the

common wall;

(d) to heap earth or other matter against a common wall

without taking the necessary precautions in order to

prevent such heaps from causing, by pressure or

otherwise, damage to the other neighbour.

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Any person may compel his neighbour to contribute to the

construction or repair of walls separating courtyards, gardens, or

fields, up to the height specified in article 408, regard being had to

the nature and level of the tenement of the defendant.

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Where a wall separates two tenements, one of which is at a

higher level than the other, the owner of the higher tenement shall

bear the whole expense of the construction and repair of the wall up

to the level of his own tenement: the portion of the wall from that

level up to the height specified in article 408 shall be constructed

and repaired at joint expense.

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Saving the provisions of article 418, where, in the cases

referred to in the last two preceding articles, a neighbour is

unwilling to contribute to the expense of construction or repair of

the wall, he may release himself therefrom by giving up his half of

the land on which the party-wall is to be built, and waiving his right

of co-ownership of such wall.

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Where the several storeys or other parts of a building

belong to different owners, the contribution of each of the owners

to the expense of the repairs or reconstruction which may be

required shall be in proportion to the benefit which the respective

part of the building derives from such repairs or reconstruction.

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Where a common wall or a house is reconstructed, any

active or passive easement shall be maintained also with regard to

the new wall or house, provided such easement is not rendered

m o r e b u r d e n s o m e , a nd s uc h r ec o n s t r u c t i o n i s m a d e b e f o r e

prescription has been acquired.

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It shall not be lawful for one of the neighbours without the

consent of the other to make in the party-wall any window or other

opening.

Laws of Malta — Chapter 16 — CIVIL CODE

When the storeys of a house belong to different owners,

each of such owners may, in his own storey, make, in the external

wall, a balcony, window, door or other opening, provided the

stability of such wall is not affected thereby.

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(1) The person in whose building there are stairs leading

to the roof, is bound to raise at his own expense the party-wall to

the extent of one metre and eighty centimetres above the level of

the roof.

(2) The portion of the wall above the level of the roof must be

of the same thickness as the party-wall below such level.

(3) Where both neighbours have stairs leading to their

respective roofs, each of them may compel the other to contribute

half the expense necessary for raising the height of the party-wall

as aforesaid.

Laws of Malta — Chapter 16 — CIVIL CODE

Each of the neighbours is bound to carry out in his own

tenement such works as may be necessary to prevent any damage

which may be caused to the party-wall by the cisterns or sinks

existing in his tenement or by any flow of water or filth.

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In the absence of any title or mark to the contrary, any

ditch between two tenements, if it is proved to be private property,

is presumed to be the common property of the owners of those

tenements.

Laws of Malta — Chapter 16 — CIVIL CODE

Where the earth excavated for the formation of the ditch,

or the refuse accumulated therein for a period of three years, is only

on one side of the ditch, this shall be an indication that the ditch is

not common, and the ditch is presumed to be the exclusive property

of the party on the side of whose tenement the earth or the

accumulated refuse is found.

Laws of Malta — Chapter 16 — CIVIL CODE

Where the ditch serves for the drainage of the lands of one

owner only, this shall be an indication that the ditch is not common.

Laws of Malta — Chapter 16 — CIVIL CODE

A common ditch shall be kept in repair at joint expense

Provided that it shall be lawful for any co-owner to relieve

himself of such obligation by waiving his right of co-ownership.

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The trees which are on the boundary-line between two

tenements shall, in the absence of proof to the contrary, be deemed

to be common; and each of the neighbours may demand that such

trees be uprooted or cut if he proves that the damage they may

cause to his tenement is greater than the benefit he himself may

derive therefrom.

§ III. O F D ISTANCES REQUIRED IN CERTAIN CASES

Laws of Malta — Chapter 16 — CIVIL CODE

Every person may construct any wall or building on the

boundary-line of his tenement, saving the right of the neighbour to

acquire co-ownership of the wall as provided in article 418.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Even where the construction is not made on the

boundary-line, the neighbour may, if a distance of at least one and

one-half metres has not been left, demand co-ownership of the

wall, and may build up to, and against such wall, on paying, besides

the value of half the wall, the value of the ground which he would

thus occupy, unless the owner of the ground prefers to extend his

building, at the same time, up to the boundary-line.

(2) If the neighbour does not wish to avail himself of such

power, he must construct his wall or building in such a manner that

there shall be a distance of three metres from the wall or building of

the other party.

(3) The same rule shall be observed in any other case where the

construction of the other party is at a distance of less than three

metres from the boundary.

(4) The mere raising of the height of a house or wall already

existing is deemed to be a new construction.

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The provisions of the last two preceding articles shall not

apply in the case of buildings destined for public use, or of walls

bordering on public squares or streets.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) It shall not be lawful for any person to plant in his

own tenement tall-stemmed trees at a distance of less than two

metres and forty centimetres, or other trees at a distance of less

than one metre and twenty centimetres from the boundary between

his tenement and that of his neighbour.

(2) Vines, shrubs, hedges, and all other dwarfed trees not

exceeding the height of two metres and ten centimetres, may be

planted at a distance of not less than forty-five centimetres from the

said boundary.

(3) The neighbour may, unless the period required for

prescription has elapsed, demand that trees planted at a lesser

distance, or which, notwithstanding the observance of the aforesaid

distance, are causing him damage, be uprooted at the expense of the

owner.

(4) The court, however, may grant to the owner of such trees

the option either to uproot them, or to cause ditches or other works

to be made at his expense sufficient to prevent all damage to the

tenement of his neighbour.

(5) The provisions of this article shall not apply in cases where

the adjoining tenements are separated by a wall, provided the

aforesaid trees, shrubs or plants are so kept as not to exceed the

height of the wall.

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(1) A person over whose tenement the branches of the

neighbour’s trees extend, may compel him to cut such branches,

and may gather the fruits hanging from them.

(2) Moreover, if the roots extend into his tenement, he may cut

them off himself.

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It shall not be lawful for any person to dig in his own

tenement, any well, cistern or sink, or to make any other excavation

for any purpose whatsoever at a distance of less than seventy-six

centimetres from the party-wall.

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(1) Notwithstanding the observance of the distance

prescribed in the last preceding article, whosoever makes any

excavation, shall be bound to make good any damage caused by

such excavation to his neighbour ’s building, provided such

building has been constructed according to the usages and the rules

of art prevailing at the time of its construction.

(2) Nevertheless, no liability for damages is incurred, if the

excavation is made at the distance which the court, upon the

demand of the party wishing to make the excavation, shall have

fixed, according to circumstances, or if such party has executed

such works as, according to circumstances, shall have been ordered

by the court so as to avoid causing any damage to the neighbour.

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(1) Any sink-pipe or any pipe for water dripping from the

roofs, or for water raised by means of a pump or other mechanical

device, shall be at a distance of at least one metre from the

boundary, to be measured from the nearest point of the external part

of such pipe.

(2) The observance of such distance is not required if the pipes

used are such as do not allow any dampness to penetrate into the

wall, or if other means are used fit to prevent the passage of any

such dampness.

(3) Nevertheless, if, notwithstanding the observance of the

distance prescribed under sub-article (1) of this article, or the use

of such pipes or means as are mentioned in sub-article (2) of this

article, damage is caused to the neighbour, the owner of the pipes

shall be bound to make, at his own expense, any other work that

may be necessary for preventing the continuance of the damage,

and, if necessary, even to remove the pipes to a greater distance.

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(1) Where a cistern extends under the tenement of the

neighbour, such neighbour may bore a hole and make use of the

water, subject to his obligation to refund to the owner of the

tenement in which the excavation of the cistern was commenced

one-half of the expense incurred.

(2) Each of the two neighbours may demand that the part of the

cistern which exists under his tenement be separated from that

existing under the other tenement by means of a wall to be

constructed and, when necessary, repaired at joint expense.

(3) Where, however, the part of the cistern existing under the

tenement of one of the neighbours is considerably larger than the

part existing under the tenement of the other, the court may,

according to circumstances, in ordering the separation, direct the

former to refund to the latter a proportionate part of the sum which

he may have paid for the excavation of the cistern.

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(1) It shall not be lawful for the owner of any building to

open windows at a distance of less than seventy-six centimetres

from the party-wall.

(2) In the case of balconies or other similar projections, the

distance prescribed under sub-article (1) of this article shall be

measured from the external line of that side of the balcony or other

projection, which is nearer to the party-wall, to the internal line of

such wall.

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(1) It shall not be lawful for any person to construct any

oven except at a distance of at least thirty centimetres from the

party-wall, and with a passage for air between the wall and the

oven.

(2) Kitchen-stoves shall be at a distance of at least fifteen

centimetres from the party-wall.

§ IV.O F E AVESDROP

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Every owner shall construct the roofs of his building in

such a manner that the rainwater shall not fall on the neighbouring

tenement.

§ V.O F R IGHT OF W AY AND OF W ATERCOURSE

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Every owner is bound to grant access to and a way over his

tenement, provided such access or way be necessary, for the

p urpo se of r epairing a wall or other work bel ongi ng t o hi s

neighbour or held in common.

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(1) Any owner whose tenement has no outlet to the public

road, may compel the owners of the neighbouring tenements to

allow him the necessary way, subject to the payment of an

indemnity proportionate to the damage which such way may cause.

(2) Such right of way shall be exercised over that part where it

will be least injurious to the person over whose tenement it is

allowed.

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Where the tenement has become enclosed on all sides in

consequence of a sale, exchange, or partition, the vendors, the

parties to the exchange, or the co-partitioners are bound to grant a

foot-way, horse-way or cart-way, as the case may be, without any

indemnity.

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Where the right of way granted as aforesaid shall, in

consequence of the opening of a new road, or of the incorporation

of the tenement with another tenement contiguous to the public

road, cease to be necessary, the owner of the servient tenement may

demand the discontinuance of such right of way on restitution of

the indemnity received or the cessation of the annual payment

agreed upon.

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(1) Any person who cannot receive water into his own

tenement from fountains or other deposits of public water, except

through rural tenements belonging to other persons, may compel

the owners of such tenements to grant him, in such manner as shall

least injuriously affect them, the right of watercourse, subject to the

payment of an indemnity proportionate to the damage.

(2) It shall not be lawful for such person to compel the said

owners to allow him to make new channels, if they grant to him

watercourse by means of the existing channels; in which case the

indemnity shall be determined having regard to the value of such

channels, and the expense necessary for their first repair, and the

person who makes use of them shall remain bound to contribute to

the expense of their upkeep as provided in article 452.

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The action for the payment of the indemnity under articles

447 and 450 is subject to prescription: and the right of way or of

watercourse may continue to be exercised, although the action for

the payment of the indemnity can no longer be maintained.

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Any person who is entitled to make use of the channels

made for the passage of water is bound to contribute to the

expenses for their necessary repairs, saving his right to relief,

where competent, against the persons through whose fault the

channels have been damaged.

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(1) Where the enjoyment of the way or the watercourse

can be had in or over two or more tenements belonging to different

owners, the easement shall be imposed on that tenement to the

owner of which it is least injurious.

(2) Where the easement will not affect one tenement more

injuriously than another, the easement shall be imposed on that

tenement where it shall be more convenient to the person

demanding it, and it shall not be lawful for such person to choose

another tenement without the consent of its owner.

Sub-title II

O F E ASEMENTS CREATED BY THE A CT OF M AN

§ I. O F THE D IFFERENT K INDS OF E ASEMENTS WHICH CAN BE

CREATED BY THE A CT OF M AN, AND OF THE MANNER IN WHICH

SUCH E ASEMENTS ARE C REATED

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It shall be lawful for owners to establish, in accordance

with article 400, any easement which is in no way contrary to

public policy.

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(1) Easements are continuous or discontinuous, apparent

or non-apparent.

(2) Continuous easements are those the enjoyment of which is

or may be continuous without the necessity of any actual

interference by m an: su ch as the easement of w atercourse,

eavesdrop, prospect and others of a like nature.

(3) Discontinuous easements are those the enjoyment of which

can only be had by the actual interference of man: such as the

easement of right of way, of drawing water, and others of a like

nature.

(4) Apparent easements are those the existence of which

appears from visible signs: such as a door, a window, or an

artificial watercourse.

(5) Non-apparent easements are those which have no visible

signs of their existence: such as the prohibition to build on a certain

land or to build above a specified height.

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(1) Easements are, moreover, affirmative or negative.

(2) Affirmative easements are those which consist in the right

of making use of the servient tenement.

(3) Negative easements are those which consist in the right of

restraining the owner of the servient tenement from the free use

thereof.

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Continuous and apparent easements may be created -

(a) by virtue of a title;

(b) by prescription, if the tenement over which such

easements are exercised may be acquired by

prescription;

(c) by the disposition of the owner of two tenements.

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The title creating an easement is null unless it results from

a public deed; and where the easement is created by a deed inter

vivos, the easement shall not be operative as regards third parties

before the deed is registered in the Public Registry as provided in

article 330, on the demand of any of the parties interested, or of the

notary receiving the deed.

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(1) The owner of a tenement may, without the consent of

the usufructuary, establish any easement over the tenement,

provided the right of usufruct is not in any way prejudiced thereby.

(2) With the consent of the usufructuary, the owner may

establish even an easement diminishing the right of usufruct.

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(1) An easement granted by one of the co-owners of an

undivided tenement, shall not be deemed to be established until the

other co-owners shall have also, jointly or separately, granted it.

(2) Any grant made under any title whatsoever by one of the

co-owners remains in abeyance until a like grant is made by all the

others.

(3) Nevertheless, any grant made by a co-owner, independently

of the other co-owners, shall operate so as to restrain not only the

grantor but also his successors, even if singular, or any person

claiming under him, from obstructing the exercise of the right so

granted.

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An easement granted by one of the co-owners over an

undivided tenement, shall be deemed to be fully established as soon

as the grantor becomes the sole owner of the tenement.

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(1) In order to acquire an easement by prescription,

possession for a period of not less than thirty years is necessary.

(2) If the servient tenement is subject to entail, or belongs to a

church or any other pious institution, the prescriptive period is

forty years.

(3) In the cases referred to in this article, the person pleading

prescription is not bound to produce a title, and no plea on the

ground of bad faith can be set up against him.

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(1) In the case of affirmative easements, possession to

found prescription commences from the day on which the owner of

the dominant tenement has commenced to exercise the right of

easement.

(2) In the case of negative easements, possession commences

from the day on which the owner of the dominant tenement, shall

have, by means of a judicial letter, protest, or other judicial act,

restrained the owner of the servient tenement from the free use

thereof.

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Where the easement is in respect of a flow of water issuing

from a tenement belonging to others, or from a spring existing in

such tenement, and consists in the right of preventing the diversion

of the water, any visible and permanent works which the owner of

the dominant tenement may have made in the servient tenement in

order to collect the water, or to facilitate its flow in his own

tenement, shall be equivalent to the restraint mentioned in the last

preceding article.

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Any easement which the emphyteuta, usufructuary or

tenant suffers to be exercised over the tenement, without any pre-

existing title, shall not prejudice the dominus or the owner of such

tenement, notwithstanding any length of time during which the

easement may have been exercised.

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The owner of a tenement subject, in virtue of an easement

constituted without title, to receive the rain-water falling on the

roofs of a neighbouring building, may, at any time, on payment of

an indemnity, compel the owner of such building to cause such

easement to cease.

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The owner of a building in which there is no cistern, who,

in virtue of an easement constituted without title, is obliged to

allow the rain-water falling on the roofs of that building to flow to

a neighbouring tenement, may, at any time, on payment of an

indemnity, cause such easement to cease if he has constructed in

such building a cistern for the collection of such rain-water.

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An easement is created by "the disposition of the owner of

two tenements" if it is proved that the two tenements, now divided,

belonged to the same owner, and it was such owner who placed or

left things in the state which gives rise to the easement.

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(1) Continuous non-apparent easements, and discontin-

uous easements, whether apparent or non-apparent, can only be

created by a title; they cannot be created by prescription or by the

disposition of the owner of two tenements.

(2) Nevertheless, the easement of right of way for the use of a

tenement may be acquired by the prescription of thirty years, if

such tenement has no other outlet to the public road; and any other

easement which, on the 11th February, 1870, was already acquired

under previous laws, may not be impeached.

§ II. O F THE MANNER IN WHICH E ASEMENTS ARE E XERCISED

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The creation of an easement shall be deemed to include the

granting of all that is necessary for the enjoyment of such easement

with the least possible damage to the servient tenement. Thus the

right of drawing water carries with it the right of way, and the right

to cause water to be led over another person’s tenement includes

the right of way along the sides of the channel in order to watch

over the flow of the water, and to clean the channel and make the

necessary repairs.

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Any person to whom an easement is competent may carry

o ut at h is e xpe nse a nd in su ch man ner as t o c ause as l itt le

inconvenience as possible to the owner of the servient tenement,

the works that are necessary for the exercise and preservation of the

easement.

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Where the owner of the servient tenement is bound, in the

terms of the title, to bear the expense necessary for the exercise or

preservation of the easement, such obligation shall remain attached

to that tenement, even though it passes into other hands

Provided that the possessor of such tenement may release himself

from such obligation by abandoning, in favour of the owner of the

dominant tenement, that part of the servient tenement over which

the easement is exercised.

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If a severance of the dominant tenement takes place, the

easement which attached to the tenement will continue to attach to

the several portions, without, however, increasing the burden on the

servient tenement. Thus, where the easement is that of right of way,

the owners of all the portions of the tenement so divided shall make

use of the same path.

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(1) The owner of the servient tenement cannot do

anything which tends to diminish the exercise of the easement or to

make such exercise more inconvenient. He may not alter the

condition of the tenement, nor may he assign for the exercise of the

easement any part of the tenement other than that over which it was

originally established.

(2) Nevertheless, if the exercise of the easement in or over the

part originally assigned has become more burdensome to the owner

of the servient tenement, or if such owner is thereby prevented

from carrying out works, repairs, or improvements in his tenement,

he may offer to the owner of the dominant tenement a part equally

convenient for the exercise of the easement, and the latter may not

refuse it.

(3) The part of the tenement assigned for the exercise of the

easement may likewise be changed upon the demand of the owner

of the dominant tenement, if he proves that such change will be of

c o n s i d e r a b l e a d v a n t a g e t o hi m , a n d w i l l c a u s e n o d a m a g e

whatsoever to the servient tenement.

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Any person having a right of easement shall exercise such

right in the terms of his title, and it shall not be lawful for such

person to make either in the servient or in the dominant tenement,

any alteration which may increase the burden on the servient

tenement.

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In case of doubt as to the extent of an easement, its

exercise shall be restricted to what is necessary, having regard to

the destination of the dominant tenement at the time the easement

was created and to the convenient use of such tenement, with the

least damage to the servient tenement.

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In the absence of an agreement, the owner or other person

making a grant of water from a spring or a channel is bound,

towards those who, under such grant, are entitled to make use of

such water, to carry out the works required to lead the water from

its source to the place from which the water is to be taken.

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The easement in respect of a flow of water, does not

deprive the owner of the servient tenement of his right of freely

using such water to his advantage.

§ III. O F THE MANNER IN WHICH E ASEMENTS ARE

E XTINGUISHED

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(1) An easement is extinguished when the things subject

thereto are in such a condition that it can no longer be exercised.

(2) Nevertheless, the easement will revive if the things are

restored in such a manner that it can be again exercised, unless a

period of time sufficient to raise a presumption of the

extinguishment of the easement under article 481 shall have

elapsed.

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(1) An easement is extinguished where the dominant and

the servient tenements become united in the ownership of one

person.

(2) Where, however, a visible sign of an easement exists, and

the owner disposes of one of the said tenements without there being

in the contract any declaration as to the easement, such easement

shall continue to be operative, actively or passively, in favour of, or

over, the tenement so alienated.

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(1) An easement is extinguished by non-user for the

period of forty years, in the case of property belonging to the

Government of Malta or to a church or other pious institution, and

of thirty years, in the case of any other property.

(2)

The provisions of this article shall not apply where the

non-user was due to the conditions referred to in article 479

provided the owner of the dominant tenement could not, according

to law, cause such conditions to cease.

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The periods of non-user referred to in the last preceding

article, shall begin to run, according to the different kinds of

easements, either from the date of the last exercise thereof, if the

easement is discontinuous, or from the date of the first act done in

contravention thereof, if the easement is continuous.

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In regard to a third party in possession of the servient

tenement, the easement shall be extinguished by the lapse of the

time required for the prescription of the ownership of the tenement

itself according to the provisions relating to prescription under

Title XXV of Part II of Book Second of this Code.

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The manner of enjoying an easement may be prescribed as

the easement itself.

Laws of Malta — Chapter 16 — CIVIL CODE

Where the dominant tenement belongs to two or more

persons in common, the use of the easement made by any one of the

co-owners shall operate so as to bar prescription with regard to all

the co-owners.

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(1) Where among the co-owners there is one against

whom prescription could not run, such fact shall operate so as to

preserve the right of all the others.

(2) Any act which interrupts prescription with regard to one of

the co-owners shall benefit also the others.

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Where two buildings which belonged to one owner, are

about to be divided, it shall be competent to each of the co-

partitioners to demand, before proceeding to the partition, the

cessation of any easement between the two tenements, provided

this can be done without any serious prejudice.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Any easement acquired by the husband in favour of a

dotal tenement, or by an emphyteuta in favour of the emphyteutical

tenement, shall not be extinguished on the dissolution of the

marriage or on the termination of the emphyteusis.

(2) Easements, however, imposed over the said tenements by

the said persons shall be extinguished.

Title V

O F C OMMUNITY OF P ROPERTY

Sub-title I

O F THE N ATURE OF THE C OMMUNITY OF P ROPERTY, AND OF

THE R IGHTS OF THE C O-OWNERS DURING THE C OMMUNITY

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(1) Community of property exists where the ownership of

one and the same thing, or of one and the same right, is vested pro

indiviso in two or more persons.

(2) In the absence of any special agreement or provisions, the

community of property shall be governed by the following rules.

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(1) The shares of the co-owners shall, unless the contrary

is proved, be presumed to be equal.

(2) Every co-owner shall participate in the advantages and

burdens of the community in proportion to his share.

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Each of the co-owners is entitled to make use of the

common property, provided -

(a) that the use be made according to the destination of the

property as established by usage;

(b) that it be not made against the interest of the

community, or in such a manner as to prevent the other

co-owners from making use of the common property

according to their rights.

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Each of the co-owners may compel the others to share

with him the expense necessary for the preservation of the common

property, saving the right of any of such other co-owners to release

himself from his liability therefor by abandoning his right of co-

ownership.

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It shall not be lawful for any co-owner to effect any

alteration in the common property without the consent of the other

co-owners, even though he claims that such alteration is beneficial

to all.

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(1) Where the co-owners fail to agree, the court shall give

the necessary directions as to the management and better enjoyment

of the common property, and may appoint an administrator, even

from among the co-owners themselves.

(2) The court shall give effect to the opinion of the majority,

regard being had to the total number of the co-owners, unless the

dissentient co-owners show they will be prejudiced thereby.

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(1) Each co-owner has the full ownership of his share and

of the profits or fruits thereof.

(2) He may freely alienate, assign, or hypothecate such share,

and may also, subject to the provisions of article 912, substitute for

himself another person in the enjoyment thereof, unless personal

rights are concerned

Provided that the effect of any alienation or hypothecation

shall be restricted to that portion which may come to the co-owner

on a partition.

(3) Where the heirs in an inheritance continue to hold in

common, property deriving from the succession for more than three

years and no action has been instituted before a court or other

tribunal for the partition of the property within three years from the

opening of the succession and the portions of the heirs in the said

in h er i t a nc e a r e t h e sa m e i n r e sp ec t of a ll t h e as se ts of t h e

inheritance, each co-owner shall be deemed to be co-owner of each

and every item of property so held in common

Provided that this sub-article shall not apply

(a) when property held in common is subject to any right

of habitation, use or of usufruct, for such time during

which such right is in force; or

(b) when the property held in common consists of

property which of its very kind has of necessity to be

kept indivisible; or

(c) when persons who are holding the property deriving

from the succession in common agree otherwise

Provided further that the period of three years referred to in

this sub-article shall commence to run together with, and shall be

deemed as one with, the period of three years referred to in article

495A(1).

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Except in cases of condominium or necessary

community of property, where co-ownership has lasted for more

than three years and none of the owners has instituted an action

before a court or other tribunal for the partition of the property held

in common, and the co-owners fail to agree with regard to the sale

of any particular property, the court shall if it is satisfied that none

of the dissident co-owners are seriously prejudiced thereby,

authorise the sale in accordance with the wish of the majority of co-

owners regard being had to the value of the shares held by each co-

owner.

(2) The request to the court shall be made by application which

shall be accompanied by a declaration of the owners who agree to

the sale as well as a prospectus showing the number and value of

the shares held by each of them as well as the terms and conditions

under which the sale is to take place. The application shall also

i nd ic a te t he da te on wh ic h t he co - ow ner s h ip a ro s e a nd t he

circumstances thereof.

(3) The application shall be served on the co-owners who do

not agree with the sale as well as on curators to be appointed by the

court to represent such of the co-owners who are unknown or who

cannot be traced. The registrar shall cause a copy of the application

to be published in the Gazette and in one daily newspaper.

(4) A declaration that any co-owner is not known or cannot be

traced shall be confirmed on oath by one of the applicants.

(5) The other co-owners as well as the curators may within

twenty days from service upon them of the application, or in the

case of a co-owner who has not been served with the application

within twenty days from the last publication referred to in sub-

article (3), oppose the sale stating the serious prejudice that they or

the co-owners represented by them may suffer because of the sale.

(6) In assessing whether there will be serious prejudice to any

of the co-owners, the court shall take into consideration all relevant

factors including the value of the property and the price of the sale,

and may for this purpose order that the property be appraised in

accordance with the provisions of article 306 of the Code of

Organization and Civil Procedure.

(7) The court shall determine the application, and where it

determines that the sale is to take place, it shall determine the price

or other consideration for the sale and it shall further -

(a) determine the time, date and place, when and where

the transfer is to take place;

(b) where the sale is to be effected by a public deed,

appoint a notary to publish the deed;

(c) appoint a curator, even among the co-owners

themselves, to represent any of the co-owners who fail

to appear on the notarial deed or other instrument of

transfer.

(8) The court may, on an application by any party interested,

change the date, time or place where the transfer is to take place.

(9) If more than one co-owner opposes the transfer or where

the court rejects the application in terms of sub-article (7), the court

may, notwithstanding the other provisions of this article, order the

sale by licitation of the property in accordance with the provisions

of articles 521 and 522.

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(1) The period of three years stipulated in articles 495(3)

and 495A(1) shall apply in respect of all co-owned property to

which the said sub-articles apply which on or after the 1st April

2016 shall have been held in common by the co-owners thereof for

a period of at least three years.

(2) The periods of ten years previously provided for in articles

495(3) and 495A(1) (prior to their amendment) and of five years

previously provided for in article 495B (prior to its substitution)

respectively and as in force prior to the 1st April 2016 shall no

longer apply as from the 1st April 2016.

(3) Immovable property transferred on the basis of a court

decision given under article 494(1) and not being situated within a

land registration area for the purposes of the Land Registration Act

shall, notwithstanding the provisions of any other law, be deemed

to constitute a land registration area for the purposes of the said Act

and it shall be registered in the Land Registry by the Notary who

publishes the deed of transfer at the expense of the transferee.

Sub-title II

P ARTITION OF C OMMON P ROPERTY

Laws of Malta — Chapter 16 — CIVIL CODE

(1) No person can be compelled to remain in the

community of property with others, and each of the co-owners may,

at any time, notwithstanding any agreement to the contrary, demand

a partition, provided such partition has not been prohibited or

suspended by a will under the provisions of article 906.

(2) Nevertheless, an agreement to the effect that property shall

continue to be held in common for a fixed period not exceeding

five years is valid; and any agreement for a longer period, is null in

so far as it exceeds five years.

(3)

Any such agreement may be renewed.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Notwithstanding the prohibition or agreement

referred to in the last preceding article, it shall be lawful for the

court, if serious and urgent reasons so require, to order the

dissolution of the community of property, and any waiver of the

right to demand a partition in similar cases is null.

(2) Where any of the co-owners has, through his fault, given

cause to the existence of the reasons referred to in sub-article (1),

the court may, according to circumstances, in o rdering the

dissolution, condemn such co-owner in all damages.

Laws of Malta — Chapter 16 — CIVIL CODE

Partition may be demanded even though one of the co-

owners may have enjoyed separately a portion of the common

property, unless there has been a partition or a possession sufficient

to give rise to prescription.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) A partition of immovable property is null unless it is

made by a public deed.

(2) As to the effect of any such partition in regard to third

parties, and as to the registration of the deed of partition, the

provisions of article 330 shall apply.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Subject to the provisions of the last preceding article,

where all the co-owners are present and capable of alienating

property, the partition may be made in any manner and form they

may deem convenient.

(2) In the absence of an agreement to the contrary, the

following rules shall be observed, both in the partition of the bulk

of the property as well as in any sub-division which may be

necessary.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The property shall be appraised by experts chosen by

the parties, or appointed by the court as provided in the Code of

Organization and Civil Procedure.

(2) The experts shall state in their report, whether the property

can be conveniently divided without being injuriously affected,

and, in case the property can be so divided, the experts shall in the

same report determine each of the portions which may be made up

and the value thereof, regard being had, as far as it is practicable

without considerable damage, to the provisions contained in the

next following three articles.

Laws of Malta — Chapter 16 — CIVIL CODE

Each of the co-owners may claim his share of the property

in kind.

Laws of Malta — Chapter 16 — CIVIL CODE

A co-owner possessing property immovable by its nature

adjacent to any of the immovables in community about to be

divided, may demand that such immovables be assigned to him

upon a valuation, provided there be other immovables in

community out of which an approximately equal portion may be

assigned to each of the other co-partitioners.

Laws of Malta — Chapter 16 — CIVIL CODE

In forming and making up the shares, the dismemberment

of tenements or the creation of easements shall be avoided; and it

shall be sought to include in each share the same quantity of

movables, immovables, rights or claims of the same nature and

value.

Laws of Malta — Chapter 16 — CIVIL CODE

Any inequality of the shares in kind, where it cannot be

conveniently avoided, shall be set off by the payment of a sum of

money equal to the difference between the larger and the smaller

share.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) It shall be lawful for the court, according to

circumstances, to order, in lieu of the payment of the sum of money

mentioned in the last preceding article, the imposition of a rent-

charge on the larger share in favour of the smaller share, secured by

the hypothecation of one or more of the immovables included in

such larger share.

(2) For the purposes of sub-article (1), the experts shall, unless

exempted by the co-partitioners themselves, establish in their

report the amount of such rent-charge as may be required for

owelty of partition.

(3) The provisions of this article shall not apply unless the

inequality exceeds the sum of one hundred and sixteen euro and

forty-seven cents (116.47) and is greater than the value of one-

fourth part of the larger share.

Laws of Malta — Chapter 16 — CIVIL CODE

The provisions of the last preceding article shall also

apply where the immovables held in community cannot be divided

in such a manner as to include a portion thereof in each share, and,

in consequence, one of the shares will consist entirely of money or

other movables; in any such case it shall be lawful for the court,

according to circumstances, to order that the share which contains

no immovables be made up of a rent-charge on the immovables

included in the other shares.

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Nevertheless, the rent-charge imposed on any immovable

shall in no case be greater than the fifth part of the estimated annual

rental value of such immovable on lease.

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Where the experts, chosen or appointed to make the

valuation of the property, are not competent to make up the shares,

such shares shall be made up by one of the co-partitioners or by any

other person, if the choice is agreed upon by all, and if the party so

chosen accepts to act. Otherwise the shares shall be made up by a

person to be appointed by the court.

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(1) The shares shall be drawn by lot.

(2) Where, however, the shares of the co-partitioners are not

equal, the court shall determine whether the shares are to be drawn

by lot, or whether the partition is to be carried out by assignment in

whole or in part.

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(1) Where any of the co-owners is subject to tutorship or

curatorship, or is an absentee represented by a curator appointed by

the court, the partition is null unless it is made with the assistance

of the judge or magistrate of the court of voluntary jurisdiction.

(2)

The judge or magistrate shall countersign the draft deed.

(3) A partition made with the assistance of such judge or

magistrate cannot be impeached, even by the persons mentioned in

sub-article (1) of this article, on the ground of non-compliance with

the rules laid down in the foregoing articles.

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(1) Each of the co-partitioners shall, on completion of the

partition, be put in possession of the documents relating to the

things allotted to him, if such documents exist among the things

held in community.

(2) The documents relating to a thing which has been divided

shall be kept by the party having the greatest portion thereof,

subject to his obligation to show such documents, whenever

requested, to such of the co-partitioners as may be interested

therein.

(3) The documents relating generally to all the property

formerly held in community shall be delivered to the party chosen

by all the co-partitioners, or, failing their agreement, by the court,

as a depositary thereof, subject to his obligation to show such

documents, whenever requested, to any of the co-partitioners.

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As to the effects of a partition, the provisions contained in

articles 947 to 952 inclusive of this Code relating to co-heirs, shall

be applicable generally to co-partitioners.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where in a partition, or in any other act whereby the

community of property, whether m ovable or immovable, is

terminated, even though such act be designated as a sale, an

exchange or a compromise, or by any other name, the fair value of

the property allotted or assigned to one of the co-partitioners is,

having regard to the time of such partition or other act, less than

three-fourths of the fair value of the share to which such co-

partitioner was entitled, such co-partitioner shall be entitled to

demand from the other co-partitioner a supplement in money.

(2) No action for a supplement under sub-article (1) of this

article may be maintained where difficulties arisen between the co-

partitioners have been settled by a compromise, even if no suit had

been commenced in relation thereto; nor may such action be

maintained in the case of a sale of the right of co-ownership made

without fraud to one of the co-owners at his risk and peril by the

other co-owners or any of them.

(3) The action for demanding a supplement in money under

sub-article (1) of this article shall be barred by the lapse of two

years from the date of the partition or other act terminating the

community, and the provisions of sub-article (2) of article 1407

shall apply in respect of the running of such period of limitation.

(4) The mere omission from a partition of a thing held in

community shall only give rise to a supplementary partition.

Sub-title III

O F S ALE BY L ICITATION

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where common property cannot be divided

c o n v e n i e n t l y a n d w i t h o u t b e i n g i n j u r i o u s l y a ff e c t e d , a n d

compensation cannot be made with other common property of a

different nature but of equal value, it shall be sold by licitation for

the purpose of distributing the proceeds thereof.

(2) The same rule shall apply if, in a partition of things in

community, there are some which no one of the co-partitioners is

able or willing to take.

Laws of Malta — Chapter 16 — CIVIL CODE

Any of the co-owners, whatever his share of the property,

may demand the sale by licitation, where competent.

Laws of Malta — Chapter 16 — CIVIL CODE

It shall be lawful for each of the co-owners to demand that

strangers be invited by means of an advertisement to bid at the sale

by licitation, such advertisement being published in one or more

newspapers, at least six days before that fixed for the sale.

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(1) A sale by licitation which takes place with the consent

of all the co-owners, is not subject to any formality, and may be

made by means of any person and in whatsoever manner the co-

owners may agree upon; but in any such case there is no sale until

the highest bid has been accepted and, if the licitation is in respect

of immovable property, until a contract is made by means of a

public deed.

(2) The same rule shall apply where, although the sale by

licitation has been ordered by a judgment, the parties agree to carry

it out in a manner other than that established for judicial sales by

auction.

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The provisions of the last preceding article shall apply

even where any of the co-owners is subject to tutorship or

curatorship, or is an absentee represented by a curator appointed by

the court, provided the sale does not relate to immovable property,

or, if the sale relates to movable property, the value thereof does

not exceed sixty-nine euro and eighty-eight cents (69.88).

Laws of Malta — Chapter 16 — CIVIL CODE

Where the sale by licitation relates to immovable property,

or to movable property of a value exceeding the sum of sixty-nine

euro and eighty-eight cents (69.88), and any of the co-owners is

subject to tutorship or curatorship or is an absentee represented by

a curator appointed by the court, such sale shall be ineffectual if it

is not made under the authority of the court of voluntary or

contentious jurisdiction, as the case may be.

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(1) Where under the provisions of the last preceding

article the sale by licitation takes place under the authority of the

court, it shall be carried out according to the rules laid down for

judicial sales by auction, in so far as such rules are applicable,

unless the court deems it more beneficial for the parties interested

that it should be carried out otherwise.

(2)

In all cases, strangers shall be invited to bid.

(3) The adjudication made by the registrar shall be equivalent

to the deed of sale, even if the sale relates to immovable property.

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In case of sale of immovables by licitation, the provisions

relating generally to the sale of immovables shall apply with regard

to the registration of the contract or of the act of adjudication, in

the interest of third parties.

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* The provisions of articles 515, 516 and 517 shall also

apply to common property which is subject to any entail, in whole

or in part

Provided that the sale by.licitation shall not be operative unless it

is made under the authority of the competent court, and in any such

case the provisions of the last two preceding articles shall apply.

Title VI

O F P OSSESSION

Sub-title I

O F THE N ATURE OF P OSSESSION

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Possession is the detention of a corporeal thing or the

enjoyment of a right, the ownership of which may be acquired, and

which a person holds or exercises as his own.

(2) A person may possess by means of another who holds the

thing or exercises the right in the name of such person.

(3) A person who has the detention or custody of a thing but in

the name of another person, is called a holder.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) A person is in all cases presumed to possess in his

own behalf, and by virtue of a right of ownership, unless it is

proved that he has commenced his possession in the name of

another person.

(2) Where a person has commenced his possession in the name

of another person, he shall be presumed always to possess upon the

same title unless the contrary be proved.

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Acts which are merely facultative or of mere sufferance

cannot found the acquisition of possession.

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(1) In like manner, acts of violence or clandestine acts

cannot found the acquisition of possession.

(2) Nevertheless, possession may commence when the violence

or clandestinity ceases.

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Any person actually in possession who proves that he

formerly possessed shall, in the absence of proof to the contrary, be

presumed to have continued to possess during the intervening

period.

* See art. 2 of the Investment of Certain Moneys Ordinance (Cap. 26.)

Laws of Malta — Chapter 16 — CIVIL CODE

Actual possession shall not operate so as to raise a

presumption of former possession unless the possessor has a title;

in which case, in the absence of proof to the contrary, he shall be

presumed to have possessed since the date of the title.

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(1) Possession continues as of right in the person of a

successor by universal title.

(2) A successor by a singular title, whether gratuitous or

onerous, may conjoin his own possession with that of his

predecessor in order to claim and enjoy the effects thereof.

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(1) A person who, on probable grounds, believes that the

thing he possesses is his own, is a possessor in good faith.

(2) A person who knows or who ought from circumstances to

presume that the thing possessed by him belongs to others, is a

possessor in bad faith.

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Good faith is presumed, and the party alleging bad faith is

bound to prove it.

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Save as otherwise provided in this Code, the provisions of

the following articles of this title shall be observed with regard to

the rights and obligations arising from possession.

Sub-title II

O F THE R IGHTS OF THE P OSSESSOR IN CASE OF M OLESTATION

Laws of Malta — Chapter 16 — CIVIL CODE

Where any person, being in possession, of whatever kind,

of an immovable thing, or of a universitas of movables, is molested

in such possession, he may, within one year from the molestation,

demand that his possession be retained, provided he shall not have

usurped such possession from the defendant by violence or

clandestinely nor obtained it from him precariously.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where any person is by violence or clandestinely

despoiled of the possession, of whatever kind, or of the detention of

a movable or an immovable thing, he may, within two months from

the spoliation, bring an action against the author thereof demanding

that he be reinstated in his possession or retention, as provided in

article 791 of the Code of Organization and Civil Procedure.

(2) Such reinstatement shall be ordered by the court even

though the defendant be the owner of the thing of which the

plaintiff has been despoiled.

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The reinstatement in the case provided for in the last

preceding article shall not operate so as to bar the exercise of any

other possessory action competent to any possessor.

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In questions of possession in matters concerning

easements, the rights and obligations of the dominant and the

s e r v i e n t o w n e r s a n d o f a n y o t h e r p a r t y i n t er e s t e d s h a l l b e

determined by the mode of enjoyment during the preceding year,

or, where the easement is exercised at intervals of more than one

year, by the last user thereof.

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(1) Where a person has reason to apprehend that in

consequence of a new work undertaken by any other person either

in such other person’s own tenement or in the tenement of others,

damage may be caused to an immovable thing possessed by him, he

may bring an action demanding that such other person be restrained

from continuing such new work, provided this shall not have as yet

been completed and one year shall not have elapsed from the

commencement thereof.

(2) The court, after summarily taking cognizance of the facts of

the claim, may, according to circumstances, either restrain or allow

the continuation of such new work, ordering such security as it may

deem proper.

(3) Where the continuation of the work has been restrained,

such security shall be in respect of the payment of any damages

which may be caused by the suspension of the work, in case the

opposition to the continuation thereof shall prove to be groundless.

(4) Where the continuation of the work has been allowed, such

security shall be for the total or partial demolition of the work, and

for the payment of the damages which the plaintiff may suffer, in

case he obtains, notwithstanding that the work was allowed to be

continued, a final and absolute judgment in his favour.

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Where any person has reasonable cause to apprehend any

serious and impending damage to a tenement or other thing

possessed by him, from any building, tree or other thing, he may

bring an action demanding, according to circumstances, either that

the necessary steps be taken to obviate the danger, or that the

neighbour be ordered to give security for any damage the plaintiff

may suffer therefrom.

Sub-title III

O F THE R IGHTS AND O BLIGATIONS AS BETWEEN

THE P OSSESSOR AND THE O WNER

§ I. OF THE F RUITS OF THE T HING POSSESSED, OF THE

E XPENSES INCURRED IN CONNECTION THEREWITH AND

OF THE R IGHT OF R ETENTION

Laws of Malta — Chapter 16 — CIVIL CODE

A possessor in good faith acquires the fruits of the thing

possessed, even though such thing be an inheritance; and he is not

bound to restore except such fruits as he shall have collected, or, by

the exercise of the diligence of a bonus paterfamilias, could have

collected, after a judicial demand

Provided that he shall not be bound to restore the price of

unplucked or uncut fruits, received by him before the judicial

demand, even though, at the time of such demand, the fruits may be

as yet unplucked from the trees or uncut from the ground.

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A possessor in bad faith is bound to restore all the fruits

which he has collected, or, by the exercise of the diligence of a

bonus paterfamilias, could have collected from the day of his

unlawful occupation.

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(1) A possessor in good faith may demand from the

owner the reimbursement of the necessary expenses whether their

effect continues or not.

(2) As regards useful expenses, the owner is bound either to

refund to the possessor the cost of the work or, at his option, to pay

to him a sum corresponding to the enhanced value of the thing.

(3) The court may, according to circumstances, direct that the

refund of the expenses made on an immovable, be effected by the

owner by means of a rent-charge secured by the hypothecation of

the immovable, or in any other manner as to fully satisfy the debt

and which is at the same time less onerous to the debtor.

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(1) In relation to a possessor in bad faith, the owner has,

in respect of necessary expenses, and of useful expenses for

meliorations which cannot be removed, the same obligations as an

owner has in relation to a possessor in good faith, provided

possession of the thing shall not have been obtained by theft or

s o m e o t h e r o ff e n c e w h i c h d o e s n o t f a l l u n d e r t h e c l a s s o f

contraventions.

(2) As regards useful expenses for meliorations which can be

removed, the owner may elect either to retain such meliorations or

to compel the possessor to remove them.

(3) If the owner demands the removal of such meliorations, the

possessor shall remove them at his expense without any right to

indemnity, and he shall be bound to make good to the owner any

damage which the latter may have suffered.

(4) If the owner elects to retain the meliorations, he shall, at his

option, either refund to the possessor the cost thereof or pay to him

a sum corresponding to the enhanced value of the thing.

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With regard to decorative expenses the possessor, whether

in good or bad faith, shall only be entitled to take back the

adornments in kind, provided this be advantageous to the possessor

and not injurious to the thing, unless the owner desires to retain

such adornments, and pay to the possessor a sum corresponding to

the profit that the latter might make by taking them away.

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(1) Necessary expenses are those without which the thing

would have perished or deteriorated.

(2) Useful expenses are those which ameliorate the thing by

making it more convenient, or capable of yielding more fruit, but

the omission of which is not prejudicial to the thing.

(3) Decorative expenses are those which serve only to adorn

the thing, without rendering it more convenient or capable of

yielding more fruit, and which if omitted would not cause the thing

to deteriorate.

(4) Decorative expenses may, however, in certain cases, be

considered as useful expenses, regard being had to the condition of

the owner, or to the existence of particular circumstances which

may afford the owner an immediate opportunity of deriving profit

from such expenses.

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Any person who shall have obtained possession of the

thing by theft or any other offence, not being a mere contravention,

shall not be entitled to any indemnity for any kind of expenses, or

to remove any meliorations made on the thing; and he may be

compelled by the owner to remove at his expense, and without any

right to indemnity, such objects as may be removed, and also to

make good any damage which the owner may have suffered.

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The set-off of the fruits against the expenses mentioned in

the foregoing articles shall take place even with regard to the

possessor in good faith

Provided such possessor shall, besides the fruits which he is

bound to restore according to the provisions of article 540, be

bound to bring into account only the fruits which he shall have

collected during the five years preceding the judicial demand of the

owner.

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The possessor, whether in good or bad faith, shall not be

bound to restore, or to bring into account for the purposes of the

set-off mentioned in the last preceding article, the fruits of any

meliorations which, under the provisions of the foregoing articles,

he has the right to remove, or for which he is to be indemnified by

the owner, unless the owner agrees to pay to him interest on the

cost of such meliorations.

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(1) The expenses for the production or preservation of the

fruits of a thing are not comprised in those referred to in the

foregoing articles of this sub-title.

(2) Such expenses shall always be deducted from the said

fruits.

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Where under the provisions of the foregoing articles, a

possessor, whether in good or bad faith, is entitled to recover the

expenses made on a thing belonging to others, either by taking back

the subject of such expenses, or by the reimbursement of the said

expenses, he shall, saving the provisions of article 2079, be entitled

to retain the thing until he shall have obtained what is due to him,

provided his demand for the recovery of such expenses is made,

even orally, during the hearing of the action, before judgment is

delivered on the demand of the owner for the restoration of the

thing.

§ II. O F THE O BLIGATIONS OF THE P OSSESSOR WITH REGARD

TO THE RESTORATION OF THE T HING

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A possessor in good faith is bound to make good such

damage as, by his own act or otherwise, even before the judicial

demand of the owner, may have been caused to the thing, but only

to the extent of the benefit which he has derived from such damage.

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Where the thing possessed is an inheritance or a portion of

an inheritance, the possessor, even if in good faith, who has

alienated any hereditary thing, is, moreover, bound to restore, but

always to the extent of the benefit which he has derived from such

alienation, the value of such thing.

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For the purposes of the provisions of the last two

preceding articles, the possessor is deemed to have derived a

benefit from the said damage or alienation in each of the following

cases only

(a) if the subject of the benefit so derived is found, at the

time of the judicial demand, to exist separately from

the things belonging to the possessor;

(b) if, where the subject of such benefit has been

intermixed with things belonging to the possessor, his

estate is found, at the time of such demand, to have

been enhanced thereby;

(c) if, where the subject of such benefit has been

consumed by the possessor, such possessor has in

consequence saved his own things, and such saving

still exists

Provided that it shall be lawful for the possessor in any of the

foregoing cases to retain the subject of such benefit on paying to

the plaintiff the value of the things at the time he shall have

disposed thereof or their value at the time of the demand,

whichever is the greater.

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A possessor in good faith is not, even in the case of

possession of an inheritance, bound to restore the value of things

given, lost or destroyed without profit.

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The provisions of the last three preceding articles shall

apply to the possessor of any other universitas rerum.

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(1) A possessor in bad faith shall in all cases be bound to

restore all the things which he has wrongfully occupied.

(2) Where such possessor has, whether voluntarily or through

his own fault, ceased to possess any of such things, he shall be

bound to restore to the plaintiff any profit which he may have

derived therefrom or, at the option of the plaintiff, to pay to him the

value of the thing at the time of the cesser of possession or the

value thereof at the time of the demand, whichever is the greater,

notwithstanding that, in such case, he shall not have derived any

profit therefrom.

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A possessor in bad faith shall also be liable for all damage

which may have been occasioned by his own act as well as for that

occasioned by a fortuitous event unless, whatever the manner in

which he may have obtained possession of the thing, he shows that

the thing would have equally perished or deteriorated if it had been

in the possession of the owner.

§ III. O F THE P ARTICULAR E FFECTS OF THE P OSSESSION OF

M OVABLES

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(1) In the case of movables by nature, or securities to

bearer, possession shall produce in favour of third parties in good

faith the same effects as the title, saving, in regard to vessels, the

provisions of any other law.

(2) The provisions of this article shall not apply in the case of a

universitas of movables.

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(1) It shall, nevertheless, be lawful for any person who

has lost a thing, or has been robbed thereof, to recover it on

indemnifying the possessor.

(2) Such person may even recover the thing without any

obligation to indemnify the possessor if the latter has not obtained

the thing in good faith, under an onerous title, from a party who

was presumably the owner thereof or a person charged by the

owner to dispose of it.

PART II

O F THE M ODES OF ACQUIRING AND TRANSMITTING P ROPERTY

AND OTHER R IGHTS OVER OR RELATING TO T HINGS

G ENERAL P ROVISIONS

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Ownership and other rights over things, or relating to

things, may be acquired and transmitted by succession, or by virtue

of an agreement or by means of prescription.

(2) Ownership may also be acquired and transmitted by

occupancy or by accession.

Title I

O F O CCUPANCY

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Occupancy consists in taking possession of a

corporeal thing which is not, but can be, the property of any one,

with the intention of becoming the owner of it.

(2) The occupant shall acquire the ownership thereof, unless

the law provides otherwise.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The owner of a swarm of bees has the right to pursue

them o ver the t en em ent of any oth er person, subject to his

obligation of making good any damage caused to such tenement.

(2) Where the owner has not pursued the bees within ten days

to be reckoned from the day on which he became aware of the

tenement on which they had settled, or has discontinued the pursuit

for ten days, the possessor of such tenement shall be entitled to take

and retain them.

(3) The provisions of this article shall also apply to the owner

of domesticated animals; but such animals shall become the

property of the person who has taken and retained them, unless they

are claimed within thirty days to be reckoned from the day on

which the owner has had knowledge of the place in which such

animals were to be found.

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(1) Saving the provisions of the Cultural Heritage Act,

where a treasure trove is discovered in a tenement of another

person, such treasure trove if discovered by mere chance, shall

belong as to one-half to the finder, and as to the other half to the

owner of the tenement wherein it is found, and if discovered as a

result of searches made for the purpose, it shall belong entirely to

the owner of the tenement.

(2) The expression "treasure trove" means and includes any

movable thing, even though not precious, which is concealed or

buried, and of which no one can prove himself to be the owner.

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(1) Any person who finds a movable thing, not being a

treasure trove, is bound to restore it to its previous possessor, if

known: otherwise he is bound to deliver it without delay to the

Police.

(2)

The Commissioner of Police shall publish by means of a

notice in the Gazette a list of the movable things referred to in sub-

article (1) of this article, and shall re-publish such list, with the

exception of the things claimed by their owner, after three months

of the said notice.

(3) At the expiration of three months from the date of the

publication of the second notice, if the owner has not appeared to

claim the thing, such thing or, where circumstances have rendered

its sale expedient, the price thereof, shall belong to the finder.

(4) The owner or the finder, as the case may be, shall, on

withdrawing the thing or its price, pay any expenses which may

have been incurred.

(5) Moreover, the owner who withdraws the thing, shall pay to

the finder a reward to be regulated according to circumstances, and

not exceeding one-tenth part of the value of the thing found.

(6) If, within the lapse of six months of the first notice

published in the Gazette under sub-article (2) of this article, neither

the finder nor the owner claims the thing or the price thereof, such

thing or price, as the case may be, shall belong to the Government.

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(1) The provisions of the last preceding article shall not

apply to such things as are cast or have fallen into the sea, or are

thrown by the sea upon the shore, or to plants and herbs which

grow on the seashore, or in the bottom of the sea, except in so far as

the rights over such things are not regulated by special laws.

(2) It shall not be lawful, without the permission of the

President of Malta, to fish for coral or other similar things that are

formed or grown in the bottom of the sea.

Title II

O F A CCESSION

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Accession is the right whereby the person who has the

property of a thing acquires the property of all that the thing

produces, or that becomes united to, or incorporated with it,

whether naturally or artificially.

Sub-title I

O F THE R IGHT OF A CCESSION TO WHAT IS PRODUCED BY THE

T HING

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Natural, industrial, or civil fruits belong, by right of

accession, to the owner of the thing that produces them subject to

the obligation of refunding the expenses incurred by third parties

for the production or preservation of such fruits.

Sub-title II

O F THE R IGHT OF A CCESSION IN REGARD TO I MMOVABLE

T HINGS

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Where the owner of a land has made thereon

constructions, plantations, or works with materials belonging to

others, he shall be bound to pay the value of such materials, and, in

case of bad faith, to pay also damages and interest; but the owner of

the materials shall not have the right of taking them back unless he

can do so without destroying the work so constructed, or causing

the plantation to perish.

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(1) Where any such constructions, plantations, or works

have been made by a third party in possession, with his own

materials, the provisions relating to Possession under Title VI of

Part I of Book Second of this Code shall apply, regard being had as

to whether such possessor was in good or bad faith.

(2) If such third party was not a possessor within the meaning

of article 524 the provisions contained in article 543 shall in all

cases be applied.

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Where such constructions, plantations, or works have been

made by a third party with materials belonging to others, the owner

of such materials shall not be entitled to recover them back, but he

may demand to be indemnified by the third party who has made use

of such materials, and even by the owner of the tenement to the

extent of any amount which may be still due by such owner.

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Where in the construction of any building a portion of a

contiguous tenement has been occupied in good faith, and the

construction has been made with the knowledge of the neighbour

and without any opposition on his part, the ground so occupied and

the building constructed thereon may be declared to be the property

of the person who made the construction, subject to his obligation

to pay to the owner of the ground the value of the surface occupied,

and to make good any damage which may have been caused.

Sub-title III

O F THE R IGHT OF A CCESSION IN REGARD TO M OVABLE T HINGS

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(1) The right of accession in regard to movable things

belonging to several owners shall be governed by the principles of

natural equity.

(2) The provisions contained in the following articles shall

guide the court in the disposal of cases not specifically provided

for, regard being had to the particular circumstances of each case.

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(1) Where two things belonging to different owners have

been united in such a manner as to form a whole, but can

nevertheless be separated without considerable damage to either of

them, each of the owners shall retain the ownership of his own

thing, and shall be entitled to demand separation.

(2) Where, however, the two things cannot be separated

without considerable damage to one of them, the whole shall

belong to the owner of the thing which forms the principal part

thereof, subject to his obligation to pay to the other owner the value

of the thing united to his own.

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The part to be considered as principal shall be that to

which the other has been united merely for the use, adornment, or

completion of the former.

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Nevertheless, if the thing united is much more precious

than the principal thing, and has been made use of without the

c o n c u r r e n c e o f t h e o w n e r, s u c h o w n e r m a y e l e c t e i t h e r t o

appropriate the whole and pay to the owner of the principal thing

the value thereof, or to demand the separation of the thing united,

even though such separation may cause injury to the other.

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Where of two things united to form a whole neither can be

considered as the accessory of the other, the one which has the

greater value, or, if the values are approximately equal, the greater

bulk shall be deemed to be the principal.

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Where an artificer or any other person has made use of

materials not belonging to him, for the purpose of producing a

t h i n g o f a n e w s p e c i e s , t h e o w n er o f s u c h m a t e r i a l s s h a l l ,

independently of whether the materials can be restored to their

primitive condition or not, be entitled to the ownership of the thing

so produced, subject to his obligation of paying to the artificer or

other person the price of the workmanship.

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Where any person has, for the purpose of producing a

thing of a new species, made use of materials partly belonging to

him, and partly belonging to others, in such a manner that, although

neither the materials of the one nor those of the other have been

entirely transformed, such materials cannot, nevertheless, be

separated without injury, the thing shall belong in community to

both owners in such shares as correspond to the value of their

respective contribution, that is, in regard to the one, to the value of

the materials which belonged to him, and, in regard to the other, to

the value of the materials which belonged to him and the price of

the workmanship.

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Where, however, the workmanship is so valuable that it

considerably surpasses the value of the materials employed, the

workmanship shall be considered as the principal subject, and the

artificer shall be entitled to retain the thing so formed on paying to

the owner the price of the materials.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where a thing has been formed by a mixture of

different materials belonging to different owners, and such

materials can be separated without injury, the owner who has not

given his assent to the commixture, may demand separation.

(2) If the materials cannot be separated or if such separation

c a n n o t t a k e p l a c e w i t h o u t i n j u ry, t h e t h i n g c r e a t e d b y t h e

commixture becomes common property in proportion to the value

of the materials belonging to each party.

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Where, however, the materials belonging to one of the

owners can be considered as the principal subject, or are far

superior in value to the other materials, and the different materials

cannot be separated, or would, if separated, suffer injury, it shall be

lawful for the owner of such materials as are reputed to be the

principal subject, or are superior in value, to claim the ownership of

the thing created by the commixture, subject to his obligation of

paying to the other owner the value of his materials.

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Where the new subject of property remains in community

between the owners of the several materials with which the subject

was created, each co-owner may demand the judicial sale thereof

by auction for the common benefit and at joint expense.

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In all cases in which the owner of the materials employed

without his concurrence is entitled to claim the ownership of the

thing, he may demand, at his option, either that materials of the

same quality and quantity be returned to him, or the value thereof.

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Any person who has made use of materials belonging to

others without their consent may also be condemned to pay

damages, saving any criminal proceedings to which he may be

liable.

Title III

O F S UCCESSIONS

G ENERAL P ROVISIONS

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An inheritance is the estate of a person deceased, and it

devolves either by the disposition of man or, in the absence of any

such disposition, by operation of law.

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Saving the provisions relating to donations made in

contemplation of marriage and those relating to life insurance, it

shall not be lawful to dispose of an inheritance, either wholly or in

part, or of any sum of money or other particular subject belonging

to an inheritance otherwise than by a will.

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The provisions of this Code shall not supersede any other

law previously in force with regard to any testamentary instrument

made before the 11th February, 1870, even though on such date the

disponer may have been still alive

Provided that if any such instrument is not valid according to

such other law it may, unless it is revoked by the disponer, be

maintained under the provisions of this Code, provided it satisfies

the requirements thereof.

Sub-title I

O F T ESTATE S UCCESSIONS

§ I. O F W ILLS

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A will is an instrument, revocable of its nature, by which a

person, according to the rules laid down by law, disposes, for the

time when he shall have ceased to live, of the whole or of a part of

his property.

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(1) A will may contain dispositions by universal as well

as by singular title.

(2) It may also contain dispositions by singular title without

any disposition by universal title.

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(1) A disposition by universal title is that by which the

testator bequeaths to one or more persons the whole of his property

or a portion thereof.

(2)

Any other disposition is a disposition by singular title.

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(1) The word "heir" applies to the person in whose favour

the testator has disposed by universal title.

(2) The word "legatee" applies to the person in whose favour

the testator has disposed by singular title.

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(1) A will made by the spouses in one and the same

instrument, or, as is commonly known, unica charta, is valid.

(2) Where such will is revoked by one of the testators with

regard to his or her estate, it shall continue to be valid with regard

to the estate of the other.

(3) A will unica charta shall be drawn up in a manner that the

provisions with regard to the estate of one of the testators are drawn

up in a part separate from those containing the provisions of the

other spouse.

(4) The non-observance of the provisions of sub-article (3)

shall not cause the nullity of any provision of the will if it is

otherwise intelligible; but the notary drawing up the will shall be

liable to a fine of two hundred and thirty-two euro and ninety-four

cents (232.94) to be imposed by the Court of Revision of Notarial

Acts.

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(1) Where, by a will unica carta, the testators shall have

bequeathed to each other the ownership of all their property or the

greater part thereof with the express and specific condition that if

one of the testators revokes such bequest he shall forfeit any right

in his favour from such joint will, the survivor, who shall revoke

the will with regard to such bequest, shall forfeit all rights which

such person may have had in virtue of such will on the estate of the

predeceased spouse.

(2) The forfeiture mentioned in sub-article (1) can also be

ordained in the case where, by his or her act, the said bequest

cannot be effectual with regard to his or her estate.

(3) The notary drawing up a will unica charta is bound on pain

of a fine of two hundred and thirty-two euro and ninety-four cents

(232.94) to be imposed by the Court of Revision of Notarial Acts to

explain to the testators in a will unica charta the meaning and

effect of this article and of article 594, and enter in the will a

declaration to that effect.

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In the cases referred to in article 593(1) and (2) the

ownership of the property bequeathed to the spouse incurring the

forfeiture, shall, unless otherwise ordained by the other spouse,

vest in the heirs instituted by such other spouse, or if no heirs are so

instituted his heirs-at-law. The spouse who has forfeited the

property as aforesaid shall, however, retain the usufruct over such

property.

Laws of Malta — Chapter 16 — CIVIL CODE

It shall not be lawful for any two or more persons, other

than the spouses, to make a will in one and the same instrument,

whether for the benefit of any third party or for mutual benefit

Provided that a secret will in one and the same instrument shall

not be made by spouses after the 15th August, 1981.

§ II. O F THE C APACITY OF D ISPOSING OR R ECEIVING BY W ILL

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(1) Any person not subject to incapacity under the

provisions of this Code, may dispose of, or receive property by

will.

(2) All children and descendants without any distinction are

capable of receiving by will from the estate of their parents and

other ascendants to the extent established by law.

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The following persons are incapable of making wills

(a) those who have not completed the sixteenth year of

their age;

(b) those, who, even if not interdicted, are not capable of

understanding and volition, or who, because of some

defect or injury, are incapable even through

interpreters of expressing their will

Provided that a will can only be made through an

interpreter if it is a public will and the notary receiving

the will is satisfied after giving an oath to the

interpreter that such interpreter can interpret the

wishes of the testator correctly;

(c) those who are interdicted on the ground of insanity or of

mental disorder;

(d) those who, not being interdicted, are persons with a

mental disorder or other condition, which renders them

incapable of managing their own affairs at the time of the

will;

(e) those who are interdicted on the ground of prodigality

unless they have been authorized to dispose of their

property by the court which had ordered their

interdiction

Provided that a person interdicted on the ground of

prodigality may, even without the authority of the

court, revoke any will made by him prior to his

interdiction.

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(1) Those who have not completed the eighteenth year of

their age cannot make by will other than remuneratory dispositions.

(2) Nevertheless, where any such disposition, regard being had

to the means of the testator and to the services in reward of which it

is made, is found to exceed a reasonable amount, it may be reduced

by the court to such amount.

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Any will made by a person subject to incapacity is null,

even though the incapacity of the testator may have ceased before

his death.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Those who, at the time of the testator’s death or of the

fulfilment of a suspensive condition on which the disposition

depended, were not yet conceived are incapable of receiving by

will.

(2) The provisions of this article shall not apply to the

immediate children of a determinate person who is alive at the time

of the death of the testator, nor to persons who may be called to the

enjoyment of a foundation.

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(1) Those who are not born viable are incapable of

receiving by will.

(2) In case of doubt, those who are born alive shall be

presumed to be viable.

Laws of Malta — Chapter 16 — CIVIL CODE

All the children of the testator whether born in wedlock,

out of wedlock or adopted or whether or not the presumption

referred to in articles 102 to 112 applies to them may receive by

will from the testator.

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(1) Where any person has -

(a) wilfully killed or attempted to kill testator or his or her

spouse; or

(b) charged the testator, or the spouse, before a competent

authority, with a crime punishable with imprisonment,

of which he knew the testator, or the spouse, to be

innocent; or

(c) compelled, or fraudulently induced the testator to

make his will, or to make or alter any testamentary

disposition; or

(d) prevented the testator from making a new will, or from

revoking the will already made, or suppressed,

falsified, or fraudulently concealed the will,

he shall be considered as unworthy, and, as such, shall be incapable

of receiving property under a will.

(2) The provisions of this article shall also apply to any person

who has been an accomplice in any of the said acts.

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Any person who has incurred any of the disqualifications

stated in the last preceding article may receive by will if the

testator has rehabilitated him by a subsequent will or by any other

public deed.

Laws of Malta — Chapter 16 — CIVIL CODE

Any heir or legatee, excluded as unworthy from receiving

the inheritance or legacy, is bound to restore any fruits or revenues

which he may have received since the opening of the succession.

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The descendants of a person excluded as unworthy shall, in

all cases, be entitled to the reserved portion, which would have

been due to the person so excluded

Provided that such person shall not have, over the portion

of the estate vested in his children, the right of usufruct and

administration which the law grants to parents.

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(1) A tutor or curator cannot benefit under a will made

during the tutorship or curatorship by the person under his charge.

(2) The same rule shall apply where the will is made after the

termination of the tutorship or curatorship, but before the rendering

of the final account, even if the testator dies after the approval of

such account.

(3) The disability laid down in this article shall not apply to the

tutor or curator who is an ascendant, descendant, brother, uncle,

nephew, cousin or spouse of the person making the will.

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Saving the provisions of the Trusts and Trustees Act and of

article 12 of the Notarial Profession and Notarial Archives Act, the

notary by whom a public will has been received, or the person by

whom a secret will has been written out, cannot benefit in any way by

any such will.

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(1) The members of monastic orders or of religious

corporations of regulars cannot, after taking the vows in the

religious order or corporation, dispose by will.

(2) Nor can such persons receive under a will except small life

pensions, saving any other prohibition laid down by the rules of the

order or corporation to which they belong.

(3) * Where such persons are lawfully released from their vows,

they shall again acquire the capacity to receive under a will, as well

as to dispose of such property as they may have subsequently

acquired, and any disposition made in favour of a person who at the

time of the testator’s death was a member of a monastic order or of

a religious corporation of regulars shall remain suspended until

such person is either released from his vows as aforesaid or dies

while still a member of such order or corporation, and shall be

ineffectual if the person, in whose favour it is made, dies while still

such a member.

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(1) Any testamentary disposition in favour of a person

who is incapable in terms of articles 609 and 610 is void, even if

such disposition is made in the name of intermediaries.

(2) Where the incapacity is partial any such disposition shall be

void only in part.

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Any one of the parents, the descendants, and the spouse of

the person under any such incapacity, as the case may be, shall be

deemed to be intermediaries.

§ III. O F THE P ROPERTY WHICH MAY BE DISPOSED OF BY W ILL

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(1) Where the testator has no descendants or spouse, he

may dispose by universal or singular title of the whole of his estate

in favour of any person capable of receiving under a will.

(2) Where the testator has descendants or a spouse, the

disposable portion of his estate shall be that which remains after

deducting such share as is due to the said descendants or spouse

under any of the provisions of articles 615 to 653.

*For the application of this provision see article 4 of Act V of 1993.

O F THE RESERVED PORTION AND D ISHERISON

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(1) The reserved portion is the right on the estate of the

deceased reserved by law in favour of the descendants and the

surviving spouse of the deceased.

(2) The said right is a credit of the value of the reserved portion

against the estate of the deceased. Interest at the rate established in

article 1139 shall accrue to such credit from the date of the opening

of succession if the reserved portion is claimed within two years

from such date, or from the date of service of a judicial act if the

claim is made after the expiration of the said period of two years

Provided that the Court may, if the circumstances of the case

so require, decide not to award any interest or establish a rate of

interest which is lower than that stipulated in article 1139.

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(1) The reserved portion due to all children whether

conceived or born in wedlock or conceived and born out of

wedlock or adopted shall be one-third of the value of the estate if

such children are not more than four in number or one-half of such

value if they are five or more.

(2) The reserved portion is divided in equal shares among the

children who participate in it.

(3) Where there is only one child, he shall receive the whole of

the aforesaid third part.

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For the purposes of the last preceding article the word

"chil dren " shal l i nclu de t he descendan ts o f t he ch il dren in

whatsoever degree they may stand. Nevertheless, such descendants

shall only be reckoned for the child from whom they descend.

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(1) Children or other descendants who are incapable of

receiving property by will, or who have been disinherited by the

testator, or have renounced their share, shall also be taken into

account in determining the number of children for the purpose of

regulating the reserved portion.

(2) Saving the provisions of articles 608 and 626 the portions

of the children or other descendants who are incapable, or who

have been disinherited, or have renounced their share, shall devolve

in favour of the other children or descendants taking the reserved

portion.

(3) A child or other descendant who has been instituted heir,

who had he not been so instituted would have been entitled to share

the reserved portion, shall also be entitled to share therein

notwithstanding that he was so instituted.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.60.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) It shall not be lawful for the testator to encumber the

reserved portion with any burden or condition.

(2) The reserved portion is calculated on the whole estate, after

deducting the debts due by the estate, and the funeral expenses.

(3) There shall be included in the estate all the property

disposed of by the testator under a gratuitous title, even in

contemplation of marriage, in favour of any person whomsoever,

with the exception of such expenses as may have been incurred for

the education of any of the children or other descendants.

(4) The person to whom the reserved portion is due shall

impute to it all such things as he may have received from the

testator and as are subject to collation under any of the provisions

of articles 913 to 938.

(5) The person claiming the reserved portion shall take into

account his share any property bequeathed to him by will and

cannot renounce any testamentary disposition in his favour and

claim the reserved portion, except when such testamentary

disposition is made in usufruct or consists in the right of use or

habitation, or consists of a life annuity or an annuity for a limited

time.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where the subject of the testamentary disposition is a

right of usufruct or a life annuity, and it appears to the persons

entitled to the reserved portion that the value of such usufruct or

life-rent surpasses the disposable portion of the estate of the

testator, they shall only have the option either to abide by the

testamentary disposition or to take the share due to them by way of

reserved portion free from every charge, on abandoning in favour

of the disponees of the usufruct or life-annuity the full ownership

of the disposable portion.

(2) Where any of the persons entitled to reserved portion elects

in his own interest to abide by the testamentary disposition, it shall,

nevertheless, be lawful for any other of such persons to elect to

t a k e t h e r e s e r v e d p o r t io n on ab a n d on i n g, a s af o r e s a id , t he

disposable portion.

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Besides the grounds on which a person may become

unworthy to inherit, the persons entitled by law to a reserved

portion may be deprived thereof by a specific declaration of the

testator on any of the grounds specified in this Code, to be stated in

the will.

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Saving the provisions of article 630, the grounds on

which a descendant may be disinherited are the following only

(a) if the descendant has without

reason

refused

maintenance to the testator;

(b) if, where the testator has become insane, the

descendant has abandoned him without in any manner

providing for his care;

(c) if, where the descendant could release the testator

from prison, he has without reasonable ground failed

to do so;

(d) if the descendant has struck the testator, or has

otherwise been guilty of cruelty towards him;

(e) if the descendant has been guilty of grievous injury

against the testator;

(f)

if the descendant is a prostitute without the connivance

of the testator;

(g) in any case in which the testator, by reason of the

marriage of the descendant, shall have been, under the

provisions of articles 27 to 29, declared free from the

obligation of supplying maintenance to such

descendant.

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Repealed by: XVIII.2004.65.

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(1) The ground of disherison must be proved by the party

alleging such disherison.

(2) Where more grounds are stated, the proof of one is

sufficient.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) If the person disinherited has children or other

descendants, the reserved portion of which such person has been

deprived shall be due to them.

(2) In any such case the person disinherited shall not have over

the reserved portion the usufruct or administration to which he may

be entitled by law.

Laws of Malta — Chapter 16 — CIVIL CODE

Where the person disinherited predeceases the testator, the

disherison shall not prejudice the rights of his descendants.

Laws of Malta — Chapter 16 — CIVIL CODE

Where the person disinherited has no other means of

subsistence, those who in consequence of his disherison shall

benefit by his reserved portion, shall be bound to give him

maintenance to the extent of the fruits of the reserved portion,

saving any other right to maintenance competent according to law.

Laws of Malta — Chapter 16 — CIVIL CODE

Where the ground of disherison is not stated, or is not

proved, the person disinherited shall only be entitled to the

reserved portion.

Laws of Malta — Chapter 16 — CIVIL CODE

Where the person entitled to the reserved portion is

interdicted on the ground of prodigality, or is so burdened with

debts that the reserved portion, or at least the greater part of it,

would be absorbed by such debts, it shall be lawful for the testator

by an express declaration to disinherit such person, and to bequeath

the reserved portion to the children or descendants of such person.

O F THE R IGHTS OF THE SURVIVING S POUSE

Laws of Malta — Chapter 16 — CIVIL CODE

Where a deceased spouse is survived by children or other

descendants, the surviving spouse shall be entitled to one-fourth of

the value of the estate in full ownership.

Laws of Malta — Chapter 16 — CIVIL CODE

If there are no children or descendants as stated in article

631, the surviving spouse shall be entitled to one-third of the value

of the estate in full ownership.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The surviving spouse shall be entitled to the right of

habitation over the tenement occupied as the principal residence by

the said surviving spouse at the t ime of the decease of the

predeceased spouse, where the same tenement is held in full

ownership or emphyteusis by the deceased spouse either alone or

jointly with the surviving spouse.

(2) The extent of the tenement subject to the right of habitation

shall not be limited on the grounds that, after the death of the

predeceased spouse the surviving spouse requires a lesser part of

the tenement.

(3) For the purposes of articles 631 and 632, the tenement

subject to the right of habitation under this article shall be excluded

from the estate of the deceased over which the surviving spouse has

a reserved portion.

(4) The provisions of article 395 shall not apply to the right of

habitation granted under this article.

(5) The right conferred in sub-article (1) shall subsist even

where such right has the effect of reducing, during the lifetime of

the surviving spouse, the reserved portion due to any other person.

(6) Where a creditor of the deceased spouse enforces his right

over the tenement subject to the right under this article, or where

the heirs who have accepted the inheritance with the benefit of

inventory sell such tenement in satisfaction of any debt due by the

inheritance, and in either case there exists other assets of the

inheritance with which such debts may be satisfied, the surviving

spouse shall have a right to demand, within one year of the sale,

damages from the heirs of the deceased spouse, or from the heirs of

the deceased spouse who have accepted with the benefit of

inventory who shall not have taken any possible action to pay such

debts out of the other assets.

(7) The spouses may, in a pre-nuptial or post-nuptial

agreement, in accordance with this Code, whichever patrimonial

regime is to regulate their property, exclude or reduce the right

competent to the surviving spouse in virtue of this article.

(8) The right of habitation conferred in this article shall cease

on the remarriage of the surviving spouse, or if the surviving spouse

enters into a public deed of cohabitation.

Laws of Malta — Chapter 16 — CIVIL CODE

Where the matrimonial home belongs in part to the

surviving spouse, in any partition between the heirs of the deceased

and the surviving spouse, the surviving spouse, or the said heirs,

may demand that the property subject to the right of habitation be

assigned to the surviving spouse upon a valuation which is to take

account of such right of habitation over the property.

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The surviving spouse shall also have the right of use over

any of the furniture in the matrimonial home belonging to the

deceased spouse.

Laws of Malta — Chapter 16 — CIVIL CODE

The provisions of article 318 shall apply in relation to the

right of use referred to in article 635.

Laws of Malta — Chapter 16 — CIVIL CODE

The provisions of article 633(3), (6), (7) and (8) shall

mutatis mutandis apply to the right of use granted by article 635.

Laws of Malta — Chapter 16 — CIVIL CODE

The provisions of articles 631, 632, 633 and 635 shall not

apply in any of the following cases

(a) if, at the time of the death of one of the spouses, the

spouses were separated by a judgement of the

competent civil court, and the surviving spouse had, in

terms of articles 48, 51 and 52, forfeited the rights

referred to in those articles;

(b) where the predeceased spouse has, by his will, on any

of the grounds mentioned in article 623(a), (b), (c), (d)

and (e), or on the grounds of adultery, expressly

deprived the surviving spouse of the rights referred to

in articles 631 to 633 and 635 and such ground, or

where more grounds are stated, any of such grounds, is

proved;

(c) if, in regard to the surviving spouse, there exists any of

grounds on which such spouse would under article 605

be, as unworthy, incapable of receiving by will.

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The rights referred to in article 633 and article 635 shall

also apply in cases where

(a) the spouses were personally separated and the

surviving spouse was either in terms of article 55A or

in terms of a public deed of consensual separation

entitled to reside in the matrimonial home; or

(b) the person who died was divorced and his former

spouse was, at the time of his death, entitled to reside

in the matrimonial home by virtue of the applicability

of the provisions of article 66(5) and article 55A.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.73.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.73.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.73.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.73.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.73.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.73.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.73.

O F THE A BATEMENT OF T ESTAMENTARY D ISPOSITIONS

EXCEEDING THE DISPOSABLE P ORTION

Laws of Malta — Chapter 16 — CIVIL CODE

Testamentary dispositions exceeding the disposable

portion, shall be liable to abatement and limited to that portion, at

the time of the opening of the succession, provided the demand is

made within the time established in article 845.

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For the purpose of determining the abatement, the

following rules shall be observed

(a) all the property of the testator, existing at the time of

his death, shall be formed in one bulk, after deducting

therefrom the debts due by the estate;

(b) any property which has been disposed of by way of

donation shall be then fictitiously added, such property

being reckoned at its value at the time of the donation;

(c) the disposable portion shall then be computed

according to the estate thus formed, regard being had

to the rights of the surviving spouse in accordance

with articles 615 to 639.

Laws of Malta — Chapter 16 — CIVIL CODE

Where the value of the donations exceeds, or is equal to,

the disposable portion, all testamentary dispositions shall be

ineffectual.

Laws of Malta — Chapter 16 — CIVIL CODE

Where the testamentary dispositions exceed either the

disposable portion, or the residue thereof after deducting the value

of the donations, they shall abate proportionately without any

distinction between heirs and legatees.

Laws of Malta — Chapter 16 — CIVIL CODE

Nevertheless, in all cases where the testator has expressly

declared his intention to be that a disposition shall have effect in

preference to the others, such preference shall take place, and any

such disposition shall not abate except in so far as the value of the

property included in the other dispositions shall not be sufficient to

make up the share reserved by law.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where the legacy subject to abatement is a thing from

which the part exceeding the disposable portion can conveniently

and without being injuriously affected be separated, the abatement

shall be effected by means of such separation.

(2) Where, however, such separation cannot conveniently and

without injury be effected, it shall be lawful for the legatee to pay

in cash the amount due by him to the party claiming the abatement.

§ IV.O F THE F ORM OF W ILLS

O F O RDINARY W ILLS

Laws of Malta — Chapter 16 — CIVIL CODE

A will may be either public or secret.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Saving any other provision of this Code, a public will

is received and published by a notary in the presence of two

witnesses in the same manner as any other notarial instrument, in

accordance with the provisions of the Notarial Profession and

Notarial Archives Act, even in regard to the signature of the

testator, according as to whether the testator knows how to, and can

write, or not.

(2) The signature of the witnesses is in no case dispensed with

whatever may be the value of the thing disposed of by the will.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) A secret will may be printed, type-written or written

in ink either by the testator himself or by a third person.

(2) Where the testator knows how to, and can write, the will

shall, in all cases, be signed by him at the end thereof.

(3) Where the testator does not know how to, or cannot write,

the provision of article 663 shall apply.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The paper on which a secret will is written, or the

paper used as its envelope shall be closed and sealed.

(2) The testator shall on delivering such paper declare that it

contains his will.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) A secret will shall be delivered by the testator to a

notary, or, in the presence of the judge or magistrate sitting in the

court of voluntary jurisdiction, to the registrar of such court.

(2) The will shall be deemed to have been made on the day on

which it is so delivered.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The notary who receives a secret will shall draw up

the act of delivery, recording therein the declaration prescribed in

sub-article (2) of article 657, on the paper itself on which the will is

written, or on the paper used as its envelope.

(2) The act of delivery shall be signed by the testator, the

witnesses, and the notary.

(3) Where the testator declares that he does not know how to,

or cannot write, the notary shall enter such declaration at the foot of

the act, and such entry shall be equivalent to the signature.

Laws of Malta — Chapter 16 — CIVIL CODE

A notary who has received a secret will, shall, within four

working days, to be reckoned from the day of the delivery, present

such will to the court of voluntary jurisdiction for preservation by

the registrar, as provided in the Code of Organization and Civil

Procedure.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Any notary who acts in contravention of the provision

of the last preceding article shall, upon civil proceedings instituted

at the suit of the State Advocate, be condemned to interdiction from

his office for a period not exceeding two years, or to a fine (multa)

of not less than two hundred and thirty-two euro and ninety-four

cents (232.94), nor exceeding two thousand and three hundred and

twenty-nine euro and thirty-seven cents (2,329.37).

(2) The provisions of this article shall not supersede the

provisions of the Criminal Code, where the facts constitute an

offence under that Code.

Laws of Malta — Chapter 16 — CIVIL CODE

Where a secret will is presented directly to the court, the

note of particulars required under article 529 of the Code of

Organization and Civil Procedure shall be equivalent to the act of

delivery.

Laws of Malta — Chapter 16 — CIVIL CODE

It shall not be lawful for any person who does not know

how to, or cannot write, to make any disposition by a secret will

without the assistance of a judge or magistrate.

Laws of Malta — Chapter 16 — CIVIL CODE

The judge or magistrate requested to give his assistance

under the last preceding article, shall read out and explain to the

testator the contents of the paper which the testator declares to be

his will, and shall enter, at the foot thereof, a declaration to the

effect that he has complied with such requirements, and that he is

satisfied that the contents of the paper are in accordance with the

intention of the testator. Such declaration shall be dated and signed

by the judge or magistrate.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The said judge or magistrate shall, after the will is

duly closed and sealed, enter on the paper itself on which the will is

written, or on that used as its envelope, a declaration to the effect

that such paper or envelope contains the will of the person making

it, and shall affix his signature to such declaration.

(2) Such declaration shall not operate so as to dispense with the

act of delivery referred to in article 659 or the note of particulars

referred to in article 662.

Laws of Malta — Chapter 16 — CIVIL CODE

It shall be lawful for a testator who does not know how to,

or cannot read and write, to apply for the assistance of any judge or

magistrate being, even temporarily, in the island or place in which

his assistance is required, including the judge or magistrate sitting

in the competent court in which the will is to be deposited.

Laws of Malta — Chapter 16 — CIVIL CODE

The judge or magistrate giving his assistance, as provided

in the last four proceeding articles, shall be bound not to disclose

the contents of the will.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) A person who is deaf-and-dumb, or dumb only,

whether congenitally or otherwise, may, if he knows how to write,

make a secret will, provided the will is entirely written out and

signed by him, and provided he himself, in the presence of the court

or of the notary to which or to whom he presents such will, and of

the witnesses of the delivery, writes down on the paper which he

presents, that such paper contains his will.

(2) The notary in the act of delivery, or, as the case may be, the

registrar, in the note of particulars referred to in article 662, shall

state that the testator wrote the declaration mentioned in sub-article

(1) of this article, in the presence of the notary and the witnesses,

or in the presence of the court.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where a person who is totally deaf, but can read,

desires to make a public will, he shall read such will himself in the

presence of the notary and the witnesses, and the notary shall,

before the will is signed by himself and the witnesses, enter, at the

foot of the will, a declaration to the effect that the will has been so

read by the testator.

(2) Where, however, such deaf person cannot read, he himself

shall declare his will in the presence of the notary and the

witnesses, and the notary shall, before the will is signed by himself

and the witnesses, enter, at the foot of the will, a declaration to the

effect that the will is in accordance with the will as declared by the

testator.

Laws of Malta — Chapter 16 — CIVIL CODE

In public wills, the heirs, legatees, or their relations by

consanguinity or affinity within the degree of uncle or nephew,

inclusively, shall not be competent witnesses.

Laws of Malta — Chapter 16 — CIVIL CODE

The testator may at any time withdraw his secret will from

the notary to whom he shall have delivered it, if the will is still with

such notary, or from the registry in which it shall have been

deposited.

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Non-compliance with the requirements of articles 655,

656, 657, 658, 659, 663, 668, 669 and 670 shall, saving the

provisions of articles 673 to 682 inclusive relating to privileged

wills render the will null and void.

O F P RIVILEGED W ILLS

Laws of Malta — Chapter 16 — CIVIL CODE

(1) In places with which communications have been

interrupted by order of the public authority, a will may be received

in writing, in the presence of two witnesses, by a judge, magistrate,

or notary, or by the parish priest, or other ecclesiastic in holy

orders.

(2) Such will shall in all cases be, on pain of nullity, signed by

the person receiving it.

(3) Such will shall, moreover, on pain of nullity, be signed,

where practicable, by the testator and the witnesses. If under the

circumstances the signing of the will by the testator and the

witnesses is not practicable, there shall, on pain of nullity, be

entered in the will a declaration stating the reason for which such

signatures have not been affixed.

(4) In any such will, any person of either sex, provided he or

she has attained the age of eighteen years, may act as a witness.

Laws of Malta — Chapter 16 — CIVIL CODE

Any such will shall become void on the lapse of two

months from the day on which communications with the place in

which the testator is, shall have been re-established, or from the

day on which the testator shall have removed to any place with

which communications are not interrupted, provided the testator is

still alive after the lapse of the said time.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) A will made in accordance with the provisions of the

foregoing articles shall, within a month from the day on which

communications shall have been re-established, be deposited by the

person receiving it in the registry of the court of voluntary

jurisdiction of the island in which it has been received unless such

will shall have been, before the expiration of such time, withdrawn

by the testator.

(2) Any person acting in contravention of the provisions of this

a r t i c l e sh a l l , o n p r o c e e d i n g s t a k e n i n ac c o r d an ce w i t h t h e

provisions of article 661, be liable to the punishments therein

mentioned, in so far as such punishments may be applicable.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) A will made at sea, on board any ship registered in

Malta, may be received, in writing, by the master, or the person

acting in his stead.

(2) A will made by the master may be received by the person

who in his absence, would have the command of the ship.

(3) In all cases, the will shall be received in duplicate, and in

the presence of two witnesses who have attained the age of

eighteen years.

(4) Non-compliance with any of the foregoing requirements

shall render the will null and void.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The will referred to in the last preceding article shall

be signed by the testator, by the person receiving it, and by the

witnesses.

(2) Where the testator or the witnesses do not know how to, or

cannot write, there shall be entered in the will a declaration stating

the reason for which such signature was not affixed.

(3) Non-compliance with the provisions of this article shall

render the will null and void.

Laws of Malta — Chapter 16 — CIVIL CODE

The master, or the person keeping the log-book and the

ship’s papers, shall, under penalty of a fine (multa) not exceeding

twenty-three euro and twenty-nine cents (23.29), recoverable by

civil proceedings as provided in article 661, make and sign an entry

relating to the receipt of such will, both in the log-book and in the

muster-roll.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where, after the receipt of any such will, the ship

returns to the port of Malta, the master, or the person in possession

of the will, shall, within the time of eight working days, present

such will to the court of voluntary jurisdiction, unless such will

shall have been, before the expiration of such time, withdrawn by

the testator.

(2) If the ship touches at any port outside Malta, the master, or

the person in possession of the will, shall deposit one of the

duplicates with the diplomatic or consular representative of the

Government of Malta in that port or with a person serving in a

diplomatic, consular or other foreign service of any country which,

by arrangement with the Government of Malta, has undertaken to

represent that Government’s interests in that port or with a person

authorized in that behalf by the President of Malta, or in the

absence of such persons, with some trustworthy person being a

citizen of Malta or other Commonwealth citizen, and shall, with all

possible dispatch, transmit the other duplicate to the Authority for

Transport in Malta who shall, within the time of eight days, present

it to the said court.

(3) Any person acting in contravention of any of the provisions

of this article shall, on proceedings taken in accordance with the

provisions of article 661, be liable to interdiction from his office or

profession for a time not exceeding two years, or to any of the other

punishments prescribed in that article.

Laws of Malta — Chapter 16 — CIVIL CODE

A will made at sea in the manner prescribed in article 676

and the articles following, shall have effect only if the testator dies

at sea or within two months after he shall have landed in a place

where he could have made another will in the ordinary form.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Any testamentary disposition made in favour of the

person receiving any of the wills referred to in article 673 and the

articles following, or in favour of the witnesses, or, in the case of a

will made at sea, in favour of any member of the crew, shall be

void.

(2) Any disposition in favour of any one of the parents, the

child or other descendant, or the spouse of any of the persons

referred to in sub-article (1) of this article shall likewise be void.

Laws of Malta — Chapter 16 — CIVIL CODE

(Deleted by Act XVI.2015.4.).

§ V.O F THE I NSTITUTION OF H EIRS, OF L EGACIES, AND

OF THE R IGHT OF A CCRETION

O F THE I NSTITUTION OF H EIRS, AND OF L EGACIES

Laws of Malta — Chapter 16 — CIVIL CODE

Any testamentary disposition, whether made under the

designation of institution of heir, or under the designation of

legacy, or under any other designation whatsoever, shall have

effect, provided it be so expressed that the intention of the testator

may be ascertained, and it be not contrary to the provisions of this

Code.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) If the testator has disposed only of a portion of the

inheritance, the residue thereof shall vest in his heirs-at-law,

according to the order established in the case of intestate

succession.

(2) The same rule shall apply if the testator has only made

singular legacies.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Any testamentary disposition founded on a reason

which constituted the sole inducement of the testator, and which is

false, shall have no effect.

(2) If the testator has stated a reason, and the indications of the

w i ll are n o t s uc h a s t o sh ow t ha t su ch r ea so n w as t h e so le

inducement, the testamentary disposition, even if such reason is

proved to be false, shall have effect, unless it is proved that the

testator was solely induced by the reason stated in the will.

O F P ERSONS AND T HINGS FORMING THE SUBJECT OF A

D ISPOSITION

Laws of Malta — Chapter 16 — CIVIL CODE

Any testamentary disposition made, by what is commonly

known as implied nuncupation, or per relationem ad schedulam is

void.

Laws of Malta — Chapter 16 — CIVIL CODE

Any testamentary disposition in favour of a person so

uncertain that he cannot be identified even upon the happening of a

contingency referred to in the will, is also void.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Any testamentary disposition made in favour of an

uncertain person to be designated by the heir or by a third party is

likewise void.

(2) Nevertheless, it shall be lawful to make a testamentary

disposition by singular title in favour of a person to be selected by

the heir or by a third party among several persons specified by the

testator, or belonging to families, or bodies corporate, specified by

him.

(3) It shall likewise be lawful to make a disposition by singular

title in favour of a body corporate to be selected by the heir or by a

third party, among several bodies corporate specified by the

testator.

Laws of Malta — Chapter 16 — CIVIL CODE

A testamentary disposition made in favour of the nearest

relation of a person shall, in default of any other designation, be

deemed to have been made in favour of the persons in whom the

intestate succession of the said person would legally vest.

Laws of Malta — Chapter 16 — CIVIL CODE

A disposition made in general terms in favour of the poor,

shall be deemed to be made in favour of the poor of the island in

which the testator resided at the time of his death.

Laws of Malta — Chapter 16 — CIVIL CODE

Any disposition made in general terms in favour of the

soul of the testator or of any other person shall, if the pious use has

not been specified, have no effect.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) No evidence is admissible which is intended to show

that the institution or legacy, made in favour of any person, or body

corporate, or for any use specified in the will, is merely fictitious,

and that such institution or legacy is in reality made in favour of a

person or body corporate, or for a use, not disclosed in the will,

notwithstanding any expression contained in the will calculated to

constitute an indication or a presumption of any such intention.

(2) The provisions of this article shall not apply in any case in

which the institution or legacy is impeached on the ground that

such institution or legacy was made through intermediaries in

favour of persons under a disability.

Laws of Malta — Chapter 16 — CIVIL CODE

Any testamentary disposition whereby even a sum of

money or any other determinate thing is bequeathed to a person

designated in the will for the purpose of making such use thereof as

the testator shall have declared to have confided to such person,

shall be null, even though such person shall offer to prove that such

disposition is in favour of persons capable of receiving property by

will, or for lawful purposes.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) If the person of the heir or of the legatee is

erroneously designated, the testamentary disposition shall have

effect, if the identity of the person whom the testator intended to

designate is otherwise certain.

(2) The same rule shall apply where the thing forming the

subject of the legacy shall have been erroneously indicated or

described, if it is otherwise certain what thing the testator wished to

dispose of.

Laws of Malta — Chapter 16 — CIVIL CODE

Any testamentary disposition giving to the heir or to a

third party absolute discretion in fixing the quantity of the legacy is

null, except where it is a legacy made by the testator by way of

remuneration for services rendered to him during his last illness.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where the thing forming the subject of a legacy

belongs to a person other than the testator, such legacy shall be

null, unless it is stated in the will that the testator knew that the

thing was not his property, but the property of others, in which case

the heir may elect either to acquire the thing bequeathed in order to

make delivery thereof to the legatee, or to pay to such legatee the

fair value thereof.

(2) Where, however, the thing so bequeathed, although

belonging to others at the time of the will, is the property of the

testator at the time of his death, the legacy shall be valid.

Laws of Malta — Chapter 16 — CIVIL CODE

The provisions of the last preceding article shall also

apply if the thing forming the subject of the legacy belongs to the

heir, or to the legatee required under the will to give it to a third

party.

Laws of Malta — Chapter 16 — CIVIL CODE

Where a part of the thing bequeathed, or a right over such

thing, belongs to the testator, the legacy of such thing shall be valid

only to the extent of such part or right, unless it is stated in the will

that the testator knew that the thing did not wholly belong to him.

Laws of Malta — Chapter 16 — CIVIL CODE

Where the thing forming the subject of a legacy is an

indeterminate movable thing included in a genus or species, such

legacy is valid, even though no thing pertaining to such genus or

species existed in the estate of the testator at the time of the will or

is found to exist at the time of the death of the testator.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where the testator shall have bequeathed as belonging

to him any determinate thing, or any thing included in a given

genus or species, the legacy shall have no effect, if the thing is not

found to exist in the estate of the testator at the time of his death.

(2) If the thing is found to exist in the estate of the testator at

the time of his death, but not in the quantity specified in the will,

the legacy shall have effect to the extent of the quantity so existing.

Laws of Malta — Chapter 16 — CIVIL CODE

Where the subject of the legacy is a thing or a quantity to

be taken from a specified place, such legacy shall only have effect

if such thing is found therein; and, if only a part thereof is found in

the place specified by the testator, it shall only have effect to the

extent of such part.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where the subject of the legacy is a thing which, at

the time of the will, was already the property of the legatee, such

legacy shall be null.

(2) If the legatee shall have acquired the thing forming the

subject of the legacy at any time after the will, either from the

testator himself under an onerous title, or from any other person

under any title whatsoever, he shall, in the event of the existence of

the circumstances referred to in article 696 be entitled to claim the

value of such thing, notwithstanding the provisions of article 743.

(3) Where the legatee shall have acquired the thing from the

testator under a gratuitous title, the legacy shall be considered to be

adeemed.

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Where the subject of the legacy is a sum owing to the

testator, or consists in discharging a debtor from a debt due to the

testator, the legacy shall only have effect with regard to such

portion of the debt as shall still be owing at the time of the death of

the testator.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where the testator bequeaths by way of legacy any

determinate thing or sum, as due by him to the legatee, the legacy is

valid, even though such thing or sum is not due.

(2) If such thing or sum is due by the testator, the legatee

acquires a new action for the recovery of the thing or sum due to

him, and, where otherwise the thing or sum would not have been

exigible except after the lapse of a certain time, or if the payment

thereof was dependent upon the fulfilment of a condition, the

legatee shall not be bound to wait until the expiration of such time,

or the fulfilment of such condition.

(3) The legacy, however, shall be ineffectual if the testator

shall pay the debt at any time after the will.

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(1) Where the testator, without mentioning the debt due

by him, makes a legacy in favour of his creditor, such legacy shall

not be deemed to have been made in satisfaction of the debt due to

the legatee.

(2) A legacy made in favour of a servant, shall not be deemed

to have been made in satisfaction of his wages.

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Where the legacy consists in discharging the debtor from

the debts due by him to the testator, such legacy shall be deemed to

include only such debts as were due to the testator at the time of the

will, and not such other debts as may have been subsequently

contracted.

Laws of Malta — Chapter 16 — CIVIL CODE

A legacy of maintenance shall include food, clothing,

habitation, and other necessaries during the life of the legatee; and

it may also, according to circumstances, include the education of

the legatee according to his condition.

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Where the testator who has bequeathed the ownership of

an immovable property, has subsequently increased such property

by further acquisitions, such acquisitions, even though contiguous,

shall not be deemed to form part of the legacy, unless a fresh

bequest is made.

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The testator may leave a pre-legacy to his heir and, in any

such case, the heir, with regard to such pre-legacy, shall be

considered as a legatee.

O F C ONDITIONAL OR L IMITED D ISPOSITIONS

Laws of Malta — Chapter 16 — CIVIL CODE

Any disposition, by universal or singular title, may be

either pure or conditional.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where the condition is impossible, or contrary to law

or morals, it shall vitiate the disposition to which it is attached.

(2) Where the condition is unintelligible it shall be considered

as if it had not been attached.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) A condition prohibiting a first or a subsequent

marriage shall be considered as if it had not been attached.

(2) Nevertheless, where a legacy consisting in a right of

usufruct, use, or habitation, or in a pension or other periodical

payment, is contingent on the legatee remaining, and limited to the

period during which he or she remains a bachelor or spinster, or a

widower or widow, the legatee shall be entitled to enjoy the legacy

only as long as he or she shall remain a bachelor or spinster, or a

widower or widow.

(3) A condition in restraint of remarriage, attached to a

testamentary disposition by one of the spouses in favour of the

other, shall be valid.

Laws of Malta — Chapter 16 — CIVIL CODE

Any condition restraining the heir from availing himself of

the benefit of inventory shall be considered as if it had not been

attached.

Laws of Malta — Chapter 16 — CIVIL CODE

If, in any testamentary disposition by universal title, the

testator shall fix a day on or from which the institution of the heir

shall commence or cease, such limitation shall be considered as if it

had not been attached.

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Any testamentary disposition, whether by universal or

singular title, made by the testator on condition that he shall in

return benefit by the will of the heir or legatee, is null.

Laws of Malta — Chapter 16 — CIVIL CODE

Any testamentary disposition made subject to a condition

depending upon an uncertain event, and being such that, in the

intention of the testator, the validity thereof is dependent upon the

happening or non-happening of such event, shall be ineffectual if

the person, in whose favour it is made, dies before the fulfilment of

the condition.

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A condition which, in the intention of the testator, is

merely meant to suspend the execution of the testamentary

disposition, shall not operate so as to bar the heir or legatee from

acquiring, even before the fulfilment of the condition, a vested

right transmissible to the heirs of such heir or legatee.

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If the testator has left the inheritance or legacy subject to

the obligation that the heir or legatee shall forbear from doing or

from giving a specified thing, the heir or legatee shall be bound to

give sufficient security, for the fulfilment of such obligation, by

means of sureties or by means of a hypothecation or pledge in

favour of the persons in whom, in case of non-fulfilment, the

inheritance or legacy would vest.

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Likewise, where a legacy is bequeathed conditionally, or

as not exigible before a certain time, the person charged with the

payment of the legacy, may be compelled to furnish security as

aforesaid in favour of the legatee.

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(1) If the heir has been instituted subject to a condition of

the nature of those mentioned in article 716, there shall be

appointed an administrator of the inheritance until such condition is

fulfilled or it is certain that it cannot be fulfilled.

(2) An administrator shall also be appointed when the heir or

the legatee fails to give the security required under the last two

preceding articles, as well as in the case in which the instituted heir

is the immediate issue, as yet unconceived, of a person living at the

time of the death of the testator as provided in article 600.

(3) Such administrator shall have the same powers and duties

as the curator of a vacant inheritance, subject to any other direction

which, according to circumstances, the court shall deem fit to give.

O F THE E FFECTS OF L EGACIES AND OF THE P AYMENT THEREOF

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(1) Any pure and simple legacy shall vest the legatee, as

from the day of the death of the testator, with the right to receive

the thing bequeathed, transmissible to the heirs of such legatee, or

to any person claiming under him.

(2) Where the legacy is made conditionally, such right shall not

vest in the legatee before the fulfilment of the condition.

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(1) Where the subject of the legacy is an indeterminate

thing, included in a given genus or species, the right of selection

shall belong to the heir, who cannot be compelled to deliver a thing

of the best quality, but cannot offer a thing of the worst quality.

(2) The same rule shall apply where the right of selection is left

to a third party.

(3) Where such third party refuses or is, in consequence of

death or other impediment, unable to make the selection, such

selection shall be made by the court, according to the rule laid

down in sub-article (1).

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Where the right of selection is left to the legatee, he may

select the best of the things of the given genus or species existing in

the inheritance: but if there be none, he cannot select one of the

best quality.

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In the case of alternative legacies, the right of selection

shall be deemed to be given to the heir.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where the heir or legatee to whom the right of

selection belongs, has not been able to make such selection, the

right thereof shall vest in his heir.

(2)

The selection, once made, shall be irrevocable.

(3) Even where in the estate of the testator there shall be only

one of the things included in the genus or species, the heir or

legatee having the right of selection, shall not, in the absence of an

express disposition to the contrary, be entitled to select other than

the thing existing in the estate.

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(1) The legatee must demand of the heir possession of the

thing bequeathed.

(2) In the case of immovable property the legatee may demand

the grant of such possession be made by means of a public deed.

(3) Unless the testator shall have otherwise provided the

expenses relative to the deed shall be borne by the legatee.

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It shall not be lawful for the legatee to claim the fruits of,

or interest on the legacy, except from the day on which he shall

have, even by a judicial letter, called upon the heir to deliver or pay

the legacy, or from the day on which the delivery or payment shall

have been promised to him.

Laws of Malta — Chapter 16 — CIVIL CODE

The interest on, or the fruits of, the thing bequeathed,

shall, even in the absence of a judicial intimation, as prescribed in

the last preceding article, accrue in favour of the legatee

immediately upon the death of the testator in any of the following

cases

(a) where the testator shall have expressly so directed;

(b) where the subject of the legacy is a tenement, or a

capital sum, or any other thing producing fruits.

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Where the subject of a legacy is a life annuity or a

pension, such annuity or pension shall commence to run from the

day of the death of the testator.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where the subject of the legacy is a determinate

quantity to be delivered or paid at fixed periods, as every year,

every month or at other periods, the first period shall commence to

run from the death of the testator, and the legatee shall acquire the

right to the whole quantity due for each of the periods, even though

he may have been alive at the commencement only of the said

period.

(2) Nevertheless, the legacy unless it is by way of maintenance

cannot be claimed until after the expiration of the period.

(3) If the legacy is by way of maintenance, it can be claimed at

the commencement of the period.

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(1) The thing forming the subject of the legacy shall be

presumed to have been bequeathed, and shall be delivered, with its

necessary accessories and in the condition in which it shall be on

the day of the death of the testator.

(2) The contrary shall be presumed with regard to

embellishments or to new constructions made in the tenement

bequeathed, or to a tenement of which the testator shall have

enlarged the boundary, including therein new acquisitions.

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(1) Where before the will is made or subsequently, a right

of usufruct, an annuity, or any other perpetual or temporary burden,

shall have been imposed on the thing bequeathed, the legatee shall

receive the thing as so encumbered.

(2) Where the thing bequeathed is charged with a hypothec in

respect of any other debts, the person who is to pay the legacy

shall, unless the testator has otherwise directed, be bound to

disencumber it.

Laws of Malta — Chapter 16 — CIVIL CODE

The expense necessary for the delivery or payment of the

legacy shall be charged to the estate, provided this shall not

prejudice the rights of the persons in whose favour the law reserves

a portion of the hereditary property.

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(1) Where no one of several heirs has been particularly

charged by the testator with the payment of the legacy, all the heirs

shall be liable for the payment thereof, each in proportion to his

share in the succession.

(2) They shall also be liable for the whole, to the extent of the

value of any immovable property of the estate which they hold.

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(1) Where any one of the heirs has been particularly

charged with the payment of the legacy, he alone shall be liable for

such payment.

(2) Where the subject of the legacy is a thing belonging to one

of the co-heirs, the other co-heirs shall, unless a contrary intention

of the testator is shown, compensate such co-heir for its value,

either in cash or in hereditary property, each in proportion to his

share of the inheritance, provided such legacy is not void, in whole

or in part, under articles 696, 697 and 698.

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(1) It shall be lawful for the testator, in bequeathing a

pension or a usufruct, to declare such pension or usufruct as not

liable to attachment under a garnishee order, and even inalienable,

wholly or in part.

(2) Any such declaration, if made in general terms, shall be

operative even where the garnishee order is applied for, or the

alienation is sought to be made or is demanded, in respect of debts

incurred by the legatee after he has commenced to enjoy the legacy.

O F THE R IGHT OF A CCRETION

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Saving the provisions of article 745 and article 866, where

two or more persons have been instituted heirs or named as legatees

conjointly, and any one of such persons predeceases the testator, or

is incapable of receiving, or refuses the inheritance or the legacy, or

has no right thereto owing to the non-fulfilment of the condition

under which he was so instituted or named, the share of such

person, with the obligations and burdens attaching to it, shall

accrue to that of the other co-heirs or co-legatees.

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(1) An institution or a legacy is deemed to be made

conjointly, if it depends upon one and the same disposition, and the

testator shall not have specified the share of each co-heir or co-

legatee in the inheritance or in the thing bequeathed.

(2) The shares are deemed to have been specified, only if the

testator has expressly fixed the share of each. The words "in equal

parts" or "in equal portions" alone shall not operate so as to bar the

right of accretion.

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A legacy is likewise deemed to be made conjointly if a

thing which cannot be divided without injury has been bequeathed

by one and the same will to two or more persons, even separately.

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Where the right of accretion takes place, it shall not be

lawful for the co-heir or the co-legatee to refuse the accrued share,

unless he shall renounce his own original share.

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Where the right of accretion does not take place, the

vacant portion of the inheritance, with such obligations and

burdens as attach to it, shall vest in the heirs-at-law of the testator,

and the vacant portion of the legacy, with such obligations and

burdens as attach to it, shall, where any of the heirs or any legatee

was particularly charged with the payment of the legacy, vest in

such heir or legatee, or, where the inheritance was so charged, in all

the heirs, in proportion to the share of each in the inheritance.

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(1) Where a right of usufruct is bequeathed to two or

more persons conjointly, as provided in articles 738 and 739, the

provisions of article 382 shall apply, even after the acceptance of

the legacy.

(2) Where the usufruct is not bequeathed to such persons

conjointly, the vacant portion shall merge in the ownership.

O F THE R EVOCATION AND L APSE OF T ESTAMENTARY

D ISPOSITIONS

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(1) Any alienation of the thing bequeathed whether in

whole or in part, made by the testator, even though made by way of

sale with the reservation of the power of redemption, or by way of

exchange, shall operate as a revocation of the legacy in regard to

the subject of the alienation, notwithstanding that such alienation

be void, or simulated, or that the thing itself come again to belong

to the testator.

(2) The same rule shall apply if the testator has converted the

thing bequeathed into another in such a manner that it has lost its

previous form and designation.

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(1) The legacy shall lapse if the thing bequeathed has

entirely perished during the lifetime of the testator.

(2) The same rule shall apply if the thing has perished after the

death of the testator, without the agency or fault of the heir, even

though such heir may have been put in default for delay in the

delivery thereof, provided the thing would have equally perished in

the possession of the legatee.

(3) Where several things have been alternatively bequeathed,

the legacy shall subsist, even though there shall remain one only of

such things.

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(1) A testamentary disposition shall lapse, if the person in

whose favour it is made shall not survive the testator.

(2) Nevertheless, the descendants of the heir or legatee shall

succeed in his place to the inheritance or legacy whenever, in case

o f i n t e s t a c y, t h e y w o u l d h a v e b e n e f i t e d b y t h e r u l e o f

representation, unless the testator has otherwise directed, or unless

the subject of the legacy is a right of usufruct, use, or habitation, or

any other right which is of its own nature personal.

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A testamentary disposition shall lapse with regard to the

heir or legatee who renounces it, or who is incapable of taking.

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It shall be lawful for a testator to make provision in his

will for the existence or subsequent birth of children or

descendants, and such provision may, without prejudice to any

right to a share of the reserved portion, distinguish between such

children or descendants in the same manner as he could lawfully

distinguish between children or descendants of whose existence he

is aware or who are already born.

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Where provision is not made in accordance with article

747 and the testator makes disposition by universal or singular title

and passes over any children or descendants, whether or not the

testator was aware of their existence, and whether or not such

children or descendants were born at the time of the making of

dispositions, such dispositions shall nonetheless be valid saving the

right of the children or descendants so passed over to their share of

the reserved portion to which they may be entitled under this Code.

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Repealed by: XVIII.2004.81.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.81.

§ VI. O F S UBSTITUTION AND OF E NTAILS

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(1) It shall be lawful for the testator to substitute another

person for the heir-institute or for the legatee, in the event of such

heir or legatee not being able or willing to accept the inheritance or

the legacy.

(2)

Any such disposition is termed substitutio vulgaris.

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(1) It shall be lawful for any one of the spouses, the other

ascendants, the uncle or aunt, brother or sister, to substitute a third

party in the place of a minor in the event of the latter dying without

issue, before attaining the age of eighteen years, but only with

regard to the property in which such minor shall have been

instituted heir or appointed legatee.

(2) It shall also be lawful for any of the said persons to

substitute a third party in the place of any person with a mental

disorder or other condition, which renders him incapable of

managing his own affairs or insane person, in regard to such

property only as they shall have devised to him, in the event of his

dying with the mental disorder or other condition, whilst still

incapable of managing his own affairs, or in a state of insanity,

without issue.

(3) Any substitution referred to in this article, if made by any one of

the parents or any other ascendant by whom a share of the reserved

portion is due to the heir-institute or legatee, may only include such

portion of the property as the minor, on attaining majority, or the insane

person, or person with a mental disorder or other condition, if of sound

mind at the time of his death, could dispose of.

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It shall be lawful to substitute under the provisions of the

preceding articles, several persons in the place of one, or one in the

place of several.

Laws of Malta — Chapter 16 — CIVIL CODE

Where in the substitution clause only one of the two

contingencies is stated, that is, either that the institute should be

unable, or that he should be unwilling to receive the inheritance or

legacy, the other contingency shall, unless the disponer shall have

stated the contrary, be deemed to be included.

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(1) The substitute shall be bound to perform all such

obligations as may have been imposed on the party for whom he

shall have been substituted, unless it shall appear that the testator

wished to impose such obligations solely on the party called in the

first place.

(2) Nevertheless, such obligations as particularly affect the

person of the heir or legatee shall not, in the absence of an express

declaration to the contrary, be deemed to be operative in regard to

the substitution.

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(1) Where two or more co-heirs or legatees in unequal

shares shall have been reciprocally substituted, the proportion of

shares fixed by the first disposition shall be deemed to be operative

in regard to the substitution.

(2) Where the substitution includes another person in addition

to the persons called in the first place, the evacuated portion shall

vest in all the substitutes in equal shares.

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(1) Entails are prohibited

Provided that entails created before the date of the

commencement of Ordinance No. IV of 1864, hereby repealed,

shall continue to be regulated by the provisions of the law in force

before that date including the provisions contained in Chapter II of

Book IV of the Municipal Code of Malta, commonly called "Code

De Rohan", saving the provisions of Title I of Part II of Book

Second of the Code of Organization and Civil Procedure.

(2) Any provision by which the heir or legatee is required to

preserve and return the inheritance or legacy to a third person shall

be considered as if it had not been written.

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(1) Any provision restraining the heir or legatee from

alienating or from disposing by will, shall, subject to the provisions

of article 736, be considered as if it had not been written.

(2) Nevertheless, it shall be lawful to bequeath the usufruct to

one person, and the nuda proprietas to another, subject, however, to

the provisions of article 331.

(3) It shall also be lawful for a spouse to make in favour of the

surviving spouse a bequest by universal or by singular title,

substituting for him or her another beneficiary in the residue still

existing at the time of the demise of the surviving spouse. In such

case the surviving spouse shall only be restrained from disposing of

any thing contained in the disposition, by will or by title of

donation.

(4)

For the purpose of this article "residue" means and includes

only

(a) immovable property, whether immovable by its nature

or by reason of the object to which it refers; and

(b) all certain and determinate movable property which

can be identified, excluding liquid cash and things

identified only by their species.

(5) An action contesting any disposal made by the surviving

spouse in contravention of sub-article (3) may be instituted during

the lifetime of the surviving spouse, and shall be barred by the

lapse of five years from the opening of succession of the surviving

spouse.

(6) A disposal made by the surviving spouse in contravention

of sub-article (3) shall in the case of immovables be null. In the

case of movable property nullity shall ensue only if the beneficiary

was in bad faith. In any other case action shall only lie for damages

against the surviving spouse or his or her estate.

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Where the usufruct of a thing is left to one person, and the

ownership of the same thing to another person, under the condition

that the latter be still alive at the time of the cesser of the usufruct,

it shall be lawful to substitute a third person in the place of the

person in whose favour the ownership is devised in the event of

such condition not being fulfilled.

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It is not forbidden to institute heirs, or bequeath legacies

under a condition which cannot be fulfilled except at the time of the

death of the heirs or legatees, and to substitute others in their place

in the event of the non-fulfilment of the condition.

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(1) Any perpetual or limited burden by reason of which

the whole usufruct of the inheritance or of the legacy, or a portion

of such usufruct, or any other annuity, is to be given to two or more

persons successively, shall be considered as if it had not been

written.

(2) Nevertheless, it is not forbidden to impose the payment of

an annuity, whether in perpetuity or for a limited time, for the

purpose of creating a sacred patrimony, or of being employed for

the relief of the poor, or in reward for virtue or merit, or for any

other purpose of public utility, even though the disposition be in

favour of persons belonging to a certain class or to certain families.

(3) Sub-article (1) shall not apply to dispositions in favour of

persons called to benefit under a trust or a foundation.

§ VII. O F T ESTAMENTARY E XECUTORS

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It shall be lawful for a testator to appoint one or more

testamentary executors.

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No person who is under a disability to contract

obligations, may be a testamentary executor.

Laws of Malta — Chapter 16 — CIVIL CODE

A minor may not hold the office of testamentary executor

even though with the authority of the parent to whose authority he

is subject, or of his tutor or curator.

Laws of Malta — Chapter 16 — CIVIL CODE

It shall not be lawful for any testamentary executor to

intermeddle with the administration of the estate before he is

confirmed by the court of voluntary jurisdiction of the island in

which the testator resided at the time of his death.

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(1) The court shall not confirm the testamentary executor

before he shall have entered into a recognizance in the records of

the court, with hypothecation of his property to be registered in the

Public Registry, faithfully to carry into effect the will of the

testator, and to render an account of his administration every year

or once only, as the court shall, according to circumstances, direct.

(2) The court may, on the demand of the executor, limit the

amount for which his property is to be hypothecated.

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It shall be in the power of the court, before confirming the

executor to require him to make up an inventory of the property

which he is charged to administer, or, a statement of such property

to be verified by his oath, unless he shall have been exempted from

making such inventory or statement by the persons to whom the

property devolves, wholly or in part.

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Any disposition calculated to exempt the testamentary

executor from the obligation of rendering an account shall be

inoperative.

Laws of Malta — Chapter 16 — CIVIL CODE

The executor may, pending the procedure in confirmation,

perform such acts as cannot without prejudice be delayed, and take

such measures as are necessary for the preservation of the estate.

Laws of Malta — Chapter 16 — CIVIL CODE

It shall be in the power of the said court, at any time, to

grant to the testamentary executor a moderate fee, regard being had

to the value of the estate to be administered by him, unless the

testator himself shall have made provision as to such fee, or the

executor shall have waived his right thereto.

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(1) The testamentary executor, for the purpose of paying

the debts of the estate or of discharging the legacies, may, in the

absence or insufficiency of funds in the estate, collect sums owing

to the estate, or, in default, sell property.

(2) Such sale shall be made by public auction, unless the heirs

agree, or the court, on the application of the executor, allows, that

the sale be made otherwise.

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The heir may prevent the sale by offering the means with

which to pay the debts and discharge the legacies.

Laws of Malta — Chapter 16 — CIVIL CODE

The office of the testamentary executor shall not descend

to his heirs.

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Where the testator has appointed two or more testamentary

executors, they can only act conjointly, unless the testator shall

have authorized them to act even separately, in which case each

shall be responsible for his own act only.

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The expenses incurred by the testamentary executor in the

discharge of his duties shall be borne by the inheritance.

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(1) The testamentary executor may, at any time, renounce

his office, even though he shall have already commenced to act as

executor.

(2)

He may also on good cause shown be removed from office.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where the testator has appointed two or more

executors, and one or more has or have declined to accept the

office, or renounced it, or has or have been suspended or removed

therefrom, the said court may confirm the executor or executors

remaining, and authorize him or them to carry into effect the will as

if the testator had appointed him or them only, provided he or they

be considered fit by the court.

(2) The same rule shall apply in case of the death, absence, or

illness of one or more of the executors.

Laws of Malta — Chapter 16 — CIVIL CODE

In case of the death, absence, renunciation, or illness of

the only executor, or of all the executors-nominate, the execution of

the will shall vest in the heirs, unless the court of voluntary

jurisdiction, with the consent of such heirs, or, the court of

contentious jurisdiction, for just cause on the demand of any

interested party, shall have conferred the office upon another

person.

§ VIII. O F THE O PENING AND P UBLICATION OF W ILLS

Laws of Malta — Chapter 16 — CIVIL CODE

Any person claiming to have any interest in a secret will

may, upon the death of the testator being ascertained, demand the

opening of such will in the manner laid down in the Code of

Organization and Civil Procedure.

Laws of Malta — Chapter 16 — CIVIL CODE

The provisions of the last preceding article shall also

apply in any case where the competent court shall have adjudged

and declared that the testator is, in consequence of his long

absence, to be presumed to have died, as well as in any case where

the testator shall have taken the vows in a monastic order or in a

religious corporation of regulars.

§ IX.O F THE R EVOCATION OF W ILLS

Laws of Malta — Chapter 16 — CIVIL CODE

(1) No person may waive the power of revoking or

altering any testamentary disposition made by him.

(2) Any clause or condition purporting to waive such power,

shall be considered as if it had not been written.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Saving the provisions of article 743 and the articles

following, a will may be revoked, wholly or in part, by a

subsequent will.

(2) It may also be revoked by any other act received by a notary

with the formalities required for the execution of notarial acts,

whereby the testator personally or through an attorney specially

authorized, declares that he revokes his will, wholly or in part.

Laws of Malta — Chapter 16 — CIVIL CODE

The mere withdrawal of a secret will from the notary, or,

in any of the cases referred to in articles 673 and 676 from the

person to whom the will shall have been delivered, or from the

registry of the court, or from the office of the consul wherein it

shall have been deposited, shall operate as an implied revocation of

the will.

Laws of Malta — Chapter 16 — CIVIL CODE

A will which is void cannot have the effect of a notarial

act so as to revoke a previous will.

Laws of Malta — Chapter 16 — CIVIL CODE

Any testamentary disposition which has been revoked, can

only revive by a fresh will.

Laws of Malta — Chapter 16 — CIVIL CODE

Where a subsequent will has not expressly revoked a

previous will or previous wills, it shall annul such only of the

dispositions contained in the previous will or wills as shall be

shown to be contrary to, or inconsistent with, the new dispositions.

Laws of Malta — Chapter 16 — CIVIL CODE

The revocation made by a subsequent will shall be fully

operative even if such subsequent will lapses, by reason of the

predecease or disability of the heir-institute or legatee, or of the

renunciation of the inheritance or legacy.

Sub-title II

O F I NTESTATE S UCCESSIONS

G ENERAL P ROVISIONS

Laws of Malta — Chapter 16 — CIVIL CODE

Where there is no valid will, or where the testator has not

disposed of the whole of his estate, or where the heirs-institute are

unwilling or unable to accept the inheritance, or where the right of

accretion among the co-heirs does not arise, intestate succession

takes place, wholly or in part, by the operation of law.

Laws of Malta — Chapter 16 — CIVIL CODE

Intestate succession is granted in favour of the des-

cendants, the ascendants, the collateral relatives and the spouse of

the deceased, and the Government of Malta, in the order and

according to the rules hereafter laid down.

Laws of Malta — Chapter 16 — CIVIL CODE

In regulating succession among relations, the law takes

into consideration the proximity of the relationship, and does not

consider either the prerogative of the line or the origin of the

property, except in the cases and in the manner expressly provided

for by law.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The proximity of relationship is established by the

number of generations.

(2)

Each generation forms a degree.

(3)

The series of degrees forms the line.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The series of degrees between persons descending the

one from the other is called the direct line.

(2) The series of degrees between persons descending not the

one from the other, but from a common ancestor, is called the

collateral line.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The direct line may be descending or ascending.

(2) The descending direct line connects the ancestor with those

who descend from him.

(3) The ascending direct line connects a person with those from

whom he descends.

Laws of Malta — Chapter 16 — CIVIL CODE

In the direct line, as many degrees are counted as there are

generations, not including the common ancestor.

Laws of Malta — Chapter 16 — CIVIL CODE

In the collateral line, the degrees are counted by the

generations, commencing from one of the relations up to, and

exclusive of, the common ancestor, and then from the latter down

to the other relation.

O F THE C APACITY TO S UCCEED

Laws of Malta — Chapter 16 — CIVIL CODE

Persons who are incapable or unworthy of receiving under

a will, for the causes stated in this Code, are also incapable or

unworthy of succeeding ab intestato.

Laws of Malta — Chapter 16 — CIVIL CODE

Persons who, by fraud or violence, shall have prevented

the deceased from making a will, shall also be, as unworthy,

incapable of succeeding ab intestato.

Laws of Malta — Chapter 16 — CIVIL CODE

The provisions contained in articles 606 and 607 shall

apply to any person who, for the causes stated in the last two

preceding articles, shall have become unworthy of succeeding ab

intestato.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The children or descendants of a person excluded as

unworthy shall not be excluded by reason of the unworthiness of

their parent or ascendant, whether they succeed in their own right

or whether, in order to succeed, they have to stand, under the rule

of representation, in the place of the parent or ascendant so

excluded.

(2) Nevertheless, the father may in no case claim, over such

inheritance, either the usufruct or the administration which the law

grants to parents over the property of their children.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.85.

O F R EPRESENTATION

Laws of Malta — Chapter 16 — CIVIL CODE

Representation operates so as to put the representative in

the place, degree, and rights of the person represented.

Laws of Malta — Chapter 16 — CIVIL CODE

Representation in the descending direct line takes place in

infinitum and in all cases, whether the children of the deceased take

with the descendants of a predeceased child, or whether, all the

children of the deceased having predeceased him, the descendants

stand amongst themselves in equal or unequal degrees.

Laws of Malta — Chapter 16 — CIVIL CODE

Representation does not take place between ascendants

the nearest relation excludes the others.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) In the collateral line, representation is allowed in

favour of children and descendants of brothers or sisters of the

deceased, whether such children or descendants take with their

uncles or aunts, or whether, all the brothers and sisters of the

deceased having predeceased him, the succession devolves to their

descendants in unequal degrees.

(2) If the children or descendants of brothers or sisters stand in

equal degree, they shall all take per capita, without representation.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) In all cases in which representation is allowed, the

partition shall be made per stirpes.

(2) Where in one and the same stock there are several branches,

the sub-partition shall be made per stirpes in each branch; and the

partition among the members of the same branch shall be made per

capita.

Laws of Malta — Chapter 16 — CIVIL CODE

Representation cannot take place in regard to persons who

are alive, but only in regard to persons who are dead, or incapable

of succeeding, or who, by reason of a long period of absence, are,

in virtue of a judgment of the competent court, presumed to have

died.

Laws of Malta — Chapter 16 — CIVIL CODE

It shall be lawful to represent the person whose inheritance

has been renounced.

§ I. O F S UCCESSION BY D ESCENDANTS AND SURVIVING SPOUSE

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Where the deceased has left children or their

descendants and a spouse, the succession devolves as to one moiety

upon the children and other descendants and as to the other moiety

upon the spouse.

(2) The provisions of sub-article (1) shall be without prejudice

to the right of the surviving spouse under articles 633, 634 and 635.

Laws of Malta — Chapter 16 — CIVIL CODE

Where the deceased has left children or other descendants

but no spouse, the succession devolves upon the children and other

descendants.

Laws of Malta — Chapter 16 — CIVIL CODE

Where the deceased has left no children or other

descendants but is survived by a spouse the succession devolves on

the spouse.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Saving the provisions of article 815, children or other

descendants succeed to their parents or other ascendants without

distinction of sex, and whether they are born or conceived in

marriage or otherwise and whether they are of the same or of

different marriages.

(2) They succeed per capita when they are all in the first

degree; they succeed per stirpes when all, or some of them, take by

representation.

§ I I. O F S UCCESSION BY ASCENDANTS AND COLLATERALS

Laws of Malta — Chapter 16 — CIVIL CODE

Where the deceased has left no children or other

descendants, nor a spouse, the succession shall devolve

(a) if there be an ascendant or ascendants and no direct

collaterals: to the nearest ascendant or ascendants;

(b) if there be an ascendant or ascendants and direct

collaterals: one moiety to the nearest ascendant or

ascendants and the other moiety to the direct

collaterals;

(c) if there be no ascendant or ascendants but there be

direct collaterals: to the direct collaterals; and

(d) if there be neither ascendant or ascendants nor direct

collaterals: to the nearest collateral in whatever line

such collateral may be.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) For the purpose of article 812 direct collaterals mean

brothers and sisters, whether of the half or full blood or adopted

and the descendants of predeceased brothers or sisters, of the half

or full blood or adopted.

(2) The brothers and sisters shall succeed per capita and their

descendants per stirpes in terms of articles 804 and 805.

Laws of Malta — Chapter 16 — CIVIL CODE

Succession between collaterals shall not extend beyond

twelfth degree.

Laws of Malta — Chapter 16 — CIVIL CODE

(Deleted by Act XV.2012.24).

§ II I. O F THE RIGHTS OF THE GOVERNMENT

Laws of Malta — Chapter 16 — CIVIL CODE

Where the deceased is not survived by any of the persons

entitled to succeed under the rules laid down in the foregoing

articles, the inheritance shall devolve upon the Government of

Malta.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.86.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.86.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.86.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.86.

Succession to

property of

illegitimate child

dying without issue

or spouse.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.86.

Succession to

property of

illegitimate child

dying without

issue, but survived

by spouse.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.86.

Rights competent

to surviving spouse

by person leaving

children.

Substituted by

XXI.1993.73.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.86.

Rights competent

to surviving spouse

of person dying

without issue but

survived by

ascendants or

illegitimate

children, etc.

Substituted by

XLVI.1973.60.

Amended by

XXI.1993.74.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.86.

Rights competent

to surviving spouse

of person dying

without issue, and

not survived by

ascendants, or

illegitimate

children, etc.

Substituted by

XLVI.1973.61.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.86.

Surviving spouse

to bring into

account property

received from

deceased.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.86.

Where spouses are

separated.

Amended by

XXI.1993.75.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.86.

Rights of

succession

competent to

Government of

Malta.

Amended by

L.N. 148 of 1975.

Sub-title III

P ROVISIONS COMMON TO T ESTATE S UCCESSIONS AND

TO I NTESTATE S UCCESSIONS

§ I.O F THE O PENING OF S UCCESSIONS, OF C ONTINUANCE

OF P OSSESSION IN THE PERSON OF THE H EIR, AND

OF P RESCRIPTION OF CERTAIN A CTIONS

Laws of Malta — Chapter 16 — CIVIL CODE

A succession opens at the time of death, or on the day on

which the judgment declaring that the person whose succession is

concerned is, by reason of his long absence, to be presumed to have

died has become res judicata.

Laws of Malta — Chapter 16 — CIVIL CODE

Where several persons die in a common calamity and it is

impossible to determine who survived the other, they shall, where

any one of them is called to the succession of the other, be

presumed to have died at the same time.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.87.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.87.

Laws of Malta — Chapter 16 — CIVIL CODE

The possession of the property of the deceased is, by

operation of law, transferred, by way of continuation, to the heir,

whether testamentary or an heir-at-law, subject to his obligation of

discharging all the liabilities of the inheritance.

Laws of Malta — Chapter 16 — CIVIL CODE

Where the deceased disposes of a portion only of the

inheritance, and the remaining portion devolves upon the heirs-at

law, possession vests, by operation of law, in the testamentary heir

and in the heir-at-law, in proportion to their respective shares.

Laws of Malta — Chapter 16 — CIVIL CODE

Where any person claiming rights over the property of the

inheritance has taken possession thereof, the heirs in whom

possession vests by law shall be deemed to have been dispossessed

de facto, and may exercise all the actions competent to a legitimate

possessor.

Laws of Malta — Chapter 16 — CIVIL CODE

Where under testate or intestate succession a person

conceived and born out of wedlock succeeds with adoptive children

of the deceased or other children of the deceased who are not so

conceived and born or descendants of such children, or with the

surviving wife of the deceased, the other heirs of the deceased shall

be entitled to pay the share due to the person conceived and born

out of wedlock, either in cash or in movable or immovable property

of the estate, if latter does not object; and in case of opposition by

the latter, the Civil Court – Voluntary Jurisdiction shall, following

an application to that effect by any of the other heirs of the

deceased, decide whether to allow such payment or assignment,

after taking into account personal considerations and those relating

to property.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.88.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.88.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.88.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The action for demanding an inheritance, or a legacy,

or the reserved portion, whether in testate or in intestate

successions, shall lapse on the expiration of ten years from the day

of the opening of the succession.

(2) Nevertheless, with regard to minors, or persons interdicted,

the said action shall not lapse except on the expiration of one year

from the day on which they shall have attained majority, or the

interdiction shall have ceased, as the case may be.

§ II. O F THE A CCEPTANCE AND R ENUNCIATION OF AN

I NHERITANCE

O F THE A CCEPTANCE OF AN I NHERITANCE

Laws of Malta — Chapter 16 — CIVIL CODE

No person is bound to accept an inheritance devolved

upon him.

Laws of Malta — Chapter 16 — CIVIL CODE

An inheritance may be accepted unconditionally, or under

benefit of inventory.

Laws of Malta — Chapter 16 — CIVIL CODE

Where an inheritance devolves upon a person subject to

tutorship or curatorship, or upon a minor, it cannot be accepted by

the tutor or curator, or by the parent exercising parental authority

except under benefit of inventory.

Laws of Malta — Chapter 16 — CIVIL CODE

The acceptance of an inheritance shall retroact as from the

day of the opening of the succession, saving any right which may

have been acquired by third parties in virtue of agreements made in

good faith with the apparent heir.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Acceptance may be either express or implied.

(2) It is express, if the status of heir is assumed either in a

public deed or in a private writing.

(3) It is implied, if the heir performs any act which necessarily

implies his intention to accept the inheritance, and which he would

not be entitled to perform except in his capacity as heir.

Laws of Malta — Chapter 16 — CIVIL CODE

A person who, by a judgment of the competent court, has

been declared to be the heir, or has been condemned expressly in

such capacity, shall be deemed to be the heir with regard to all the

legatees and creditors of the inheritance.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Arrangements made for the funeral, acts of mere

preservation, or of provisional administration, shall not, unless the

status of heir has also been assumed, imply acceptance of the

inheritance.

(2) The provisions of sub-article (1) shall also apply in the case

of judicial proceedings in respect of possessory actions, in which

case the person entitled to succeed shall be considered as de jure

curator of the inheritance in terms of article 886(2).

(3) Sub-article (2) shall only apply if the person entitled to

succeed states in the action that he is acting in his capacity of de

jure curator.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Any donation, sale, or assignment of his rights of

succession by one of the co-heirs, whether in favour of a stranger or

of all or any of his co-heirs, shall imply his acceptance of the

inheritance.

(2)

The same applies -

(a) with regard to a renunciation made, even if

gratuitously, by one of the heirs in favour of one or

more of his co-heirs;

(b) with regard to a renunciation made, even in favour of

all his co-heirs indiscriminately, when such

renunciation is made under an onerous title.

Laws of Malta — Chapter 16 — CIVIL CODE

Where the renunciation is made gratuitously by one of the

co-heirs in favour of all those co-heirs, whether testamentary or

heirs-at-law, upon whom, on failure of the party renouncing, his

portion of the inheritance would have devolved, it shall not imply

acceptance of the inheritance.

Laws of Malta — Chapter 16 — CIVIL CODE

If the heirs do not agree as to accepting or renouncing the

inheritance, the party accepting shall alone acquire all the rights,

and become subject to all the liabilities of the inheritance.

Laws of Malta — Chapter 16 — CIVIL CODE

Where a person to whom a succession has opened dies

without having renounced or accepted it, the right to accept such

succession shall vest in his heirs; and in such case the provisions of

the last preceding article shall also apply to such heirs.

Laws of Malta — Chapter 16 — CIVIL CODE

The heirs who have accepted the inheritance of the person

from whom the right referred to in the last preceding article is

derived, may nevertheless renounce the inheritance devolved upon,

but not yet accepted by such person

Provided that the renunciation of the inheritance of the said

person shall also operate as a renunciation of the inheritance

devolved upon him.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) A person who has accepted an inheritance cannot

impeach the acceptance, unless such acceptance was the result of

violence, or of fraud practised upon him.

(2) Nevertheless, if a will is discovered which, at the time of

acceptance, was unknown to the person accepting, such person

shall not be bound to discharge the legacies bequeathed in such will

beyond the value of the inheritance, saving the reserved portion to

which such person may be entitled.

Laws of Malta — Chapter 16 — CIVIL CODE

The right of accepting a vacant inheritance is prescribed

by the lapse of thirty years.

O F THE R ENUNCIATION OF AN I NHERITANCE

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Renunciation of an inheritance cannot be presumed.

(2) It may only be made by a declaration filed in the registry of

the court of voluntary jurisdiction of the island in which the

deceased resided at the time of his death or by a declaration made

by an act of notary public.

(3) The declaration of renunciation referred to in this article

shall not be operative with regard to third parties except from the

time when it is registered in the Public Registry according to the

provisions of article 330(2).

Laws of Malta — Chapter 16 — CIVIL CODE

The heir who renounces a testate succession forfeits all

rights to the intestate succession

Provided that it shall be lawful for such heir to make, in the

act of renunciation, a reservation in respect of the reserved portion

of the property to which he may be entitled under any of the

provisions of articles 614 to 653.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The heir who renounces is considered as if he had

never been an heir.

(2) Nevertheless, his renunciation shall not operate so as to

deprive him of the right to demand any legacy bequeathed to him.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) In intestate successions, the share of the person

renouncing accrues to his co-heirs.

(2) If the person renouncing is the sole heir, the succession

devolves upon the person next in degree.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) No person may take as the representative of an heir

who has renounced.

(2) If the person renouncing is the sole heir in his degree, or if

all the co-heirs renounce, the children shall take in their own right

and shall succeed per capita.

Laws of Malta — Chapter 16 — CIVIL CODE

In testate successions, the share of the person renouncing

shall devolve upon the co-heirs or the heirs-at-law as provided in

articles 737 and 741.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The creditors of a person who renounces an

inheritance to the prejudice of their rights, may apply to the court

for authorization to accept such inheritance in the place of their

debtor.

(2) In the case referred to in sub-article (1) of this article the

renunciation is annulled not in favour of the renouncing heir, but in

favour of the creditors, and only to the extent of the rights of such

creditors.

(3) It shall be lawful for any of the co-heirs of the person

renouncing to oppose the action of the creditors by paying the sums

due to them, and the co-heir effecting payment shall ipso jure be

subrogated to the rights of the creditors whose claims he has

satisfied.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) An heir who has renounced an inheritance may yet

accept such inheritance provided -

(a) the right of acceptance shall not, in his regard, have

lapsed by prescription; and

(b) the inheritance shall not have been already accepted by

other heirs.

(2) Nevertheless, such acceptance shall not operate so as to

prejudice any right which may have been acquired by third parties

over the property of the inheritance either by prescription, or by

virtue of acts validly made with the curator of the vacant

inheritance.

Laws of Malta — Chapter 16 — CIVIL CODE

The court shall, on the demand of any person interested,

fix the time of one month, which may, on good grounds, be

e x t e n d e d t o a n o th e r m o n t h , w i t h i n w h i c h t h e h e i r w h e th e r

testamentary or heir-at-law shall be bound to declare whether he

accepts or renounces the inheritance; and in default of such

d e c l a r a t i o n w i t h i n t h e s a i d t i m e , o r i g i n a l o r e n l a rg e d , t h e

inheritance shall be deemed to have been renounced.

Laws of Malta — Chapter 16 — CIVIL CODE

Notwithstanding the provisions of the foregoing articles,

the persons entitled to succeed, having the actual possession of the

property of the inheritance, shall, on the lapse of three months from

the opening of the succession, or from the day on which they had

knowledge of the devolution thereof, forfeit the right to renounce

such inheritance, unless they have complied with the provisions

relating to the benefit of inventory; and, they shall be deemed to be

pure and unconditional heirs, even though they claim to be seized

of such property under a different title.

Laws of Malta — Chapter 16 — CIVIL CODE

Any heir who misappropriates or conceals any property

belonging to the inheritance, shall forfeit the right to renounce such

inheritance, and shall, notwithstanding any renunciation remain

pure and unconditional heir.

Laws of Malta — Chapter 16 — CIVIL CODE

Saving other provisions of this Code with regard to

renunciations in contemplation of marriage, it shall not be lawful to

renounce the inheritance of a living person, or to alienate any

eventual rights thereto, except on taking the vows in a monastic

order or a religious corporation of regulars.

Laws of Malta — Chapter 16 — CIVIL CODE

A renunciation made on taking the vows in a monastic

order or a religious corporation of regulars must be made in a

manner that the person renouncing and the order or corporation,

may in no case succeed to the property so renounced.

Laws of Malta — Chapter 16 — CIVIL CODE

It shall, nevertheless, be lawful for the person renouncing

as aforesaid to reserve a life annuity on the property so renounced,

and, in any such case, the order or corporation may, upon the death

of the person renouncing, demand the payment of any amount of

the annuity which shall not have been paid to him provided he shall

have expressly declared the default of payment and the debt is not

barred by prescription.

Laws of Malta — Chapter 16 — CIVIL CODE

The renunciation mentioned in article 872 may be made

even by a minor, provided he has the age required by law for taking

religious vows.

Laws of Malta — Chapter 16 — CIVIL CODE

The renunciation mentioned in article 872 shall be

operative in regard to the persons in whose favour it has been made

even though such persons shall not have been present, and shall

not, up to the time of the opening of the succession to the property

renounced, have accepted such renunciation.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The annulment of the religious vows shall also bring

about the annulment of the renunciation.

(2) Nevertheless, any alienation of the property renounced

which may have been made before the annulment of the vows, shall

remain effectual, saving the right of the person renouncing to claim

an indemnity from such other persons as may be liable, according

to law.

O F THE B ENEFIT OF I NVENTORY

Laws of Malta — Chapter 16 — CIVIL CODE

It shall be lawful for the heir, notwithstanding any

prohibition of the testator, to avail himself of the benefit of

inventory.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) The declaration of an heir that he does not intend to

assume the status of heir except under the benefit of inventory shall

be made in the registry of the court of voluntary jurisdiction of the

island in which the deceased resided at the time of his death, or in

which the person whose succession is concerned has taken the

vows in a monastic order or religious corporation of regulars.

(2) Where the opening of the succession has taken place in

virtue of a judgment declaring that, on account of a long period of

absence, the person whose succession is concerned is to be

presumed to have died, the said declaration shall be made by the

heir in the registry of the court of the island in which such

judgment shall have been given.

Laws of Malta — Chapter 16 — CIVIL CODE

The declaration aforesaid shall be ineffectual if it is not

preceded or followed by an inventory of the property of the

inheritance in accordance with the provisions contained in the Code

of Organization and Civil Procedure.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) If among several heirs one is willing to accept the

inheritance under the benefit of inventory, and one or more without

such benefit, the inventory must be made.

(2) In any such case, it shall be sufficient that the declaration

referred to in article 878 be made by one only.

(3) The benefit is only competent to the heir making the

declaration.

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The heir having the actual possession of the property of

the inheritance, is bound to make up the inventory within three

months from the day of the opening of the succession, or from the

day on which he knew that the inheritance devolved upon him.

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Where the heir has not, within the first three months,

commenced the inventory or has not completed it within the said

time, or within such further time as may have been allowed to him,

he shall be deemed to have accepted the inheritance without the

benefit of inventory.

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When the inventory is completed, the heir who has not yet

made the declaration of accepting the inheritance, shall be allowed

t h e t i m e o f f o r t y d a y s , to b e r e c k o ne d f r om t h e d a y o f t he

completion of the inventory, to deliberate whether he would accept

or renounce the inheritance; and if, within the said time, the heir

has not made in the registry of the said court a declaration

renouncing the inheritance, or accepting it under the benefit of

inventory, he shall be deemed to have accepted it under the benefit

of inventory.

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(1) Where any claim is brought against an heir who has

not the actual possession of the property of the inheritance and has

not intermeddled with it, the times fixed in articles 881, 882 and

883 for making up the inventory and for deliberating shall only

commence to run from a day to be fixed by the court.

(2) Where no claims are brought against such heir, he shall

continue to have the right to make up the inventory until such time

as the right of accepting the inheritance shall not have lapsed by

prescription.

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Minors and persons interdicted shall not be deemed to

have forfeited the benefit of inventory except on the expiration of

one year from the day on which they shall have attained majority,

or the interdiction shall have ceased, as the case may be, unless,

within such time, they shall have complied with the provisions of

the foregoing articles.

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(1) During the continuance of the time allowed for

making up the inventory and for deliberating, the person entitled to

succeed is not bound to assume the status of heir.

(2) Nevertheless, such person shall be considered as curator de

jure of the inheritance, and, as such, he may be sued as representing

the inheritance to answer claims brought against it.

(3) If such person fails to appear, the court shall appoint a

curator to represent the inheritance in the proceedings.

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Where in the estate there are things which cannot be

preserved, or the preservation of which entails a considerable

expense, the heir may, during the continuance of the said times,

obtain from the court of voluntary jurisdiction, or, in case of

opposition, from the competent court, leave for such things to be

sold in such manner as the court shall deem expedient

Provided that the heir shall not by reason of any such

procedure be deemed to have accepted the inheritance.

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Where the heir renounces the inheritance before the

expiration of the times, original or enlarged, referred to in the

foregoing articles, any lawful expense incurred by him up to the

time of the renunciation, shall be at the charge of the inheritance.

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An heir guilty of having fraudulently omitted to include in

the inventory property belonging to the inheritance, shall forfeit the

benefit of inventory.

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The effect of the inventory is -

(a) that the heir shall not be liable for the debts of the

inheritance beyond the value of the property to which

he succeeds;

(b) that he may free himself from the payment of the debts

by giving up all the property of the inheritance to the

creditors, the legatees, and even to the co-heir who

does not similarly elect to give up the property;

(c) that his own property is not intermixed with the

property of the inheritance, and that he shall retain his

right to enforce the payment of his own claims against

the inheritance.

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(1) The heir who enters upon inventory shall be bound to

administer the property of the inheritance, and to render an account

of his administration to the creditors and the legatees.

(2) He cannot be compelled to satisfy claims out of his own

property, except when he has been put in default to produce his

account, and has not yet fulfilled this obligation.

(3) After the liquidation of the account, he cannot be compelled

to pay out of his own property except to the extent of the balance

which results to be due by him.

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The heir who enters upon inventory shall not in his

administration, be answerable except for gross negligence.

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The creditors and the legatees may demand that a time be

assigned to the heir for rendering his account.

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Where the heir to whom the reserved portion would be

due, neglects to make up the inventory, he shall forfeit the right to

cause the donations or legacies made in favour of any person, other

than a co-heir, to be reduced.

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(1) The heir who enters upon inventory, shall, upon the

demand of any creditor or other person interested give sufficient

security for the value of the movable property included in the

inventory, for the fruits of the immovable property, and for any

balance of the proceeds of the sale of the immovable property

which may remain after satisfying the claims of the creditors of the

inheritance.

(2) Where the heir fails to give such security, the court shall

give such directions as it may deem proper in order to safeguard the

rights of the interested parties.

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It shall not be lawful for the heir who enters upon

inventory to pay out any legacy before satisfying the creditors who,

prior to the publication of the inventory, shall have, by a judicial

letter or other act, given him due notice of their claims, and those

whose claims are registered in the Public Registry.

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(1) When the creditors mentioned in the last preceding

article have been satisfied, the heir who enters upon inventory shall

pay such other creditors as may appear, and the legatees, in the

order of their application for payment.

(2) Nevertheless, even in such case, the said heir cannot pay a

legacy if, before effecting payment thereof, notice of a debt due by

the estate is given to him.

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The heir who enters upon inventory shall, in paying the

debts registered in the Public Registry, and those of which he had

received notice at the time of payment, and in retaining any amount

in respect of any debt due to himself by the estate, observe the

order of the privileges or hypothecs securing such debts.

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Any creditor to whose prejudice the heir shall have paid

other creditors or legatees can exercise his remedy both against the

heir as well as against the creditors or legatees who have been paid.

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(1) Any creditor appearing after the whole of the estate

has been paid out in the discharge of other debts, or of legacies,

may only exercise his remedy against the legatees.

(2) Such action is prescribed by the lapse of three years to be

reckoned from the date of the last payment.

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The provisions of the last preceding article shall not

operate so as to bar the exercise by any unpaid creditor of any

action competent to him against the possessor of any immovable

property hypothecated in security of the debt due to such creditor.

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The expenses of the inventory and of the account shall be

at the charge of the inheritance.

O F V ACANT I NHERITANCE

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An inheritance, until it is accepted, shall be deemed to be

vacant: and, on the demand of any person interested, the court

shall, saving the provisions of article 886, appoint a curator, as

provided in the Code of Organization and Civil Procedure.

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(1) The curator of a vacant inheritance shall, first of all,

make up an inventory thereof.

(2) The curator shall exercise and prosecute all actions

pertaining to the inheritance: he shall answer all claims brought

against it, and shall administer the property thereof, subject to the

obligation of depositing any money which may be found in the

in h e r it a nc e , o r t h e p r o c e e d s o f t he s a l e of a n y m o v a b l e o r

immovable property, and of rendering an account to the person

entitled to demand it.

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The provisions of the last preceding article shall not apply

to any curator appointed solely for the purposes of article 929 of

the Code of Organization and Civil Procedure.

§ III. O F P ARTITION

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(1) It shall at all times be lawful to demand the partition

of an inheritance, notwithstanding any prohibition of the testator.

(2) Nevertheless, where all the heirs-institute are minors, or

where any one of such heirs is a minor, it shall be competent to the

testator to restrain the partition of the inheritance amongst the heirs

until the expiration of one year from the day on which the youngest

of them shall have attained his majority.

(3) It shall also be lawful, by a will, to suspend the partition for

a time not exceeding five years, even though no one of the heirs is a

minor. Any disposition suspending the partition for a longer time,

shall not be operative in regard to the time exceeding five years.

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The provisions contained in Sub-titles II and III of Title V

of Part 1 of Book Second of this Code and in articles 908 to 912

shall be observed in the partition of an inheritance.

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When the parties do not agree upon the choice, the court

shall appoint a person to draw up a general statement of the

property, to make up the respective shares of the inheritance, and to

fix what each co-partitioner is to receive.

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Any property which, at the time of the opening of the

succession of a person leaving children or other descendants from

two or more marriages, is found in the estate of such person, shall

be presumed, in the interest of the children or descendants of the

previous marriage, to have existed therein before the celebration of

the subsequent marriage, unless the contrary is made to appear

either by means of an inventory made prior to such subsequent

marriage in the manner laid down by the Code of Organization and

Civil Procedure, or by any other means.

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Each of the co-heirs shall, according to the provisions of

articles 913 to 938 collate any donation which may have been made

to him, and any sum which may be due by him.

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After such collation or withdrawals are effected, the estate

shall be divided into as many equal shares as there are heirs or

stocks taking part in the partition.

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(1) Where any of the co-heirs has, under an onerous title,

assigned his rights over the inheritance to any person, not being a

co-heir, the other co-heirs or any of them may, even if the assignee

is a relation of the deceased, exclude him from the partition by

reimbursing to him the price of the assignment, the expenses

incurred on the occasion of such assignment, and the interest on the

the assignor.

(2) The right competent to the co-heirs as aforesaid shall lapse

at the expiration of one month from the day on which notice of the

assignment shall have been given to the co-heirs, unless within that

time they shall have declared their intention to exercise such right.

(3) Where any of the co-heirs shall have exercised such right,

the other co-heirs may avail themselves thereof, provided they shall

declare their intention to do so within fifteen days from the notice

given to them.

(4) Any such notice or declaration shall be given or made by

means of a judicial act.

§ IV.O F C OLLATION

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(1) Children and descendants only, on succeeding to the

inheritance of an ascendant, whether under a will or ab intestato,

s h a l l i m p u t e , i n t h e i n t e r e s t s o n l y o f t he o t he r ch i l d r e n o r

descendants, being co-heirs, the value of everything they may have

received from the deceased by donation, directly or indirectly,

unless the donor shall have otherwise directed.

(2) The provisions of this article shall apply even though the

children or descendants enter upon inventory.

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Exemption from collation may be granted either by the

same deed containing the donation, or by a subsequent deed having

the formalities requisite for the validity of donations or wills.

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It shall not be lawful for the child or descendant,

notwithstanding an express exemption from the obligation of

collation, to retain the donation except to the extent of the

disposable portion, and any excess shall be subject to collation.

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An heir who renounces a succession, may, nevertheless,

retain the donation, or claim the legacy bequeathed to him, to the

extent of the disposable portion, saving, where such heir demands

the reserved portion due to him by law, the provisions of article

620(4).

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A donee who was not the heir presumptive at the time of

the donation, but who, at the time of the opening of the succession,

is entitled to succeed, shall be bound to collate the value of the

things given to him, unless the donor shall have exempted him from

such obligation.

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(1) Any donations made to the descendant of a person

entitled to succeed at the time of the opening of the succession shall

in all cases be deemed to be made without the obligation of

collation.

(2) The ascendant, on succeeding to the donor, shall not be

bound to collate such donations.

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(1) The descendant succeeding in his own right to the

donor, shall not be bound to collate the value of the things given to

his ascendant, even though he may have accepted the inheritance of

such ascendant.

(2) Where, however, the descendant succeeds by right of

representation, he shall be bound to collate the value of the things

given to his ascendant, even though he may have renounced the

inheritance of such ascendant.

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(1) Any donation made to the spouse of a person entitled

to succeed shall be deemed to be made with exemption from

collation.

(2) Where the donation is made conjointly to both spouses, and

only one of them is entitled to succeed, the latter shall collate his

portion of the donation.

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Collation is only due to the inheritance of the donor.

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Collation is due for what has been disbursed by the

deceased for providing a dowry to any of his female descendants,

or for making any donation on the occasion of marriage, or for

providing any descendant with a sacred patrimony, or for procuring

for him an ecclesiastical benefice, or for setting him up in any

employment or business, or for paying his debts or a benefit under

a foundation or a trust.

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All that which is left by will shall not, in the absence of a

disposition to the contrary, be subject to collation, saving the

provisions of article 938.

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The expenses of maintenance, education, and instruction,

the ordinary expenses on the occasion of weddings, and customary

presents, are not subject to collation.

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Any profits which may have been derived from

agreements entered into with the deceased shall likewise not be

subject to collation, provided such agreements did not, at the time

they were entered into, confer any indirect advantage.

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Nor shall any collation be due in respect of any special

partnership entered into, without any fraud, between the deceased

and one of his heirs.

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The fruits of, and the interest on things subject to

collation, shall only be due from the day of the opening of the

succession.

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Any pension or annuity which the donor shall have bound

himself to pay to the donee during the lifetime of the donor himself

whether such pension or annuity has already been paid or is still

due, and any grant of any annuity, or of interest on any capital, or

of the fruits of any other thing to be received by the donee during

the lifetime of the donor, shall not be subject to collation.

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(1) Collation is only due by a descendant, being a co-heir,

to his co-heir as provided in article 913.

(2) Saving the provision of article 938, collation is not due to

any legatee or creditor of the estate, unless the donor shall have

otherwise directed.

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(1) Subject to the provisions of the following sub-articles

collation is made by imputing to the share of the donee the value of

the thing at the time of the opening of succession.

(2) Where the donated thing consists of movables consumable

by use or articles of clothing or articles intended for the domestic

use of the donee, no collation shall be due.

(3) Where the thing has been alienated by onerous title by the

donee, the value to be collated shall be the consideration received

by the donee for the thing alienated or the value of the thing at the

time of alienation whichever value is higher.

(4) Where the thing has perished by a fortuitous event, without

any fault of the donee and without the donee obtaining any

compensation for the loss of the thing, no collation shall be made.

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(1) In all cases the donee shall be allowed the expenses

with which he has improved the immovable, to the extent of the

increase in value produced thereby, regard being had to the time of

the collation.

(2) He shall also be allowed the necessary expenses incurred by

him for the preservation of the immovable, even though such

immovable may not have been improved thereby.

(3) The donee shall, on the other hand, be bound to account for

any deterioration caused through his fault, which may have

diminished the value of the property.

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Repealed by: XVIII.2004.100.

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If the donor has exempted the donee from the obligation of

collation, and the donation exceeds the disposable portion, the

collation of the overplus shall be made in accordance with the rules

laid down in article 653.

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Repealed by: XVIII.2004.100.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.100.

Laws of Malta — Chapter 16 — CIVIL CODE

Repealed by: XVIII.2004.100.

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(1) Notwithstanding the provisions of articles 923 and

930, where the donee or legatee entitled to the reserved portion,

sues for the abatement of any disposition made in favour of a

donee, a co-heir, or a legatee even if a stranger, on the ground that

such disposition exceeds the disposable portion, he shall impute to

the reserved portion any donation or legacy made to him, unless he

shall have been expressly exempted therefrom.

(2) Any such exemption shall not operate to the prejudice of a

prior donee.

(3) Any other thing which, according to the rules laid down in

the foregoing articles, is not subject to collation, shall likewise be

exempted from being brought into account.

§ V.O F THE P AYMENT OF D EBTS

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(1) The co-heirs shall contribute among themselves to the

payment of the debts of the inheritance in such proportion and

manner as shall have been established by the testator.

(2) Where the deceased has not made a will or has not given

any directions as to the apportionment of the debts, the co-heirs

shall contribute to the payment of such debts in proportion to their

respective share in the inheritance.

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(1) In all cases, with respect to the creditors, each of the

heirs shall be personally liable for the debts of the inheritance, in

proportion to his share.

(2) Nevertheless, where any one of the co-heirs possesses

property charged with a hypothec in security of the debt, he shall,

with regard to such property, be liable ex hypotheca for the whole,

saving his right of relief against the other co-heirs.

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(1) A co-heir who, owing to a hypothec, has paid more

than his share of a common debt, cannot seek relief against the

other co-heirs beyond the share due personally by each of them,

even though in paying the debt he shall have caused himself to be

subrogated to the rights of the creditor.

(2) A co-heir, however, who, by entering upon inventory, has

retained the right of demanding the payment of a debt due to him

personally, may, like any other creditor, demand the payment of

such debt, deducting therefrom the share payable by him as co-heir.

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Where any of the co-heirs is insolvent, his share of the

hypothecary debt shall be apportioned pro rata among all the other

co-heirs.

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The creditors of the inheritance, and the legatees may

demand the separation of the estate of the deceased from that of the

heir as provided in articles 2096 to 2106.

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The legatee is not bound to pay the debts of the

inheritance; saving in favour of the creditors the hypothecary

action on the property bequeathed, where competent, and saving

also the exercise of the said benefit of the separation of estates.

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The legatee who has paid a debt for which the immovable

bequeathed to him was hypothecated, shall be subrogated to the

rights of the creditor against the heirs.

§ VI. O F THE E FFECTS OF P ARTITION AND OF W ARRANTY OF

S HARES

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Each co-heir is deemed to have succeeded alone and

directly to all the property comprised in his share, or come to him

by licitation, and never to have had the ownership of the other

hereditary property.

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(1) The co-heirs are respectively warrantors towards each

other against molestations and evictions but only if such

molestations and evictions result from a cause existing previously

to the partition.

(2) Such warranty ceases, if the co-heir suffers eviction

through his own fault.

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The co-partitioners may stipulate that they shall not be

liable to any warranty; and in such case the provisions of articles

1411 and 1412 shall apply.

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(1) Each of the co-heirs is personally bound, in

proportion to his share of the inheritance, to indemnify his co-heir

for the loss caused by the eviction.

(2) Where any of the co-heirs is insolvent, the portion for

which he is liable shall be apportioned in the proportion stated in

sub-article (1) of this article, between the warrantee and all the

solvent co-heirs.

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(1) The heirs are respectively warrantors towards each

other in regard to the solvency of the debtors of the inheritance.

(2) Such warranty shall only be operative during the time

required for the necessary proceedings for the recovery of the debt.

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The warranty in regard to the solvency of the debtor of an

annuity shall not last beyond the five years following the partition.

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There shall be no warranty against the insolvency of the

debtor where such insolvency has occurred after the partition.

§ VII. O F P ARTITIONS MADE BY THE F ATHER, THE M OTHER, OR

OTHER A SCENDANTS AMONG THEIR D ESCENDANTS.

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It shall be lawful for the any one of the parents or any

other ascendant to divide and distribute his or her property among

his or her children and descendants, including in such partition

even the non-disposable portion.

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(1) Any such partition may be made by an instrument

inter vivos or by a will, with the formalities, and under the

conditions and rules prescribed for donations and wills.

(2) Where such partition is made by an instrument inter vivos,

it may only include present property.

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Where the partition shall not have included all the

property left by the ascendant at the time of his death, such

property as was not included shall be divided according to law.

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(1) Any partition which is not made among all the

children existing at the time of the opening of the succession and

the descendants of predeceased children entitled to succeed shall be

null in toto.

(2) In any such case, both the children or descendants who

were not comprised in the partition, as well as those among whom

such partition was made, may demand a fresh partition.

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A partition made by an ascendant may be impeached if it

is made to appear from such partition or from any other

dispositions made by the ascendant that the reserved portion of any

one of the persons among whom the partition of the property was

made has been prejudiced.

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The nullity of the partition shall not operate so as to

invalidate the dispositions in execution of which the partition has

been made, even though a stranger may have benefited by the act of

partition.

§ VIII. O F CROSS-BORDER SUCCESSIONS

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For the purposes of this Sub-title

"cross-border succession" includes a succession wherein one or

more of the following may occur

(a) the deceased held property or assets in more than one

country; or

(b) the deceased was at the time of his death habitually

resident in a country other than the country of which

he was a national; or

(c) the deceased made a disposition of property upon

death in a country other than the country of which he

was a national; or

(d) the beneficiaries of the succession are habitually

resident or are nationals in more than one country;

"European Certificate of Succession" means the certificate

referred to in Chapter VI of the Succession Regulation;

"Succession Regulation" means Regulation (EU) No. 650/2012

of the European Parliament and of the Council of 4 July 2012 on

jurisdiction, applicable law, recognition and enforcement of

decisions and acceptance and enforcement of authentic instruments

in matters of succession and on the creation of a European

Certificate of Succession, including any future amendment to the

said Regulation.

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The provisions of the Succession Regulation shall apply to

cross-border successions from 17 August 2015 onwards.

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(1) The Civil Court (First Hall) shall be the competent

court to deal with applications for a declaration of enforceability

pursuant to Articles 45, 60 and 61 of the Succession Regulation.

(2) In its decision on an application for a declaration of

enforceability, the court shall order the Registrar of Courts to cause

a copy of its decision to be served on the applicant pursuant to

Article 49(1) of the Succession Regulation. The court shall indicate

the manner in which such service is to take place.

(3) The applicant shall serve the decision on an application for

a declaration of enforceability on the party or parties against whom

enforcement is sought pursuant to Article 49(2) of the Succession

Regulation.

(4) The competent court in Malta to deal with appeals against

decisions on such applications in accordance with Article 50 of the

Succession Regulation shall be the Court of Appeal as constituted

in accordance with article 41(1) of the Code of Organization and

Civil Procedure.

(5) An appeal against a decision of the Civil Court (First Hall)

on an application for a declaration of enforceability in accordance

with Article 50 of the Succession Regulation shall be made by

means of an application and shall be lodged within twenty days

which shall commence to run as follows

(a)

in the case of an appeal by the applicant, from the date

when the decision is brought to his notice in

accordance with sub-article (2); and

(b) in the case of an appeal by the other party, from the

date when the decision is served upon such party in

accordance with sub-article (3).

(6) The provisions of Title IV of Book Third of the Code of

Organization and Civil Procedure shall apply to decisions given by

the Court of Appeal on an appeal from a decision on a declaration

for enforceability.

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Without prejudice to the provisions of article 958E(3) and

(4), the competent authorities in Malta to issue a European

Certificate of Succession pursuant to Article 64 of the Succession

Regulation shall be the Civil Court (Voluntary Jurisdiction Section)

and notaries having a warrant to exercise their profession in

accordance with the Notarial Profession and Notarial Archives Act.

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(1) The Civil Court (Voluntary Jurisdiction Section)

shall be competent to issue a European Certificate of Succession in

all cases.

(2) A notary may only issue a European Certificate of

Succession where all the beneficiaries of the succession are in

agreement on the contents of the certificate and have expressed

their consent in writing to the notary to proceed with the issue of

the certificate.

(3) A notary shall not issue a European Certificate of

Succession

(a) where an application for the issue of such a certificate

concerning the succession of the same person has been

made to the Civil Court (Voluntary Jurisdiction

Section) prior to the issue of a certificate;

(b) where the agreement of all the beneficiaries of the

succession in accordance with sub-article (2) has not

been attained; or

(c) where the notary is aware that there is a dispute

concerning the inheritance or estate or parts of the

estate of the deceased.

(4) In the cases referred to in sub-article (3), the notary or an

advocate may, on the request of any person referred to in Article

63(1) of the Succession Regulation, make an application to the

Civil Court (Voluntary Jurisdiction Section) on behalf of such

person for the issue of a European Certificate of Succession.

(5) For the purposes of this article, "beneficiaries of the

succession" means the known heirs and legatees of the succession,

and if any, the testamentary executors.

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Upon receipt of an application for a European Certificate

of Succession in the form prescribed in Article 65 of the Succession

Regulation, the issuing authority shall register the application with

the Director of the Public Registry by means of a note of enrolment

within seven days from date of receipt of the application.

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If it shall appear from the contents of the application, or

from the examination, or from the information obtained, that any

third party is interested in the matter, the issuing authority shall

order the application to be served on such interested party.

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(1) In examining the application, the Civil Court

( Vo l u n t a r y J u r i sd i c t i o n S e c t i o n ) s h a l l h a v e a l l t h e p o w e r s

mentioned in Part II of Book Second of the Code of Organization

and Civil Procedure.

(2) If the application involves a foreign law, it shall be lawful

for the court to appoint one or more persons who is suitably

qualified on account of his knowledge or experience to produce a

reasoned opinion in writing, to give expert evidence as to the law of

any other foreign state.

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(1)

Every application for a European Certificate of

Succession and every European Certificate of Succession issued

shall be preserved and registered by the issuing authority. The

notary shall also be bound to preserve with the Certificate the

consent in writing mentioned in article 958E(2).

(2) If the application has been filed before the Civil Court

(Voluntary Jurisdiction Section), the application and the certificate

shall be kept at the Registry of the Court.

(3) The registration shall be made in the name of the deceased

person whose succession is being determined by means of the

European Certificate of Succession.

(4) Regular indexes shall also be kept for all applications and

issued certificates.

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(1) The issuing authority shall issue one or more

certified copies of the European Certificate of Succession to the

applicant and to any person showing a legitimate interest in the

succession of the deceased. In all cases, the issuing authority shall

keep a list of the persons to whom the certified copies have been

issued. Such list shall be made accessible to any person showing a

legitimate interest.

(2) The issuing authority shall, within fifteen days from date of

issue of the Certificate, file a note of enrolment with the Director of

the Public Registry who shall register the European Certificate of

Succession accordingly.

(3) The note of enrolment shall only contain the date and nature

of the act, the name of the deceased, the designation of the issuing

authority and the date of issue of the Certificate.

(4) Any rectification, modification or withdrawal of the

Certificate carried out by the issuing authority shall also be

registered with the Director of the Public Registry by means of note

of enrolment within fifteen days from the date of rectification,

modification or withdrawal of the Certificate.

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(1) For the purposes of Article 72 of the Succession

Regulation, decisions of the issuing authority pursuant to Article

67, Article 71 and point (a) of Article 73(1) of the Succession

Regulation may be challenged by means of a sworn application in

the manner contemplated in the Code of Organization and Civil

Procedure. The sworn application must be brought before the Civil

Court (First Hall) which shall be the competent judicial authority

for this purpose.

(2) The applicant shall cause a copy of the sworn application to

be served on any person having an interest therein, who shall have

twenty days within which to file a reply.

(3) An appeal against a judgment of Civil Court (First Hall)

pursuant to sub-article (1) shall be made by means of an application

to the Court of Appeal and shall be lodged within twenty days from

the date of judgment.

(4) The mode of procedure for appeal as contemplated in the

Code of Organization and Civil Procedure shall, mutatis mutandis,

apply.

Title IIIA

O F TRUSTS AND THEIR EFFECTS

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(1) Property under trusts shall be regulated by the special

law on trusts and to the extent applicable, the rules of this Code

relating to trusts.

(2)

(a) Transactions relating to property including -

(i)

the settlement of property under trusts, even

when effected by unilateral declaration or

resulting from a judgement or order of a court;

(ii) the distribution, application, or advancement of

property by a trustee to a beneficiary;

(iii) the reversion of property to a settlor or his estate

when a trust fails or is terminated;

(iv) the assignment, vesting or transfer of property

under trusts from a trustee to another trustee

under the same trusts,

shall be subject to the special laws relating to trusts

and their effects when such transactions arise by

operation of law or are carried out in the form and

manner required by applicable law.

(b) When such transactions are intended to transfer the

ownership or other rights to or in property from one

person to another, such transactions shall comply with

all applicable requirements for the transfer of

ownership of such property, including the provisions

of article 996 when applicable, and when so carried

out shall -

(i)

be effective modes of transfer of ownership or

other rights to or in such property;

(ii) result in the creation or termination of legally

enforceable interests in or to such property in

favour of such persons as provided by the

special laws relating to trusts; and

(iii) be operative against third parties.

(c) The sole consideration for the validity of such

transactions may be the imposition or assumption, the

performance, or the termination, as the case may be, of

legally enforceable obligations on or by a trustee in

relation to such property.

(3) A trustee may validly dispose of and transfer trust property

to third parties notwithstanding any right of reserved portion

arising out of the application of articles 615 to 653 and the other

provisions of this Code relating to reduction of trust property.

(4) In any case where, after the death of the settlor, the trustee

is formally notified of a claim for the reserved portion in

circumstances where trust property is to be sold, the trustee shall

hold on trust for the benefit of any claimant of such right a sum in

money based on the net transfer value of the property at the time of

transfer until the claim for the reserved portion is determined or

otherwise lapses.

(5) If trust property subject to a claim for the reserved portion

or, where it has been sold, the proceeds thereof, have already been

distributed to any beneficiary, the person entitled to the reserved

portion claim may be made against such beneficiary as though he

were an heir, legatee or donee as the case may be, and if there

remains any property under such trusts, proportionately between

the trust property and the beneficiary.

(6) The trustee’s obligation to retain the value as stated in sub-

article (4) shall operate for a peremptory period of five years from

the date of death of the decujus. This shall not prejudice the right of

any claimant with respect to other property forming part of the

inheritance but not settled in trust.

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(1) Trusts for the benefit of a person who is not capable

of receiving property, whether by testamentary disposition or

donation, under the provisions of this Code, absolutely or more

than as permitted by this Code, are subject to reduction in full or

for the excess in accordance with this article

Provided that in case of members of monastic orders or

religious corporations of regulars the provisions of article 611 shall

apply to trusts in favour of such persons mutatis mutandis.

(2) Subject to the provisions of article 6B of the Trusts and

Trustees Act, except in cases where the trustee exercises a power of

variation or otherwise acts so as to be in conformity with the

provisions of this Code, trust settlements shall be reduced to the

portion permitted by law if at the time of the opening of succession

of the settlor they are found to exceed the disposable portion of his

estate

Provided that when trust property is reduced, the excess

property shall be held by the trustee absolutely for the heirs of the

settlor or for the benefit of the person entitled thereto as the case

may be.

(3) When the beneficiary entitled to property which is in excess

of what is permissible at law is a spouse of the settlor, such excess

property shall be held under separate trust for use and enjoyment of

fruits for the lifetime of such spouse and subject to the terms of the

trust, thereafter for the heirs of the settlor absolutely.

(4) The rules laid down in article 621 and in articles 647 to

653, relating to the reduction of testamentary dispositions, shall be

observed with regard to the reduction of trust settlements, subject

to the provisions of this Title.

(5) The reduction of a settlement can only be demanded by

those for whose benefit the law has reserved a portion of the

property of the deceased, and by their heirs or other persons

claiming under them and -

(a) saving article 1240, such persons cannot waive such

right during the lifetime of the settlor, whether by an

express declaration or by consenting to such

settlements;

(b) donees, legatees or creditors of the deceased cannot

demand the reduction of settlements or benefit by it;

(c) trusts forming part of a commercial transaction cannot

be reduced in any manner until the completion of the

commercial transaction, after which the residual

property shall be subject to the rules stated in this

article.

(6) No reduction of settlements can take place until the value of

all the property disposed of under any will has been exhausted and

when such reduction takes place, it shall be made commencing with

the last settlement and so on successively, from the last to the

previous settlements.

(7) The right arising upon a reduction of trust property is to

receive value and there shall be no right to restitution of property in

kind.

(8) To the extent not already distributed prior to notice of a

claim, the trustee shall restore the fruits of such part of the

settlement which exceeds the disposable portion from the day of

the opening of succession of the settlor if the action for reduction

has been brought within the year, otherwise from the day of the

demand. In the case referred to in article 958A(4), the claimant

shall be entitled to interest on the value retained for his benefit at

the rate paid by banks on savings accounts from the date of the

notification of his claim on the trustee or from the date of receipt of

proceeds by the trustee whichever is the later.

(9) Saving the provisions of the Trusts and Trustees Act, unless

the terms of the trust expressly exclude such effects

(a) a person claiming the reserved portion from a trustee,

the heirs or any other person, in relation to property

settled in trust, shall lose any benefit under the trust;

and

(b) the provisions of article 620(4) shall apply in relation

to any gains received under the terms of the trust.

(10) Where the benefit to the beneficiary consists in the use and

enjoyment of property and the enjoyment of fruits therefrom or a

life annuity and it appears that the value of the trust fund exceeds

the disposable portion of the estate of the settlor, the persons

entitled to the reserved portion may claim either -

(a) the reserved portion and lose all benefits under the

trust and any will, if any; or

(b) receive from the trustee after the death of the said

beneficiary and notwithstanding any terms of the trust,

an amount equal to the said reserved portion and

interest at 5% per annum, without compounding, up to

the value of the trust property remaining on such event

and in such case shall not be entitled to any benefits

under the will or the trust. Any further remainder of

trust property shall thereafter be applied according to

the terms of the trust; or

(c) opt not to claim and enjoy all benefits under any trust

and any will.

(11) When, in the case contemplated in the preceding sub-

article, the beneficiary is subject to a mental or physical disability

which renders him incapable of sustaining himself, if it appears to

the trustee that the trust property is not susceptible of division, sale

or reduction to fulfil the claims of a person entitled to the reserved

portion in terms of sub-article (10)( a ) without materially

prejudicing the interests of the said beneficiary, the trustee may

apply to the Court and the Court may order that the property not be

sold, divided or reduced until the death of the said beneficiary.

Furthermore, and in such case -

(a) the beneficiary shall not be entitled to demand the

reduction of the trust settled in his favour and claim

the reserved portion from the trustee or from the heirs

or any other person except that if the property settled

in trust is not equal to or more than the reserved

portion, such person may request against any person

other than the trustee that the sum due to him by way

of reserved portion be placed under the trust settled in

his favour; and

(b) any other person entitled to the reserved portion shall

be entitled to apply sub-article (10)(b) at the time of

death of the beneficiary unless he had opted as stated

in sub-article (10)(c) within five years of the death of

the settlor; and

(c) the trustee shall be deemed to have the power and legal

interest to pursue any claim for the reserved portion

due to the beneficiary against any other person and to

receive any sum due into the trust established for the

purposes of this sub-article.

(12) The persons entitled to the reserved portion may choose any

of the above options by notice in writing to the trustee and to the

other heirs or executors of the estate.

(13) The action for reduction, whether against trustees or against

third parties, shall be barred by the prescription on the lapse of five

years to be reckoned from the day of the opening of the succession.

The aforesaid time shall also run against minors and persons

interdicted and shall not be capable of suspension or interruption

by judicial act or otherwise.

(14) The settlement and holding of property under trusts shall

not be considered to be in breach of the mandatory provisions of

law relating to the reserved portion of any person if the trust is to

hold property

(a) temporarily and unconditionally for a person entitled

thereto under fixed trusts; or

(b) until a calculation is made to establish the reserved

portion and thereafter to hold the same under fixed

trust for or to distribute the said reserved portion to the

person entitled thereto; or

(c) for a person who suffers from a mental or physical

disability in terms of sub-article (11).

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(1) The provisions of article 605 shall apply to trusts in

the same manner as it applies to wills, and on the events

contemplated therein, trusts in favour of such a person shall be

su bjec t t o termi nat ion o n the dem and o f the trust ee o r any

interested person.

(2) Notwithstanding that a trust may have been settled without

the reservation of the right of revocation or variation, a settlor may

demand the variation of the terms of trust on the grounds specified

in article 1787 and the provisions of articles 1788 and 1790 of this

Code and those of article 15 of the Trusts and Trustees Act shall

apply.

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When there exist both donations and settlements, for

purposes of determining the order of transactions and other matters

for the purpose of reduction of -

(a) donations in terms of Sub-title VI of Title XIV of Part

II of Book Second, and

(b) of settlements in terms of this Title,

donations and settlements shall be treated as forming part of the

same type of transactions and they shall be subject to reduction

commencing with the latest in date unless the settlor/donor has

expressly stated an order he wishes to be applied for such purpose.

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For the purposes of the calculation of the value of an

estate for any purposes of this Code, including for the benefit of a

claimant of a reserved portion and of an heir for the purposes of

collation amongst co-heirs, any settlement of property under trust

shall also be included in the estate

Provided that the settlor of property in trust may exempt

such settlement from collation in terms of article 914

Provided further that if the property settled in trust for the

benefit of an heir is collated in the interest of the other co-heirs,

such property as has been collated shall thereafter be held by the

trustee under separate trust absolutely for the benefit of such heir.

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(1) A trustee appointed in terms of a testamentary trust

shall not be considered to be a testamentary executor and the

provisions of articles 762 to 778 shall not apply to testamentary

trustees.

(2) When a person is appointed as trustee and also as an

executor, such executorship shall be regulated in terms of this Code

until such time as the executorship is fulfilled upon the delivery or

registration of any relevant assets to or in the name of the trustee.

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(1) Where movable or immovable property situated in

Mal ta has been settl ed in trust, und er th e laws of Mal ta or

otherwise, by a person who is not domiciled in Malta at the time of

settlement -

(a) such person shall be deemed to have had capacity to do

so if at the time of such transfer or disposition he was

of full age and sound mind under the law of his

domicile and the law of Malta; and

(b) no provision in this Code relating to inheritance or

succession to such property including, but without

prejudice to the generality of the foregoing, rights to a

reserved portion or similar rights applicable under this

Code shall apply to such trust property, at such time or

subsequently; and

(c) the beneficiaries shall be deemed to have capacity to

benefit.

(2) Once property has been settled in trust it shall not be

affected by a change of domicile of the settlor, even if the settlor

subsequently becomes domiciled in Malta.

(3) For the purposes of this article ''reserved portion'' means the

legal rule restricting the right of a person to dispose of his property

during his lifetime so as to preserve such property for distribution

at his death, or having similar effect.

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The right of redemption as provided for in article 912 shall

not apply when the transfer of the undivided share of an inheritance

shall consist of a settlement of such right under trusts, the

beneficiaries of which are the settlor himself, his heirs or the other

heirs of the estate or a distribution or reversion thereof to such

persons.

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The provisions of articles 1000 and 1001 shall not be

interpreted as creating any limitation on the power of any person to

settle a trust or a person to accept to act as trustee under a trust for

1001. the benefit of a beneficiary, on the binding nature and effect of any

trust or on the enforceablility of such rights as arise under a trust by

a beneficiary.

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The right of a debtor of a litigious right in terms of article

1483 shall not arise when the settlement involves the assignment of

a litigious right under trusts for the benefit of the creditor or

creditors who have assigned the debt.

Title IV

O F O BLIGATIONS IN G ENERAL

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Obligations which are not created by the mere operation of

law, arise from contracts, quasi-contracts, torts, or quasi-torts.

Sub-title I

O F C ONTRACTS

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A contract is an agreement or an accord between two or

more persons by which an obligation is created, regulated, or

dissolved.

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(1) A contract is synallagmatic or bilateral when the

contracting parties bind themselves mutually the one towards the

other.

(2) It is unilateral when one or more persons bind themselves

towards one or more other persons without there being any

obligation on the part of the latter.

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(1) When each of the parties undertakes an obligation, the

contract is termed onerous.

(2) When one of the parties gratuitously procures an advantage

to the other, the contract is termed gratuitous.

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A contract is commutative, when each party binds himself

to give or to do a thing which is considered as the equivalent of that

which is given to or done for him.

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When the advantage or loss, whether to both parties or one

of them, depends on an uncertain event, the contract is aleatory.

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Contracts, whether they have a special denomination or

not, shall be governed by the general rules contained in this Title

saving such special rules as apply to certain contracts.

§ I. O F THE C ONDITIONS E SSENTIAL TO THE VALIDITY OF

C ONTRACTS

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The following are the conditions essential to the validity

of a contract

(a) capacity of the parties to contract;

(b) the consent of the party who binds himself;

(c) a certain thing which constitutes the subject-matter of

the contract;

(d) a lawful consideration.

O F THE C APACITY OF C ONTRACTING P ARTIES

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(1) All persons not being under a legal disability are

capable of contracting.

(2)

The disability of persons sentenced to any punishment

whatsoever is abolished.

(3)

The following persons are incapable of contracting, in the

cases specified by law

(a) minors;

(b) persons interdicted or incapacitated; and

(c) generally, all those to whom the law forbids certain

contracts.

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Any contract entered into by a person who has not the use

of reason, or is under the age of seven years is null.

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(1) Any obligation entered into by a child under the age

of fourteen years is also null.

(2) Nevertheless, where the child has attained the age of nine

years, the agreement shall be valid in so far as it relates to the

obligations entered into by any other person in his favour.

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The provisions of the last preceding article shall also

apply with regard to any person who has attained the age of

fourteen years, but has not attained the age of eighteen years, if

such person is subject to parental authority, or is provided with a

curator, saving always any other provision of law relating to

marriage.

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(1) Subject to any other provision contained in the

Commercial Code, any minor who has attained the age of fourteen

years, and is not subject to parental authority, nor provided with a

curator, may not alienate or hypothecate his immovable property

without the authority of the competent court.

(2) Such minor may, however, enter into other obligations,

saving, in regard to such obligations, any rescissory action which,

on the ground of lesion, may be competent to him under the

provisions of articles 1214 to 1219.

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(1) Notwithstanding any provision of this Code, a minor

who has attained the age of sixteen (16) years may deposit money in

an account opened by the said minor in his own name with any credit

institution or place funds in an account opened by the minor in his own

name with any financial institution, and any money and, or funds so

deposited or placed in any such accounts may only be withdrawn by

the said minor notwithstanding that such money and, or funds may be

subject to the administration, usufruct or authority of any other person.

For all purposes of law, the said minor shall, with regard to the

opening and operation of any such accounts, be considered a major

Provided that any such funds placed in an account opened

by the minor in his own name with any financial institution shall be

safeguarded by the financial institution in accordance with article 10B

of the Financial Institutions Act and the provisions of the Financial

Institutions Act (Safeguarding of Funds) Regulations.

CIVIL CODE

(2)

For the purposes of this article

"credit institution" shall have the same meaning as

assigned to it in article 2(1) of the Banking Act;

"EEA State" means a State which is a contracting party

to the agreement on the European Economic Area signed at

Oporto on the 2nd May, 1992 as amended by the Protocol

signed at Brussels on the 17th March, 1993 and as amended by

any subsequent acts;

"Electronic Money Directive" means Directive 2009/11/

EC of the European Parliament and of the Council of 16

September 2009 on the taking up, pursuit and prudential

supervision of the business of electronic money institutions

amending Directives 2005/60/EC and 2006/48/EC and

repealing Directive 2000/46/EC, as amended from time to time;

"financial institution" means a payment institution as

defined in regulation 2(2) of the Financial Institutions Act

(Safeguarding of Funds) Regulations or an electronic money

institution as defined in the said regulations, which is licensed

in accordance with the Financial Institutions Act, or which

otherwise holds an equivalent authorisation in another Member

State of the European Union or EEA State in accordance with

the Payment Services Directive or the Electronic Money

Directive, as the case may be;

"funds" shall have the same meaning as that assigned to

it in article 2(1) of the Financial Institutions Act;

"Payment Services Directive" means Directive (EU)

2015/2366 of the European Parliament and of the Council of 25

November 2015 on payment services in the internal market,

amending Directives 2002/65/EC, 2009/110/EC and 2013/36/

EU and Regulation (EU) No. 1093/2010, and repealing

Directive 2007/64/EC, as amended from time to time.

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The disability of persons interdicted is either general in

regard to all agreements, or special in regard to certain agreements

only, as provided in Title IV of Part II of Book Second of the Code

of Organization and Civil Procedure.

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Persons capable of contracting may not set up the nullity

of the contract on the ground of the disability of those with whom

they have contracted.

O F C ONSENT

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Where consent has been given by error, or extorted by

violence or procured by fraud, it shall not be valid.

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An error of law shall not void the contract unless it was

the sole or principal inducement thereof.

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(1) An error of fact shall not void the contract unless it

affects the substance itself of the thing which is the subject-matter

of the agreement.

(2) The agreement shall not be void if the error relates solely to

the person with whom the agreement has been made, unless the

consideration of the person has been the principal inducement

thereof.

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(1) The use of violence against the obligor is a cause of

nullity, even if such violence is practised by a person other than the

obligee.

(2) Nevertheless, an obligation entered into in favour of a

person not being an accessory to the use of violence, in

consideration of services rendered for freeing the obligor from

violence practised by a third party, may not be avoided on the

ground of such violence; saving the reduction of the sum or thing

promised, where such sum or thing is excessive.

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(1) Consent shall be deemed to be extorted by violence

when the violence is such as to produce an impression on a

reasonable person and to create in such person the fear of having

his person or property unjustly exposed to serious injury.

(2) In such cases, the age, the sex and the condition of the

person shall be taken into account.

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(1) Violence is a ground of nullity of a contract even

where the threat is directed against the person or the property of the

spouse, or of a descendant or an ascendant of the contracting party.

(2) Where the threat is directed against the person or property

of other persons, it shall be in the discretion of the court, according

to the circumstances of the case, to void the contract or to affirm its

validity.

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Mere reverential fear towards any one of the parents or

other ascendants or towards one’s spouse, shall not be sufficient to

invalidate a contract, if no violence has been used.

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(1) Fraud shall be a cause of nullity of the agreement

when the artifices practised by one of the parties were such that

without them the other party would not have contracted.

(2)

Fraud is not presumed but must be proved.

O F THE S UBJECT-MATTER OF C ONTRACTS

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(1) Every contract has for its subject-matter a thing which

one of the contracting parties binds himself to give, or to do, or not

to do.

(2) Only the things that are not extra commercium can be the

subject of an agreement.

(3) The mere use or the mere possession of a thing can like the

thing itself, be the subject of a contract.

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(1) The subject of an obligation must be a thing

determinate, at least as to its species.

(2) The portion or quantity of the thing may be uncertain,

provided it is capable of being ascertained.

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(1) Future things can form the subject of a contract.

(2) Nevertheless, it shall not be lawful to renounce a

succession not yet devolved, or to make any stipulation with regard

to any such succession, whether with the person whose succession

is concerned, or with any other person, even though with the

consent of the former; saving any other provision of the law in

regard to any renunciation or stipulation made in contemplation of

marriage, or upon the taking of religious vows.

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Things which are impossible, or prohibited by law, or

contrary to morality, or to public policy, may not be the subject-

matter of a contract.

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(1) Stipulations quotae litis are void.

(2) Saving the provisions of article 1852 and of any other

provision of this Code or of any other law, any obligation to pay a

rate of interest exceeding eight per cent per annum is also void in

regard to the excess.

O F THE C ONSIDERATION OF C ONTRACTS

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An obligation without a consideration, or founded on a

false or an unlawful consideration, shall have no effect.

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The agreement shall, nevertheless, be valid, if it is made to

appear that such agreement was founded on a sufficient

consideration, even though such consideration was not stated.

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Where the consideration stated is false, the agreement

may, nevertheless, be upheld, if another consideration is proved.

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The consideration is unlawful if it is prohibited by law or

contrary to morality or to public policy.

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(1) Where the consideration for which a thing has been

promised is unlawful only in regard to the obligee, any thing which

may have been given for the performance of the contract, may be

recovered.

(2) If the consideration is unlawful in regard to both

contracting parties neither of them, unless he is a minor, may

recover the thing which he may have given to the other party,

saving the provision of article 1716.

§ II. O F THE E FFECTS OF C ONTRACTS

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(1) Contracts legally entered into shall have the force of

law for the contracting parties.

(2) They may only be revoked by mutual consent of the parties,

or on grounds allowed by law.

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Contracts must be carried out in good faith, and shall be

binding not only in regard to the matter therein expressed, but also

in regard to any consequence which, by equity, custom, or law, is

incidental to the obligation, according to its nature.

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Where the subject-matter of a contract is the alienation of

the ownership, or of any other right over a certain and determinate

thing, such ownership or other right is transferred and acquired in

virtue of the consent of the parties, and the thing remains at the risk

of the alienee, even though the delivery thereof has not taken place.

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(1) Where the subject-matter of the contract is an

uncertain or indeterminate thing, the creditor does not become the

owner of such thing until it has become certain, or the debtor has

specified it, and has given notice to the creditor that he has

specified it.

(2) Until the thing has become certain or has been specified, it

remains at the risk of the debtor.

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(1) Nevertheless, with regard to third parties any contract

conveying the ownership of immovable property, or any right over

such property, shall, in no case, commence to be operative until it

has been registered in the Office of the Public Registry, as provided

in article 330.

(2) Where the alienation is made by judicial auction the note

for the registration shall be signed by the registrar of the court

under the authority of which the adjudication of the thing shall

have taken place.

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Where the thing which a person has by successive

agreements undertaken to give or deliver to two or more persons is

movable by nature, or a document of title payable to bearer, the

person to whom the thing is delivered, and who obtains it in good

faith, shall have a prior right over the other or others and shall be

entitled to retain it, even though his title is subsequent in date.

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Every person shall be deemed to have promised or

stipulated for himself, for his heirs and for the persons claiming

through or under him, unless the contrary is expressly established

by law, or agreed upon between the parties, or appears from the

nature of the agreement.

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(1) A person cannot by a contract entered into in his own

name bind or stipulate for any one but himself.

(2) Nevertheless, a person can bind himself in favour of

another person, to the performance of an obligation by a third

party; but in any such case if the third party refuses to perform the

o b l i g a t i o n , t h e p e r s o n w h o b ou n d h i m s e l f o r p r o m i s e d t he

ratification shall only be liable to the payment of an indemnity.

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It shall also be lawful for a person to stipulate for the

benefit of a third party, when such stipulation constitutes the mode

or condition of a stipulation made by him for his own benefit, or of

a donation or grant made by him to others; and the person who has

made any such stipulation may not revoke it, if the third party has

signified his intention to avail himself thereof.

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Contracts shall only be operative as between the

contracting parties, and shall not be of prejudice or advantage to

third parties except in the cases established by law.

§ III. O F THE I NTERPRETATION OF C ONTRACTS

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Where, by giving to the words of an agreement the

meaning attached to them by usage at the time of the agreement, the

terms of such agreement are clear, there shall be no room for

interpretation.

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Where the literal meaning differs from the common

intention of the parties as clearly evidenced by the whole of the

agreement, preference shall be given to the intention of the parties.

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When a clause is susceptible of two meanings, it must be

construed in the meaning in which it can have some effect rather

than in that in which it can produce none.

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Words susceptible of two meanings shall be taken in the

meaning which is more consistent with the subject-matter of the

contract.

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Whatever is ambiguous shall be interpreted according to

the usage of the place where the contract is made.

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Customary clauses shall be deemed to be included in a

contract, even though they are not expressed.

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All the clauses of a contract shall be interpreted with

reference to one another, giving to each clause the meaning

resulting from the whole instrument.

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In case of doubt, the agreement shall be interpreted against

the obligee and in favour of the obligor.

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However general may be the terms in which a contract is

worded, it shall only extend to the things which the parties appear

to have intended to deal with.

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Where in a contract a case has been specified for the

purpose of explaining an agreement, it shall not be presumed that

the parties, by so doing, intended to exclude other cases not

specified, if such other cases may reasonably be construed as being

within the scope of the agreement.

Sub-title II

O F Q UASI-CONTRACTS, T ORTS AND Q UASI-TORTS

§ I. O F Q UASI-CONTRACTS

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A quasi-contract is a lawful and voluntary act which

creates an obli gat ion tow ards a t hird p arty, or a reciprocal

obligation between the parties.

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Where a person, being of age and capable of contracting,

voluntarily undertakes the management of the affairs of another

person, he shall be bound to continue the management which he has

begun and to carry it out until the person on whose behalf he has

acted is in a position to take charge of such management himself,

and to do everything which is incidental to or dependent upon those

affairs, and he shall be liable to all the obligations which would

arise from a mandate.

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Where the person on whose behalf the voluntary agent has

acted dies before the business is completed, such agent shall be

bound to continue the management of the business until such time

as the heir is in a position to provide for it himself.

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The voluntary agent shall be bound to use in the

management of the business all the diligence of a bonus

paterfamilias.

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The provisions of the last preceding article shall be

applied with greater strictness in the following cases

(a) where the agent has intermeddled with the business,

notwithstanding the prohibition of the party interested;

(b) where, by reason of his intermeddling, the business

was not undertaken by a more competent person;

(c) where the agent himself did not possess the requisite

skill.

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It shall, in all cases, be lawful for the court to mitigate the

damages arising from the imprudence or negligence of the agent,

having regard to the circumstances which may have induced him to

undertake the business.

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If the business was well managed, the party interested

shall, even though the management may have accidentally failed to

benefit him, be bound to perform the obligations contracted on his

behalf by the agent, to indemnify the said agent in regard to any

obligation he may have contracted in his own name, and to

reimburse to him any necessary or useful expenses, with interest

from the day on which they shall have been incurred.

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Nevertheless, where the agent was under the impression

that he was managing his own affairs, he shall not be entitled to any

indemnity beyond the benefit which the party interested may have

actually derived.

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Where a person has intermeddled with the affairs of

another person against the express prohibition of such other person,

he shall not be entitled to any indemnity.

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A person who receives, whether knowingly or by mistake,

a thing which is not due to him under any civil or natural

obligation, shall be bound to restore it to the person from whom he

has unduly received it.

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(1) Where any person pays a debt under a mistaken

belief that such debt is due by him, he may recover from the

creditor the debt so paid.

(2) Such right of recovery, however, ceases if, in consequence

of the payment, the creditor has, in good faith, deprived himself of

the proof of, or the security attached to the debt, saving the right of

the payer against the true debtor.

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(1) Any person who has unduly received the payment of

a sum of money, shall, if he was in bad faith, be bound to restore

both the capital and the interest thereon as from the day of the

payment.

(2) Where, however, he was in good faith, he shall only be

bound to restore the capital.

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Any person who has unduly received any thing, other than

money, which is still in his possession, shall be bound to restore it

in kind to the party from whom he received it.

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(1) If the thing is not in his possession, or has

deteriorated, he shall, if he received it in bad faith, be liable to the

same obligations as, under articles 556 and 557 are imposed on a

possessor in bad faith.

(2) If he received the thing in good faith, he shall be bound to

restore the value thereof or, as the case may be, to make good the

deterioration, but only up to the amount of any benefit which, as a

result of the alienation or deterioration of the thing, he may have

derived; and where he has not yet received the subject of the

benefit derived from such alienation or deterioration, he shall only

be bound to assign his right of action for the recovery thereof.

(3) He is not bound to restore the value of the thing if he has

lost, given or destroyed it.

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(1) The provisions of articles 540 to 545 and 547 shall

apply to any person who has unduly received a thing, according as

547. to whether he has received it in good or in bad faith.

(2) The provisions of articles 548, 549 and 550 shall apply to

any such person in all cases.

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The action for the recovery of that which may have been

unduly given, unless prescribed under any of the provisions

contained in the title relating to prescription, shall be prescribed by

the lapse of two years from the day on which the person to whom

the action is competent shall have discovered the mistake.

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Any person who has given a thing by mistake cannot

recover it from a third party to whom it was, under any title

whatsoever, transferred by the party who had received it.

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(1) Whosoever, without a just cause, enriches himself to

the detriment of others shall, to the limits of such enrichment,

reimburse and compensate any patrimonial loss which such other

person may have suffered.

(2) If the enrichment constituted a determinate object, the

recipient is bound to return the object in kind, if such object is still

in existence at the time of the claim.

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The actio de in rem verso may not be exercised where the

person who suffers the loss may take another action to make up for

such loss.

§ II. O F T ORTS AND Q UASI-TORTS

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Any damage which is produced by a fortuitous event, or in

consequence of an irresistible force, shall, in the absence of an

express provision of the law to the contrary, be borne by the party

on whose person or property such damage occurs.

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Any person who makes use, within the proper limits, of a

right competent to him, shall not be liable for any damage which

may result therefrom.

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Every person, however, shall be liable for the damage

which occurs through his fault.

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(1) A person shall be deemed to be in fault if, in his own

acts, he does not use the prudence, diligence, and attention of a

bonus paterfamilias.

(2) No person shall, in the absence of an express provision of

the law, be liable for any damage caused by want of prudence,

diligence, or attention in a higher degree.

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Any person who, with or without intent to injure,

vo lu nt a r il y or th ro ug h n e gl ig e n c e , i m pr u den c e , or w a n t of

attention, is guilty of any act or omission constituting a breach of

the duty imposed by law, shall be liable for any damage resulting

therefrom.

1033A.Notwithstanding the provisions of articles 1031, 1032 and

1033, any person who causes damages in the performance of a rescue or

in the course of assisting another person whose life or personal safety is

in clear danger, shall not be liable for any damage caused in the course

of the rescue or of giving assistance to the person who he rescued or

assisted or tried to rescue or assist, to that person’s property or to third

parties or third party property

Provided that, the person performing the rescue or granting

the assistance above mentioned shall be liable for acts performed with

malice or gross negligence.

Liġijiet ta' Malta — Kapitolu 16 — KODIĊI ĊIVILI

Minkejja d-dispożizzjonijiet tal-artikoli 1031, 1032 u 1033,

kull persuna li tikkaġuna danni fit-twettiq ta’ salvataġġ jew ta’

għajnuna lil ħaddieħor li ħajtu jew is-sikurezza personali tiegħu tkun

tinsab f’periklu ċar, ma għandha tkun responsabbli għal ebda danni

kawżati waqt dak is-salvataġġ jew għoti ta’ għajnuna lill-persuna li

hija tkun salvat jew assistiet jew tkun ippruvat issalva jew tassisti, lill-

proprjetà tagħha jew lil terzi persuni jew lill-proprjetà tagħhom

Iżda l-persuna li twettaq is-salvataġġ jew li tagħti l-għajnuna

kif fuq imsemmi għandha tkun responsabbli għal atti mwettqa

dolożament jew b’negliġenza grossolana.

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Any person having the charge of a minor, or of a person with a

mental disorder or other condition, which renders him incapable of

managing his own affairs, shall be liable for any damage caused by such

minor or such person, if he fails to exercise the care of a bonus

paterfamilias in order to prevent the act.

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Persons with a mental disorder or other condition, which

renders them incapable of managing their own affairs, children under

nine years of age, and, unless it is proved that they have acted with

a mischievous discretion, children who have not attained the age of

fourteen years, shall not be bound to make good the damage caused

by them; saving, where competent, any action of the party injured

against such persons as may be liable for such damage, under the

provisions of the last preceding article.

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Nevertheless, where the party injured cannot recover

damages from such other persons, because they are not liable or

because they have no means, and the said party has not, by his own

negligence, want of attention, or imprudence, given occasion to the

damage, the court may, having regard to the circumstances of the

case, and particularly to the means of the party causing the damage

and of the injured party, order the damage to be made good, wholly

or in part, out of the property of the minor or of the person with a

mental disorder or other condition referred to in the last preceding

article.

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Where a person for any work or service whatsoever

employs another person who is incompetent, or whom he has not

reasonable grounds to consider competent, he shall be liable for

any damage which such other person may, through incompetence in

the performance of such work or service, cause to others.

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Any person who without the necessary skill undertakes

any work or service shall be liable for any damage which, through

his unskilfulness, he may cause to others.

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(1) A hotel-keeper shall be liable up to an amount not

exceeding one hundred and seventy-four euro and seventy cents

(174.70) for any damage to or destruction or loss of property

brought to the hotel by any guest.

(2)

The liability of a hotel-keeper shall be unlimited -

(a) if the property has been deposited with him; or

(b) if he has refused to receive the deposit of property

which he is bound under the provision of the next

following sub-article to receive for safe custody; or

(c) in any case in which the damage to, or destruction or

loss of, property has been caused, voluntarily or

through negligence or lack of skill, even in a slight

degree, by him or by a person in his employment or by

any person for whose actions he is responsible.

(3) A hotel-keeper shall be bound to receive for safe custody

securities, money and valuable articles except dangerous articles

and such articles as having regard to the size or standard of the

hotel are cumbersome or have an excessive value.

(4) A hotel-keeper shall have the right to require that any

articles delivered to him for safe custody shall be in a fastened or

sealed container.

(5)

The provisions of sub-articles (1) and (2) of this article

s h a l l n o t a p pl y i f t h e g u e s t , a f t e r d i s c o v e r i n g t h e d a m a g e ,

destruction or loss, does not inform the hotel-keeper without undue

delay, or if the damage to, destruction or loss of, property is due -

(a) to a fortuitous event or to irresistible force; or

(b) to a reason inherent in the nature of the property

damaged, destroyed or lost; or

(c) to an act or omission of the guest by whom it was

brought into the hotel, or of any person, other than the

hotel-keeper, to whom such guest may have entrusted

the said property or of any person in the employment

of such guest or accompanying him or visiting him.

(6) Any tacit or express agreement between a hotel-keeper and

a guest entered into before any damage to, destruction or loss of,

property has occurred and purporting to exclude, reduce or make

less onerous the hotel-keeper’s liability as established in this article

shall be null and void

Provided that, in the cases referred to in paragraphs (a) and (c) of

sub-article (2) of this article where the damage to, or destruction or

loss of, property has not been caused by a person mentioned in the

said paragraph (c) voluntarily or through gross negligence, any

agreement signed at any time by the guest whereby the hotel-

keeper’s liability is reduced to an amount being not less than one

hundred and seventy-four euro and seventy cents (174.70) shall be

valid.

(7) In this article and in article 2009 of this Code "guest"

means a person who stays at the hotel and has sleeping

accommodation put at his disposal therein, but is not an employee

in the hotel.

(8) In this article, any reference to a "hotel-keeper", except in

so far as the liabilities thereby established are imposed on the

hotel-keeper, shall be construed as including reference to the

person in charge of the hotel or of the reception of guests in the

hotel, and any reference to "loss" shall be deemed to include by

theft.

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The owner of an animal, or any person using an animal

during such time as such person is using it, shall be liable for any

damage caused by it, whether the animal was under his charge or

had strayed or escaped.

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The owner of a building shall be liable for any damage

which may be caused by its fall, if such fall is due to want of

repairs, or to a defect in its construction, provided the owner was

aware of such defect or had reasonable grounds to believe that it

existed.

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Where any damage is caused to any person by the fall of a

thing suspended or placed in a dangerous position, or by a thing or

matter thrown or poured from any building, the occupier of such

building, provided he himself has not committed the act, and has

not in any way contributed thereto, shall not be liable except in so

far as the provisions contained in this Title relating to the liability

of a person for damage caused by another, are applicable to him.

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An action for damages shall lie even where the party

causing the damage was at the time in a state of intoxication.

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Where damage has been unjustly caused, any person who

has wilfully contributed thereto with advice, threats, or commands,

shall also be liable.

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(1) The damage which is to be made good by the person

responsible in accordance with the foregoing provisions shall

consist in the actual loss which the act shall have directly caused to

the injured party, in the expenses which the latter may have been

compelled to incur in consequence of the damage, in the loss of

actual wages or other earnings, and in the loss of future earnings

arising from any permanent incapacity, total or partial, which the

act may have caused

Provided that in the case of damages arising from a criminal

offence, other than an involuntary offence, and only in the case of

crimes affecting the dignity of persons under Title VII of Part II of Book

First of the Criminal Code and of wilful crimes against the person

subject to a punishment of imprisonment of at least three years under

Title VIII of Part II of Book First of the said Code, up to a maximum

limit of ten thousand euro (€10,000) or up to such maximum limit as the

Minister may by regulations establish both with regard to the maximum

amount and about the method of computation depending on the case, the

damage to be made good shall also include any moral harm and, or

psychological harm caused to the claimant.

(2) The sum to be awarded in respect of such incapacity shall

be assessed by the court, having regard to the circumstances of the

case, and, particularly, to the nature and degree of incapacity

caused, and to the condition of the injured party.

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Where in consequence of the act giving rise to damages

death ensues, the court may, in addition to any actual loss and

expenses incurred, award to the heirs of the deceased person

d a m a g e s , a s i n t h e c a s e o f p e r m a n e n t t o t a l i n c a p a c i t y, i n

accordance with the provisions of the last preceding article.

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(1) The damage which consists in depriving a person of

the use of his own money, shall be made good by the payment of

interest at the rate of eight per cent a year.

(2) If, however, the party causing the damage has acted

maliciously, the court may, according to circumstances, grant also

to the injured party compensation for any other damage sustained

by him, including every loss of earnings, if it is shown that the

party causing the damage, by depriving the party injured of the use

of his own money, had particularly the intention of causing him

such other damage, or if such damage is the immediate and direct

consequence of the injured party having been so deprived of the use

of his own money.

(3) The sum to be awarded in respect of such loss of earnings

shall be assessed by the court having regard to the circumstances of

the case.

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Where a person is liable for the damage caused by another

person, and discharges his liability, he may not seek relief against

the party causing the damage, except where the latter is also

answerable for such damage.

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(1) Where two or more persons have maliciously caused

any damage, their liability to make good the damage shall be a joint

and several liability.

(2) Where some of them have acted with malice, and others

without malice, the former shall be jointly and severally liable, and

each of the latter shall only be liable for such part of the damage as

he may have caused.

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(1) Where the part of the damage which each has caused

cannot be ascertained, the injured party may claim that the whole

damage be made good by any one of the persons concerned, even

though all or some of them have acted without malice, saving the

right of the defendant to seek relief from the other or the others.

(2) In such case, it shall be lawful for the defendant to demand

that all the persons causing the damage be joined in the proceedings

in the manner and for the purposes referred to in article 962 of the

Code of Organization and Civil Procedure, and the court may

apportion among them the sum fixed by way of damages, in equal

or unequal shares, according to circumstances; saving always the

right of the injured party to claim the whole sum from any one of

the persons concerned who in regard to him shall be all condemned

jointly and severally.

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If the party injured has by his imprudence, negligence or

want of attention contributed or given occasion to the damage, the

court, in assessing the amount of damages payable to him, shall

determine, in its discretion, the proportion in which he has so

contributed or given occasion to the damage which he has suffered,

and the amount of damages payable to him by such other persons as

may have maliciously or involuntarily contributed to such damage,

shall be reduced accordingly.

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(1) For the purposes of this article "corruption" means

requesting, offering, giving or accepting, directly or indirectly, a

bribe or any other undue advantage or prospect thereof, which

distorts the proper performance of any duty or behaviour required

of the recipient of the bribe, by the undue advantage or the prospect

thereof.

(2) Any person who claims to have suffered damage as a result

of corruption shall have a right of action to obtain compensation for

the damage caused to him by the act of corruption against the

persons who have committed or authorised the act of corruption or

who have failed to take reasonable steps to prevent the act of

corruption.

(3) The persons who have committed or authorised the act of

corruption and the persons who have failed to take reasonable steps

to prevent the act of corruption shall be jointly and severally liable

for the damages referred to in sub-article (2).

(4) Where the act of corruption has been committed by an

officer or employee of the Government or of a body corporate

established by law, the Government or as the case may be the body

corporate established by law shall itself be liable to make payment

for the damage caused by the act of corruption where

(a) the person claiming to have suffered the damage has,

on becoming aware of the improper behaviour of the

officer or employee, given such notice to the

Government or the body corporate, as the case may be,

to take such preventive measures as are reasonable in

the circumstances to prevent the commission of the act

of corruption;

(b) the person claiming to have suffered the damages has

not himself in relation to the same matter induced any

officer or employee to commit the act of corruption, or

in any manner been party to it;

(c) the person suffering the damage has taken all action

against the person liable for the damages in

accordance with sub-article (3) to recover the

damages; and

(d) the Government or the body corporate, as the case may

be, has been made a party to the suit against the

persons liable for the damages in accordance with sub-

article (3) in order to defend its interests under this

sub-article

Provided that the Government or the body corporate, as the

case may be, shall only be liable for such part of the damages as are

not recovered from the persons liable therefor in accordance with

sub-article (3).

(5) No right for compensation for damages shall lie where the

party claiming to have suffered the damages has himself wilfully

been a party to the act of corruption

Provided that nothing in this sub-article shall be construed

as precluding any person from recovering any payment made or

thing given, or the value thereof, where the payment has been made

or the thing has been given for an unlawful consideration.

(6) An action to recover damages under this article shall be

brought before the lapse of three years from the date that the person

claiming damages becomes aware or should have reasonably

become aware that damage has occurred or that an act of corruption

has taken place and of the identity of the person responsible

therefor or before the lapse of ten years from the date of the act of

corruption, whichever is the earlier, and no action may be brought

after the lapse of such time.

(7) Where any contract has been entered into by any person

(including the Government or any body corporate established by

law) and the contract or any clause thereon has been concluded by

an employee, officer or agent of such person following an act of

corruption in favour of such officer, employee or agent, the person

bound by such contract and whose officer, employee or agent has

been so corrupted, shall without prejudice to any right of action to

recover damages in accordance with this article have a right to take

action not later than a year after becoming aware of such corruption

or from the time when he should reasonably have become aware, to

annul the contract or any clause thereof which has been entered

because of such corruption

Provided that no action may be brought after the lapse of

ten years from the date of the act of corruption.

(8) Prescription may not be set up against the Government or

against a Local Council or against a body corporate established by

law in an action to recover damages under this article based on an

act of corruption committed by the defendant through abuse of his

office wh ilst hold ing the o ffice of Min ister, Parl iam en tary

Secretary, Member of the House of Representatives, Mayor or

Local Councillor.

Sub-title III

O F THE V ARIOUS K INDS OF O BLIGATIONS

§ I. O F C ONDITIONAL O BLIGATIONS

O F C ONDITIONS IN GENERAL AND OF THEIR V ARIOUS K INDS

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An obligation is conditional when it is made to depend

upon an uncertain future event, either by suspending it until the

event happens, or by dissolving it if the event happens or does not

happen.

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(1) A condition is casual when it makes the obligation

depend upon a fortuitous event beyond the control of the debtor and

of the creditor.

(2) A potestative condition is that which makes the obligation

depend upon an event which the one or the other of the contracting

parties has the power to bring about or to prevent.

(3) A mixed condition is that which makes the obligation

depend upon the will of one of the contracting parties, and, at the

same time, upon the will of a third party or upon a fortuitous event.

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Any condition contrary to morals, or to public policy, or

prohibited by law, or which imposes the performance of an

impossible thing, is void, and annuls the agreement dependent

thereon.

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(1) The condition to forbear to do an impossible thing

does not void the obligation contracted on that condition.

(2) The condition, however, to forbear to do a thing contrary to

morals or to public policy or prohibited by law may void the

obligation.

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(1) Where an obligation is contracted on a condition

which makes the obligation depend solely upon the will of the

obligor, the obligation is null.

(2) Nevertheless, where the obligation depends upon an event

the happening of which is within the power of the obligor, he is

bound if the event happens.

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Every condition must be fulfilled in the manner in which

the parties have in all likelihood desired and intended that it should

be fulfilled.

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(1) Where an obligation is contracted on condition that

an event shall happen within an appointed time, such condition

shall be deemed to have failed if the time expires without the event

having happened.

(2) Where no time is fixed, the condition shall not be deemed

to have failed until it is certain that the event will not happen

Provided that, where the condition consists in an act which can

be performed by the obligee, it shall be lawful for the court,

according to circumstances, to fix a time for the fulfilment of the

condition, and if, on the expiration of such time, the condition has

not been fulfilled, the obligation ceases.

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(1) Where an obligation is contracted on condition that

an event shall not happen within an appointed time, the condition

shall be deemed to be fulfilled both if the time expires and the

event has not happened, as well as if, before the expiration of the

time, it is certain that the event will not happen.

(2) Where no time is fixed, the condition is not fulfilled until it

is certain that the event will not happen

Provided that, where the condition consists in an act within the

power of the obligor, it shall be lawful for the court to fix a time,

and if the time expires and the event constituting the condition does

not occur, the condition shall be deemed to be fulfilled, and the

obligor shall be bound to perform the obligation.

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(1) The condition shall be deemed to be fulfilled if the

debtor who is bound under such condition is the person who has

impeded the fulfilment thereof.

(2) The provision of this article shall not apply in any case in

which the impediment is due to the exercise of a lawful right not

contemplated in the agreement.

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(1) A condition, on being fulfilled, shall have a

retroactive effect.

(2) If the creditor dies before the fulfilment of the condition,

his rights vest in his heirs.

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The creditor may, before the fulfilment of the condition,

take all the necessary steps for the preservation of his rights.

O F THE S USPENSIVE C ONDITION

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(1) A suspensive condition is that which makes the

existence of the obligation depend upon a future and uncertain

event.

(2) An obligation under a suspensive condition does not exist

before the event happens.

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Where an obligation is contracted under a suspensive

condition, and the thing forming the subject-matter of the

agreement perishes or deteriorates before the condition is fulfilled,

the following rules shall be observed

(a) if the thing perishes entirely, without any fault of the

debtor, the agreement shall be ineffectual;

(b) if the thing perishes entirely, through the fault of the

debtor, such debtor shall be liable to the creditor for

damages;

(c) if the thing perishes in part only, or deteriorates,

without any fault of the debtor, the loss shall be borne

by the creditor, who shall be bound to receive the thing

in the state in which it is without any abatement of the

(d) if the thing perishes in part, or deteriorates, through

the fault of the debtor, the creditor may elect either to

demand the dissolution of the agreement, or to claim

the thing in the state in which it is, with damages.

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An obligation contingent on an event which has already

happened, but is not yet known to the parties, shall be effectual as

from the day on which it was contracted, but the debtor may not be

compelled to perform it until the unknown event is ascertained.

O F THE R ESOLUTIVE C ONDITION

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(1) A resolutive condition is that which, on being

accomplished, operates the dissolution of the obligation, and

replaces things in the same state as though the obligation had never

been contracted.

(2) Such condition does not suspend the performance of the

obligation, but, if the event provided for by the condition happens,

the creditor shall be bound to restore that which he may have

received.

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Where the resolutive condition is expressly stated in the

agreement, such agreement shall, upon the accomplishment of the

condition, be dissolved ipso jure, and it shall not be lawful for the

court to grant any time to the defendant.

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A resolutive condition is in all cases implied in bilateral

agreements in the event of one of the contracting parties failing to

fulfil his engagement

Provided that in any such case, the agreement shall not be

dissolved ipso jure, and it shall be lawful for the court, according to

circumstances, to grant a reasonable time to the defendant, saving

any other provision of law relating to contracts of sale.

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(1) Where the resolutive condition, whether express or

implied, relates to any case in which one of the parties fails to fulfil

his engagement, the party who is the creditor in the undischarged

obligation may, at his option, upon the accomplishment of the

condition, either demand the dissolution of the contract, or compel

the other party to perform the obligation, if this is possible.

(2)

In either case the defendant may be condemned in damages.

§ II. O F O BLIGATIONS WITH A L IMITED T IME

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(1) Time is the period fixed for the performance of an

obligation.

(2) A time may be established either by fixing a certain

specified day, or by reference to an event which will certainly

happen, although on an uncertain day.

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Time shall not suspend the obligation, but shall only delay

the execution thereof.

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What is only due at a certain time, cannot be claimed

before the expiration of such time, but what has been paid in

advance, cannot be recovered even though the debtor at the time of

payment may not have been aware of the stipulation as to time.

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Time shall always be deemed to be stipulated in favour of

the debtor, unless it appears from the stipulation or from the

circumstances that it was also agreed upon in favour of the creditor.

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In computing a time the day shall be reckoned at twenty-

four hours: the month and the year according to the calendar.

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The day on which an obligation with a limited time is

contracted, or from which the time is to commence to run, shall not

be computed in the time itself.

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(1) Public holidays shall not suspend the running of the

time

Provided that where the last day of the time is a public holiday

the time shall not be deemed to have elapsed before the next

following day, not being a public holiday, shall have expired.

(2) For the purposes of this article, public holidays are those

days in which no ordinary court sitting may be held as provided in

article 109 of the Code of Organization and Civil Procedure.

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Where no time has been fixed for the performance of an

obligation, it shall be carried into effect forthwith, unless the nature

of the obligation, or the manner in which it is to be carried into

effect, or the place agreed upon for its execution, implies the

necessity of a time to be, if necessary, fixed by the court.

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Where the time for the performance of the obligation has

been left to the will of the debtor, or where it has been agreed that

the debtor shall discharge the obligation when it will be possible

for him to do so, or when he will have the means for so doing, the

following rules shall be observed

(a) if the subject-matter of the obligation is the payment

of a sum of money, such obligation shall be performed

within two years, if the sum is due without interest, or,

within six years if the sum is due with interest;

(b) if the subject-matter of the obligation is other than the

payment of a sum of money, the time within which the

obligation is to be performed shall be fixed by the

court according to circumstances.

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A debtor can no longer claim the benefit of time if he has

become insolvent, or if his condition has so changed as to endanger

the payment of the debt, or if by his own act he has diminished the

security which under the agreement he had given to the creditor, or

if he has failed to give the security agreed upon.

§ III. O F A LTERNATIVE AND P OTESTATIVE O BLIGATIONS

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(1) The debtor in an alternative obligation is released

therefrom by the delivery of one of the two things included in the

obligation.

(2) The debtor may not compel the creditor to receive a part of

one thing and a part of the other.

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The option shall belong to the debtor, unless it has been

expressly granted to the creditor.

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(1) Where the party entitled to the option fails to

exercise such option within the time expressly agreed upon for the

purpose, the right of option shall vest in the other party.

(2) Where no such time has been agreed upon, it shall be

competent to the court to fix a time, and if the party having the

option shall fail to exercise it within such time, the right of option

shall vest in the other party.

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Where one of the two things promised could not form the

subject-matter of the obligation, such obligation shall be deemed to

be pure and simple with regard to the other thing.

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(1) An alternative obligation shall become pure and

simple with regard to the thing which remains, if one of the two

things promised perishes, or can no longer be delivered, even if this

happens through the fault of the debtor. The value of the thing

which perished cannot be offered in its stead.

(2) If both things perish and the debtor is in fault with regard to

one of them, he shall be bound to pay the value of the thing which

perished last.

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Where, in any of the cases referred to in the last

preceding article, the right of option, under the agreement, was

granted to the creditor, the following rules shall be observed

(a) if only one of the things perishes, but without the fault

of the debtor, the creditor is bound to receive the thing

which remains: if the debtor is in fault, the creditor

may claim either the thing which remains or the value

of the thing which perished;

(b) if both things perish, and the debtor is in fault with

regard to both or even to one of them, the creditor may

demand the value of either of such things, at his

choice.

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Where both things perish, without the fault of the debtor,

and before he is in default for delay in the delivery, the obligation

is extinguished in accordance with the provisions of article 1207.

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The same rules shall apply where the alternative

obligation includes more than two things.

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(1) Where in an obligation having for its subject-matter

a determinate thing, it is competent to the debtor to release himself

by offering another thing, such obligation is said to be potestative.

(2) In any such case the creditor may only demand the thing

specified in the agreement.

(3) If such thing perishes, the obligation is extinguished,

saving any other provision of the law in cases where the debtor is in

default for delay in the delivery of the thing, or the thing perishes

through his fault.

§ IV.O F J OINT AND S EVERAL O BLIGATIONS

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Joint and several liability is not presumed. If not declared

by law, it must be expressly stipulated.

O F J OINT AND S EVERAL C REDITORS

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An obligation is joint and several in favour of two or more

creditors when it expressly vests each of such creditors with the

right of demanding the payment of the whole sum due, and the

payment made to any one of them discharges the debtor, even

though the benefit accruing from the obligation may be divided

between the several creditors.

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It shall be at the option of the debtor to pay any one of the

joint and several creditors unless previous notice shall have been

given to him by one of such creditors, by means of a judicial

demand or other judicial act.

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(1) Every act which interrupts prescription with regard

to one of the joint and several creditors shall also benefit the other

creditors.

(2) The suspension of prescription in favour of one of the joint

and several creditors shall not benefit the other creditors.

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If one of the joint and several creditors remits the debt,

the release shall only be operative with regard to the share of such

creditor.

O F J OINT AND S EVERAL D EBTORS

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Debtors are jointly and severally liable when they are all

bound to the same thing in such a way that each of them may be

compelled to discharge the whole debt, and the payment made by

one of them operates so as to release the others as against the

creditor.

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An obligation may be joint and several even though one of

the debtors is bound differently from the others for the payment of

the same thing, as when the obligation of one is conditional and

that of the other is pure and simple, or when one is allowed a time

for payment which is not granted to the other, or when the debtors

are bound to pay in different places.

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The creditor may enforce his claim against any of the joint

and several debtors, at his option, and it shall not be lawful for the

debtor to set up the benefit of division.

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A judicial demand made against one of the joint and

several debtors shall not operate so as to bar the creditor from

bringing a similar action against any of the others, even though, in

making the first demand, the creditor shall not have expressly

reserved such right

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A demand for the payment of interest, where competent,

made against one of the joint and several debtors, shall cause

interest to run against all the debtors.

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(1) Where proceedings have been taken by the creditor

against a co-debtor jointly and severally liable, it shall be lawful

for such co-debtor to set up all such pleas as are personal to

himself, as well as those which are common to all the other co-

debtors.

(2) Nevertheless, such co-debtor may not set up any pleas

which are purely personal to any one only of the other co-debtors.

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An acknowledgment of the debt by one of the joint and

several debtors, and every other act capable of interrupting

prescription with regard to any one of such debtors, shall interrupt

prescription also with regard to the other debtors and their heirs.

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(1) An acknowledgment of the debt by one of the heirs

of one of the joint and several debtors, and every other act executed

against such heir, shall not, even though such acknowledgment or

act may interrupt prescription with regard to such heir, interrupt

prescription with regard to the other co-heirs, even though the debt

be a hypothecary debt, unless the obligation be indivisible.

(2) The interruption of prescription against one of the heirs of

one of the joint and several debtors, shall not be operative against

the other co-debtors except with regard to the part of the debt for

which such heir is liable.

(3) Nevertheless, where prescription has been interrupted

against all the heirs of the deceased co-debtor, such interruption

shall be operative against all the surviving co-debtors for the whole

debt.

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(1) Where the thing due perishes through the fault of

one or more of the joint and several debtors, or during the time in

which he or they is or are in default for delay in delivering the

thing, the other co-debtors shall not be released from the obligation

of paying the value thereof, but they shall not be liable for

damages.

(2) The creditor can only claim damages from the debtor or

debtors through whose fault the thing perished or who was or were

in default.

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Where one of the debtors becomes the heir of the creditor,

or when the creditor becomes the heir of one of the debtors, the

jo in t and sev eral de bt sh all , as a r esu lt o f suc h me rg er, b e

extinguished with regard to the portion of such debtor.

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Where the creditor consents to the division of the debt in

favour of one of the debtors, he shall not thereby be barred from

exercising his joint and several action against the other debtors in

respect of the whole debt.

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(1) The receipt of a portion of the debt in one or more

payments, from one or more of the joint and several debtors, shall

not imply any renunciation of the joint and several obligation,

either in regard to the debtor or debtors who shall have paid such

portion of the debt, or in regard to the others, even though the

creditor, in receiving such portion, shall not have expressly

reserved his joint and several action or his rights in general.

(2) The same rule shall apply with regard to any judicial

demand made by the creditor against one or more of the co-debtors

for a portion of the debt.

(3) Such renunciation shall not be presumed, even if the sum

received or claimed is equal to the share of the debt to which the

debtor who has paid, or against whom the demand for payment is

made, would be liable as between himself and the other co-debtors.

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The obligation contracted jointly and severally in favour

of the creditor, is ipso jure divided among the debtors who,

amongst themselves, are bound each for his share only.

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(1) Where one of the co-debtors has wholly discharged a

joint and several debt, he may only claim from the other co-debtors

the share of each of them, together with interest as from the day of

payment, notwithstanding any assignment of rights.

(2) Where one of such other co-debtors is insolvent, the loss

occasioned by such insolvency shall be apportioned amongst all the

solvent co-debtors, including the one who has made the payment, in

proportion to each one’s share of the debt.

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Where the creditor has renounced his joint and several

right of action with respect to one of the debtors, and one or more

of the other debtors becomes or become insolvent, the shares of

those who are insolvent shall be apportioned amongst all the

debtors, including those previously discharged by the creditor from

their joint and several liability, in proportion to each one’s share of

the debt.

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Where the matter in regard to which the joint and several

liability has been contracted, concerns only one of the co-debtors,

such co-debtor shall be liable for the whole debt towards the other

co-debtors, and the latter, in relation to such co-debtor, shall be

considered merely as sureties.

§ V.O F D IVISIBLE AND I NDIVISIBLE O BLIGATIONS

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An obligation is divisible or indivisible according as to

whether the thing or fact forming the subject-matter thereof, is or is

not susceptible of division, physically or intellectually.

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An obligation is indivisible if, although the thing or fact

forming the subject-matter thereof is of its nature divisible, the

manner in which such thing or fact has been considered in the

obligation does not admit of a performance in part.

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An obligation shall not be deemed to be indivisible solely

on the ground that it is a joint and several obligation.

O F D IVISIBLE O BLIGATIONS

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(1) An obligation, although susceptible of division, must

be performed, as between the creditor and the debtor, as if it were

indivisible.

(2) The divisibility shall only be applicable in regard to their

heirs, who can claim or are liable to pay the debt only to the extent

of the shares competent to them, or for which they are liable as

representing the creditor or the debtor.

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(1) The rule as to the divisibility of the obligation in

regard to the heirs of the debtor shall not apply in the following

cases

(a) when a determinate thing is due;

(b) when, under the instrument of title, one of the heirs

alone is charged with the performance of the

obligation;

(c) when from the nature or the subject-matter of the

obligation or from the purpose of the agreement it

appears that the intention of the parties was that the

debt should not be discharged in separate parts.

(2) In the cases referred to in paragraphs (a) and (b) of sub-

article (1) of this article, the heir who is in possession of the thing,

or who is alone charged with the debt, and, in the case referred to in

paragraph (c) of that sub-article, each of the heirs, may be sued for

the whole, saving his right of relief against the other co-heirs.

O F I NDIVISIBLE O BLIGATIONS

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(1) Where two or more persons have jointly contracted

an indivisible debt, each of such persons is liable for the whole of

the debt, although the obligation has not been contracted jointly

and severally.

(2) The same rule shall apply with regard to the heirs of a

person who has contracted a similar obligation.

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(1) Each of the heirs of the creditor may demand the

entire fulfilment of an indivisible obligation.

(2) He cannot alone remit the whole of the debt, or receive,

instead of the thing, the value thereof.

(3) Where one of the heirs has alone remitted the debt, or

received the value of the thing, it shall not be lawful for any of the

other co-heirs to demand the indivisible thing without taking into

account the portion of the heir who has remitted the debt or

received the value.

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The heir of the debtor, on being sued in respect of the

whole debt, may demand an adjournment to join his co-heirs as

defendants in the suit, provided the debt be not of such nature that

it can only be discharged by the heir so sued, in which case

judgment may be given against such heir alone, saving his right of

relief against the other co-heirs.

§ VI. O F O BLIGATIONS W ITH A P ENALTY C LAUSE

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A penalty clause is a clause whereby a person, for the

purpose of securing the fulfilment of an agreement, binds himself

to something in case of non-fulfilment.

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(1) The nullity of the principal obligation produces the

nullity of the penalty clause.

(2) The nullity of the penalty clause does not produce the

nullity of the principal obligation.

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(1) The penalty represents the compensation for the

damage which the creditor sustains by the non-performance of the

principal obligation.

(2) The creditor may sue for the performance of the principal

obligation instead of demanding the penalty incurred by the debtor.

(3) He cannot demand both the principal thing and the penalty,

unless the penalty shall have been stipulated in consideration of

mere delay.

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(1) Where the obligation consists in forbearing to do

something, the penalty becomes due as soon as the contravention

takes place.

(2) Where the obligation could not be performed except at a

certain time, the penalty shall be incurred as soon as such time

expires, unless another time has been fixed by agreement.

(3) In any other case, the penalty shall be incurred when the

debtor is put in default as provided in article 1130.

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(1) It shall not be lawful for the court to abate or

mitigate the penalty except in the following cases

(a) if the debtor has performed the obligation in part, and

the creditor has expressly accepted the part so

performed;

(b) if the debtor has performed the obligation in part, and

the part so performed, having regard to the particular

circumstances of the creditor, is manifestly useful to

the latter. In any such case, however, an abatement

cannot be made if the debtor, in undertaking to pay the

penalty, has expressly waived his right to any

abatement or if the penalty has been stipulated in

consideration of mere delay.

(2) Where an abatement is to be made under this article, the

penalty shall be reduced in proportion to the unperformed part of

the obligation.

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Where the subject-matter of the principal obligation

contracted with a penalty clause is an indivisible thing, the penalty

is incurred even where only one of the heirs of the debtor infringes

the obligation; and in such case, the penalty may be claimed either -

(a) against the defaulter, for the whole amount, or

(b) against each co-heir for his respective share, or, where

a hypothecary action is competent, even for the whole

amount, saving the right of relief against the defaulter.

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(1) Where the principal obligation contracted with a

penalty clause is divisible, and one of the heirs of the debtor

infringes the obligation, the penalty shall be incurred only by such

heir, and only for the share of the principal obligation for which he

is liable, and no action shall lie against those who have performed

the obligation.

(2) The rule laid down in sub-article (1) of this article shall not

apply to cases where the penalty has been stipulated in order that

payment should not be made in part, and one of the co-heirs has

prevented the performance of the obligation in its entirety. In any

such case, such co-heir is liable for the entire penalty, and the

others are liable for their respective shares only, saving their right

of relief against the defaulter.

§ VII. O F FIDUCIARY O BLIGATIONS

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(1) Fiduciary obligations arise in virtue of law, contract,

quasi-contract,unilateral declarations including wills, trusts,

a s s u m p t i o n o f o ff i c e o r b e h a v i o u r w h e n e v e r a p e r s o n ( t h e

''fiduciary'') -

(a) owes a duty to protect the interests of another person

and it shall be presumed that such an obligation where a

fiduciary acts in or occupies a position of trust is in

favour of another person; or

(b) has registered in his name, holds, exercises control or

powers of disposition over property for the benefit of

other persons, including when he is vested with

ownership of such property for such purpose; or

(c) receives information from another person subject to a

duty of confidentiality and such person is aware or

ought, in the circumstances, reasonably to have been

aware, that the use of such information is intended to

be restricted.

(2) A person who is delegated any function by a fiduciary and

is aware, or should, from the circumstances, be aware, of the

fiduciary obligations shall also be treated to be subject to fiduciary

obligations.

(3)

Fiduciary obligations arise from behaviour when a person -

(a) without being entitled, appropriates or makes use of

property or information belonging to another, whether

for his benefit or otherwise; or

(b) being a third party, acts, being aware, or where he

reasonably ought to be aware from the circumstances,

of the breach of fiduciary obligations by a fiduciary,

and receives or otherwise acquires property or makes

other gains from or through the acts of the fiduciary.

(4) Without prejudice to the duty of a fiduciary to carry out his

obligations with utmost good faith and to act honestly in all cases, a

fiduciary is bound, subject to express provision of law or express

terms of any instrument in writing excluding or modifying such

duty, as the case may be -

(a) to exercise the diligence of a bonus pater familias in

the performance of his fiduciary obligations;

(b) to avoid any conflict of interest or any conflict of trust

or fiduciary obligations;

(c) not to receive undisclosed or unauthorised profit from

his position or functions nor permit any other person to

do so, nor enter into any transaction related to the

property, directly or indirectly, unless authorised to do so

by the instrument creating the fiduciary obligation or

permitted by a person or authority empowered to approve

such dealings under the instrument or applicable law or

as otherwise authorised by the Court

Provided that any references to "the Court" shall be

construed as references to the Civil Court (Voluntary

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Jurisdiction Section) unless otherwise indicated or unless

the context refers to any court seized of any matter in

which case it is the court where the matter arises;

(d) to act impartially when the fiduciary duties are owed

to more than one person;

(e) to keep any property as may be acquired or held as a

fiduciary segregated from his personal property and

that of other persons towards whom he may have

similar obligations and to affect a change in the

registration of any relevant property, as may be required

for such purpose;

(f)

to maintain suitable records in writing of the interest

of the person to whom such fiduciary obligations are

owed;

(g) to render account in relation to the property subject to

such fiduciary obligations;

(h) to return on demand any property held under fiduciary

obligations to the person lawfully entitled thereto or as

instructed by him as otherwise required by the written

instrument regulating the fiduciary obligation or by

applicable law, and for such purpose, execute such

agreements, including any public deed, or other

instruments and, or effect a change in the registration of

any relevant property, as may be required;

(i)

to return any property held under the fiduciary

obligations upon the termination of the fiduciary

obligations to the person lawfully entitled thereto, as

required by the written instrument regulating the

fiduciary obligation or by applicable law, and for such

purpose, execute such agreements, including any

public deed, or other instruments and, or effect a

change in the registration of any relevant property, as

may be required;

(j)

to keep confidential the affairs of the person to whom

fiduciary duties are owed, subject to the fiduciary’s

duty to provide information to the beneficiary of the

specific fiduciary obligation or to other persons in

accordance with and subject to any restrictions

contained in the written instrument, if any, giving rise

to the fiduciary obligation with reference to this sub-

article, unless the fiduciary is given consent from the

person to whom fiduciary obligations are owed to

disclose such information

Provided that a fiduciary has the right to declare on

any written instrument or when carrying out any act,

that he is acting as a fiduciary in such context and such

declaration shall not be considered to be a breach of

this sub-article; and

(k) to carry out the designated purpose, where property has

been entrusted to him.

(5) In addition to any other remedy available under law, a

person subject to a fiduciary obligation who acts in breach of such

obligation shall be bound to return any property together with all

other benefits derived by him, whether directly or indirectly, to the

person to whom the duty is owed.

(6) The obligation to return property derived from a breach of a

fiduciary duty shall apply also to all property into which the

original property has been converted or for which it has been

substituted.

(7) Subject to the provisions of sub-article (8), where the

competent court, in any proceedings, finds that a person owns, has

registered in his name, holds, exercises control or has powers of

disposition over property and is bound by fiduciary obligations

arising in any manner in relation to such property, the court may

make any order or declaration in favour of or for the benefit of such

persons and under such terms and conditions as it considers

appropriate in the circumstances to protect the beneficiary of such

obligations under the provisions of this Title and any special law

including

(a) to order the transfer, restitution or delivery of any

property, or the change in the registration thereof, to

another fiduciary or order that it be held jointly with

another fiduciary;

(b) to terminate the powers of disposition of property;

(c) to order the fiduciary to give adequate security;

(d) to establish a trust in relation to property subject to

fiduciary obligation and to establish the terms of such

trust;

(e) to rescind any transfer or other transaction or declaring

the same null and void; or

(f)

imposing damages on the fiduciary.

(8) The court shall also have such powers, whether the

proceedings are instituted under article 1124E or under any other

provision of law, by any beneficiary, a successor in title of such

beneficiary, a creditor of such beneficiary when such creditor may

exercise the rights of the beneficiary under applicable law, or by

any other person whom the court considers to be entitled under the

relevant fiduciary obligation, as the case may be, and on the basis

of the demands in the relevant proceedings. Where a third party

acquires any property under an onerous title or acquires rights over

any property owned, held or registered in the name of a fiduciary,

he shall not be prejudiced by any remedy granted by the court to

any person as aforesaid

Provided that the third party who acquires any property

pursuant to this sub-article was not aware of that he was dealing

with a fiduciary.

(9)

Fiduciary duties may, in particular cases, be implicitly

waived or varied in certain circumstances, such as

(a) the method of engagement of the fiduciary, in

particular where the fiduciary is engaged for two or

more purposes, functions or offices or where the

fiduciary is engaged for a purpose, function or office

at the same time as when the fiduciary is granted an

entitlement;

(b) the scope, purposes and contexts of the fiduciary

obligations imposed;

(c) the handing over of property, by delivery, registration

in name of another person, assignment or transfer, to

or for the benefit of a beneficiary’s creditor for

purpose of security or other purpose which is distinct

from that of the beneficiary; or

(d) the manner of the acceptance or assumption or

undertaking of the fiduciary obligations.

(10) Where there is an express waiver of fiduciary obligations as

stated in sub-article (4) or an implicity waiver as stated in sub-article

(9), the fiduciary may, in case of doubt, apply for directions from the

competent court on how to act in the circumstances. The court shall

give due regard to the intentions of the person establishing or imposing

the fiduciary obligations and to the interests of both the fiduciary and

the beneficiary.

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(1) Where a third party is aware that a fiduciary is vested

with ownership, has registered in his name, holds, exercises control or

powers of disposition over property subject to fiduciary obligations,

third parties may, in good faith, act in relation to the fiduciary as

though he were the absolute owner thereof.

(2) A third party who acquires property under an onerous title as

provided for in sub-article (1) shall not be affected by the fiduciary

obligations to which the said property is subject, unless otherwise

agreed upon.

(2A) Where a third party acquires property under gratuitous title

as provided for in sub-article (1) from a fiduciary who acts in

breach of the fiduciary obligation or where the third party has

acquired property under gratuitous title to the detriment of a

beneficiary, the third party shall be subject to the same fiduciary

obligations which the fiduciary was subject to, which shall take

effect when the third party becomes aware or where he reasonable

ought to have become aware from the circumstances of the breach

of the fiduciary obligations

Provided that the fiduciary obligations which the third party

is subject to shall be limited to the extent of the breach or

unauthorised gain, unless the Court provides otherwise pursuant to

any of the remedies in article 1124A

Provided further that the performance of the fiduciary

obligations in accordance with the terms and conditions that the

fiduciary is subject to shall not be considered to be gratuitous for the

purpose of this article.

(3) A person dealing with a fiduciary in relation to property

subject to fiduciary obligations need not -

(a) enquire into the terms and conditions of his authority,

except in the case of a gratuitous transaction; or

(b) obtain the consent of the person to whom the fiduciary

duties are owed or any other person,

and shall, subject to being in good faith, be entitled to rely on

declarations made by the fiduciary with regard to his authority.

(3A) Any third party dealing with a fiduciary in a transaction

shall be entitled to enquire about the purposes of the fiduciary

obligation, including the obligation of not exceeding the value

raised by the transaction, or otherwise relating to the propriety

subject to the transaction or the applicability of the funds in

question.

(4) The fiduciary may furnish to any person dealing with him a

certificate containing the following information without being in

breach of any confidentiality obligations

(a) that the authority exists, the date the relevant

instrument was executed and that the authority has not

been revoked;

(b) a declaration that he is authorised to carry out the

transactions being entered into; and

(c) the identity and address of the fiduciary.

(5) Any fiduciary who issues any certificate containing any

statement which he knows or ought to know is false shall be guilty

of an offence and shall on conviction be liable to the punishment of

imprisonment for a term not exceeding two years or to a fine

(multa).

(6) Where a fiduciary is vested with ownership, has registered

in his name, holds, exercises control or powers of disposition over

property informs a third party with whom he is dealing that he is

acting as a fiduciary, the third party is otherwise aware or should

reasonably be aware, the fiduciary shall not be personally liable for

the obligations entered into with such third party, other than those

entered into in the exercise of his obligations. Where the third party

is unaware of the fiduciary obligations, the fiduciary shall, subject

to any terms which may have been stipulated or which otherwise

apply under the applicable law, be personally liable to such third

party in respect of any obligation entered into.

(7) The fiduciary shall have a right of recourse against the

beneficiary where contemplated in the provisions of this Code or in

any special law, by way of indemnity against such liability unless

he has acted in breach of his duties, in which case he shall not be

entitled to be indemnified.

(8)

A fiduciary shall be presumed to have all the powers at law

which are required for him to perform his fiduciary obligations

towards beneficiaries or purposes.

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(1) Where a person is vested with ownership, has

registered in his name, holds, exercises control or powers of

disposition over property subject to fiduciary obligations, such

property shall constitute a distinct and separate patrimony,

consisting of all relative rights and obligations with respect thereto,

and such property shall not be subject to the claims or rights of

action of the fiduciary’s personal creditors, nor of his spouse or

heirs at law, except as stated in the provisions of this Code or of

special laws.

(2) Fiduciary ownership of property is ownership as

contemplated by Title II of Book Second of this Code in so far as

third parties are concerned, but which is modified by the provisions

of this Title and any special laws and other provisions of this Code

which may be applicable, in so far as it is subject to obligations

towards and for the benefit of another person, referred to as a

beneficiary, or for the achievement of a purpose, or both. Such

modifications imply restrictions and limitations on the right of

ownership consistent with the provisions of this Title, the special

laws on trusts and other provisions of this Code.

(3) Where property subject to fiduciary obligation is in the

possession of a fiduciary and owned by the beneficiary, the

provisions of this Code or of any other special law governing their

relationship shall apply in accordance with the terms and conditions

established by the fiduciary and the beneficiary

Provided that such terms and conditions may be

modified in terms of the provisions of this Title for the protection of

the beneficiary and, or the achievement of the obligation.

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Where a fiduciary is vested with ownership of a property,

has it registered in his name, holds, exercises control or powers of

disposition over such property and for any reason, ceases to act as

fiduciary and is thereafter replaced by another fiduciary, the latter

shall continue to perform the same fiduciary obligations, as may be

applicable at the relevant time

Provided that

(a) the transfer of rights and obligations with respect to

the property subject to fiduciary obligations shall take

place in favour of beneficiaries and third parties upon

the execution of a written instrument between the

fiduciary ceding his fiduciary obligation and the

fiduciary replacing him. The written instrument shall

specify the property subject to fiduciary obligations,

and shall empower the new fiduciary to transfer all

rights and obligations, including possession and, or,

delivery of the property in favour of the beneficiary

and any third party, as the case may be, except as

stated in paragraphs (d) and (e);

(b) for any rights over immovable property to be validly

vested in the new fiduciary, the execution of a public

deed shall be required;

(c) the sole consideration for the said transaction shall be

that referred to in article 958L, which shall apply

mutatis mutandis in case of fiduciary obligations other

than those arising from trusts, and notwithstanding any

other law it shall not be required to state in the relative

instrument, including any public deed, the value of the

property being transferred or delivered;

(d) the provisions of this article shall also apply mutatis

mutandis to the transfer of a cell from one organisation

to another or the constitution of a cell as a new

organisation under articles 20A or 20B of the Second

Schedule, as the case may be;

(e) all rights and obligations, including any contracts

which may be in force, shall continue to operate in

accordance with their terms with reference to the

property subject to fiduciary obligations and shall

accrue and be binding on the new fiduciary upon the

transfer and, or delivery to him of the property in

accordance with applicable law and any written

instrument regulating the fiduciary obligations and the

property subject to fiduciary obligation and this

without the need of any notice to or consent of any

other person except as provided in this sub-article or

applicable law;

(f)

the fiduciary who ceases to act as a fiduciary shall no

longer be entitled to all the rights and powers and,

subject to paragraph (g), shall be released from all the

fiduciary obligations related to the property subject to

fiduciary obligations, including any obligations under

any contracts, once he has carried out the transfer and

delivery of the property to the successor fiduciary after

obtaining all such consents as are required to terminate

his engagement as fiduciary under any written

instrument and observing all formalities under

applicable law;

(g) the fiduciary who ceases to act as a fiduciary shall not

be released of his obligations towards the beneficiary

with respect to any property subject to fiduciary

obligations he may not have transferred, delivered or

accounted for or which may come into his possession

thereafter or for any breaches of fiduciary obligations

when he was acting as fiduciary;

(h) the fiduciary who ceases to act as a fiduciary shall not

be released from any obligations towards third parties

which

(i) he has expressly entered into in his own personal capacity

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and interest and not in a fiduciary capacity; or

(ii) he is personally liable for under the provisions of this

Title towards a third party who was not aware he was

acting as a fiduciary, unless the third party expressly

releases him from liability;

(i)

the appointment of another fiduciary, as aforesaid,

shall not be subject to the provisions on assignment of

rights nor constitute a novation under the provisions of

this Code but shall be regulated by this article and the

provisions of the Trusts and Trustees Act, when

applicable;

(j)

any undertaking, guarantee, hypothec, pledge or other

forms of security granted by the fiduciary or over or in

relation to the property shall not be affected in any

manner by the substitution of a fiduciary and shall

continue to attach to the property in accordance with

its terms and the applicable law and when property

subject to a hypothec or privilege is the subject of a

transaction where another fiduciary replaces a

fiduciary, the fiduciary replacing the previous

fiduciary and the provisions of articles 2070 to 2083

shall not apply

Provided that this paragraph shall not apply

where the retiring fiduciary is already a third party in

possession in which case articles 2070 to 2083 shall apply;

(k) the fiduciary ceasing his functions or the replacing

fiduciary shall

(i)

notify interested third parties of such

substitution, at what time and to what extent, while

abiding with any confidentiality obligations regarding

beneficiaries and their interests;

(ii) where rights over immovable property

are subject to fiduciary obligations, execute a public

deed with the fiduciary who has ceased to perform his

fiduciary obligations to record that the fiduciary

obligations relating to such property have been

transferred to another fiduciary. Nevertheless, if for any

reason the fiduciary ceasing his functions is not able to

appear on such public deed and the property is in the

possession of the replacing fiduciary, the latter may state

such facts as are known to him, confirm that such

property is in his possession and shall declare by means

of a written declaration or notification, his acquisition of

title over the property and the undertaking of the

fiduciary obligations. The transfer of ownership of such

property shall take place upon the execution of such

public deed and the same rules shall apply mutatis

mutandis to other registered movable property by the

execution of a private writing and any applicable

registrations or notifications as may be required by law;

(iii) in so far as any security forms part of the

property subject to fiduciary obligations and it is duly

registered in the Public Registry, the new fiduciary shall,

upon making a unilateral declaration relating to the

relevant security, in accordance with the applicable law,

register the substitution resulting from the written

instrument between himself and the former fiduciary in

the said register;

(l)

in cases where the substitution is ordered or approved

by a competent court or regulatory authority, then no

further consent or agreements which may otherwise be

required under this article, applicable law or the

written instrument regulating the fiduciary obligations,

shall be necessary;

(m) the fiduciary who has ceased to perform his functions

shall be entitled to be indemnified for liabilities,

expenses or losses he may incur with reference to the

property subject to fiduciary obligations even after he

has ceased to perform his functions except for any

breaches thereof;

(n) where a fiduciary dies in the course of performing his

fiduciary obligation

(i)

his universal heir who has reached

majority and is capable at law, or if more than one, each

one of such heirs severally, shall be deemed to be

executors ex lege of the property and shall immediately

transfer or deliver the property to a successor fiduciary

or the beneficiary;

(ii) should the heir fail to perform the duties

in sub-paragraph (i) within thirty (30) days, extendable

by the Court, he shall be considered to be the temporary

successor fiduciary and shall have the same obligations

towards the beneficiaries as the deceased fiduciary until

he performs his obligations as aforesaid;

(iii) should the heir be unable to perform his

duties in sub-paragraph (i) for any reason not

attributable to himself, he shall apply to the competent

court providing the relevant information and seeking an

order as stated below;

(iv) when the deceased fiduciary has

appointed a testamentary executor, the above duties, and

all relative powers to so act, shall bind only the executor,

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unless the executor is also a universal heir in which case

sub-paragraph (i) shall apply, such testamentary

executor shall be deemed to have all the necessary

powers for the purposes solely of recovering,

transferring or returning the property to another

fiduciary or to the beneficiary;

(v)

notwithstanding

the

above,

a

beneficiary, the heirs, the executor, as the case may be,

may apply to the Court to confirm their powers or may

appoint an ad hoc testamentary executor at any time, to

act for the estate of the deceased fiduciary for the

purposes of recovering, transferring or returning the

property to another fiduciary or the beneficiary and the

competent court may confirm to which property such

powers refer or may accede to such request

notwithstanding any contestation of the will or his

appointment;

(vi)

the successor fiduciary is the person

A.

designated in any instrument

governing the fiduciary obligations; or

B.

designated in accordance with any

applicable law; or

C.

appointed by the Court for such

purposes, even if only temporarily for this

purpose, on the demand by application of any

interested party;

(o) where the fiduciary is a legal person which is declared

bankrupt, dissolved or wound up, such obligations

shall bind the last directors jointly and severally or, if

a liquidator has been appointed, the liquidator, as the

case may be, and the provisions of paragraph (j) shall

apply mutatis mutandis;

(p) where there is more than one fiduciary who holds,

exercises control or powers of disposition over

property for a beneficiary, such property shall, by

operation of law, consolidate in the ownership of the

remaining fiduciary or fiduciaries on the death,

resignation or removal of a co-fiduciary. The

remaining fiduciary or fiduciaries shall execute a

unilateral declaration by public deed or other writing

in accordance with applicable law, which shall be

registered in the relevant register, so as to declare the

consolidation in his or their name of the title or control

of such property and the consolidation shall thereon

take place without the need of any other formality.

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(1) It shall be competent to any beneficiary, in order to

enforce fiduciary obligations owed to him, to exercise a right of

action on the basis of the provisions of this Title.

(2) The demand may be made together with any other action

available under the provisions of this Code or any other law and

where such specific right of action is not exercised, the remedies

contemplated herein may also be demanded by an additional

application to the Court, at any time of the proceedings until the

award of a final judgement by the competent court or the Court of

Appeal.

(3) In the case of a fiduciary obligation undertaken solely

for the achievement of a purpose and in the absence of any

beneficiary, the above right of action may be exercised by any person

or body granted the power to protect, supervise or enforce the

purpose in the instrument creating the obligation or, in the case of an

obligation undertaken by a public benefit organisation, also by the

State Advocate.

Laws of Malta — Chapter 16 — CIVIL CODE

(1) Notwithstanding any provision of this Code or any

other law, an action brought against a fiduciary, or a person

considered to be a fiduciary under the provisions of article 1124A -

(a) in respect of any fraud or dishonesty to which such

person was a party or of which he had knowledge; or

(b) for the recovery from the fiduciary, or any person

considered to be a fiduciary as aforesaid, of any

property subject to fiduciary obligations or previously

received by the fiduciary and converted to his use, or

for benefits or gains received as a result of breach of

duty,

shall not be barred by prescription, notwithstanding the

lapse of time.

The action shall not be barred by prescription irrespective of

whether it is brought against the fiduciary by a beneficiary who has

suffered prejudice as a result of the behaviour of the fiduciary in

relation to the same property or property substituting the same.

(2) Notwithstanding the provisions of article 2140 and without

prejudice to article 2155, a fiduciary or any person considered to be

subject to fiduciary obligations under this Title, shall not acquire

any property hel d und er fid uci ary ob lig atio ns b y mean s of

prescription.

(3) Where the fiduciary or beneficiary acts in bad faith under

the provisions of this Code, such act shall be sufficient for an

action not to be barred by prescription.

(4) With the exception of the matters falling within the scope of

the preceding sub-article for which there is no prescription, no

action may be brought against a fiduciary by a beneficiary for

breach of other fiduciary obligations referred to in sub-article (4) of

article 1124A, after the lapse of five years. Such period shall

commence -

(a) from the date of the delivery of a written account, or

part thereof, of the fiduciary activity to the

beneficiary; or

(b) from the date on which the beneficiary first had

knowledge of the occurrence of the breach of fiduciary

duty,

whichever is the earlier date

Provided that, if the account or part thereof is itself

fraudulent or dishonest then, with reference to the account or the

relevant part, the period shall only commence on the date referred to

in paragraph (b).

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(1)When a fiduciary obligation is imposed or undertaken

solely to achieve a designated purpose or purposes, including in the

case of a charitable trust or a purpose foundation, without there

being a beneficiary, such obligation shall be valid and enforceable,

and

(a) where there is more than one person who is so bound,

their obligations shall be joint and several; and

(b) in case of a foundation, the administrators of the

foundation shall be jointly and severally obliged to

perform the fiduciary obligations with the foundation

itself.

(2) The provisions of this Title shall be applied mutatis

mutandis and the obligations of the fiduciary shall be attributed

towards achieving the designated purpose in accordance with the

terms of the fiduciary obligation, any applicable law and the

provisions of this Title.

(3) When a fiduciary obligation is imposed or undertaken by

any religious organisation, Canon law and other legislation

governing religious organisations shall apply and in case of

inconsistency shall prevail over the provisions of this Title.

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(1)The beneficiary shall be bound towards the fiduciary

(a) to perform all such obligations as are agreed by him in

writing or as may be established in the relative

instrument under which the fiduciary obligations arise

or as may arise under the applicable law;

(b) to pay the remuneration to, and all expenses incurred

by, the fiduciary as may be established in the relative

instrument under which the fiduciary obligations arise

or are governed;

(c) subject to the provisions of any special law or this

Code which exclude remuneration, where not

expressly agreed in the relevant instrument

(i)

to pay such fees as are reasonable as is

established in agreement with all beneficiaries

who are of age or as may be established by the

Court; and

(ii) the fiduciary may reimburse himself or pay out

of the property subject to fiduciary obligations

all expenses properly incurred by him in

connection with his duties, in which case the

fiduciary shall notify the beneficiary, or the

persons required to be notified in the relevant

instrument or applicable law, of such

reimbursement in the manner and at the time

established by applicable law.

(2) The beneficiary must at all times act in good faith towards

the fiduciary irrespective of the manner by which or by whom the

fiduciary has been appointed.

(3) Subject to the terms of the instrument governing the

fiduciary obligations, the beneficiary shall, to the extent of the

property unless the beneficiary has agreed otherwise, indemnify the

fiduciary for any liabilities the fiduciary may incur in the carrying

out of his fiduciary duties except to the extent that the fiduciary is

guilty of negligence, wilful misconduct or fraud.

(4) Nothing in this article shall limit the rights or remedies of

the fiduciary under this Code or any other law arising from bad

faith or other harmful acts on the part of a beneficiary.

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(1) A fiduciary may, at any time, apply to the Court for

directions regarding the performance of his obligations.

(2) Upon such application the Court may issue any orders or

directions as it thinks fit.

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In the application of the provisions of this Title the

following principles shall apply

(a) when a fiduciary relationship is governed by particular

rules, whether because of the source and type of the

obligations or because of any special law, such

particular rules shall apply to the context and these

provisions shall apply as necessary to support the

interpretation of the said rules;

(b) it shall be presumed that these provisions operate

consistently with particular rules applicable to any

particular fiduciary relationship or obligation but, in

case of inconsistency, the particular rules shall prevail

over the provisions of this Title;

(c) the provisions of this Title shall apply to all fiduciary

obligations, which exist at the time of the coming into

force of these provisions, or any amendments thereof,

even if arising before such date, as well as any

fiduciary obligations arising thereafter

Provided that such provisions shall not apply

retrospectively where their effect is to deny or restrict

any vested right or create any liability where such did

not occur under law prior to such provisions coming

into force;

(d) where a fiduciary obligation is vitiated by a breach or

attempted breach of law by the parties or any one of

them and is thereby rendered unenforceable due to the

falsity or illegality of the cause, the compliance by the

beneficiary or the fiduciary, or both, with such law or a

change in law resulting in the cause no longer being

false or unlawful, shall render the fiduciary obligation

enforceable with effect therefrom. In such cases, the

Court may give such interim orders it considers

appropriate to ensure compliance with the law or to

prevent the further abuse by the parties or any one of

them.

Sub-title IV

O F THE E FFECTS OF O BLIGATIONS

Laws of Malta — Chapter 16 — CIVIL CODE

Where any person fails to discharge an obligation which

he has contracted, he shall be liable in damages.

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(1) The obligation to give a thing carries with it the

obligation to deliver the thing, and to preserve it until the delivery.

(2) If the debtor is in default for delay in making the delivery,

the thing shall be at his risk and peril, even though before such

default it was at the risk and peril of the creditor.

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In case of non-performance of an obligation to do, the

creditor may be authorized to cause the performance thereof

himself at the expense of the debtor.

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Where the obligation is to forbear to do, the debtor who

infringes the obligation is liable in damages for the mere fact of

such infringement.

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Saving his action for damages, the creditor may demand

that anything done in breach of the obligation be undone, and may

be authorized to undo it himself at the expense of the debtor.

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(1) Where the obligation is to give or to do, and a time is

fixed in the agreement, the debtor is in default by the mere lapse of

such time, saving, as regards the payment of interest under article

1141, the provisions of that article.

(2) If no time is fixed in the agreement, or if the time expires

after the death of the debtor, the debtor or his heir is not put in

default except by an intimation by a judicial act.

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The debtor is also liable for damages if the thing which he

undertook to give or to do could only be given or done within a

certain time, and he has suffered such time to expire.

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(1) Saving any other provision of this Code relating to

deposits, the degree of diligence to be exercised in the performance

of an obligation, whether the object thereof is the benefit of only

one of the parties, or of both, is, in all cases, that of a bonus

paterfamilias as provided in article 1032.

(2) This rule, however, is applied with a lesser or a higher

degree of strictness in certain cases specified in this Code.

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The debtor, even though there has been no bad faith on his

part, shall be liable for damages, where competent, both for the

non-performance of the obligation as well as for the delay in the

performance thereof, unless he proves that the non-performance or

delay was due to an extraneous cause not imputable to him.

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The debtor shall not be liable for damages if he was

prevented from giving or doing the thing he undertook to give or to

do, or if he did the thing he was forbidden to do, in consequence of

an irresistible force or a fortuitous event.

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Subject to the exceptions and modifications hereinafter

specified, the damages due to the creditor are, generally, in respect

of the loss which he has sustained, and the profit of which he has

been deprived.

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The debtor shall only be liable for such damages as were

or could have been foreseen at the time of the agreement, unless the

non-performance of the obligation was due to fraud on his part.

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Even where the non-performance of the obligation is due

to fraud on the part of the debtor, the compensation in respect of the

loss sustained by the creditor, and of the profit of which he was

deprived, shall only include such damages as are the immediate and

direct consequence of the non-performance.

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Where the agreement provides that the party who fails to

carry it out shall pay a certain sum by way of damages, it shall not

be lawful to award to the other party a greater or lesser sum.

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Saving any other provision of law relating to suretyship or

partnership, where the subject-matter of the obligation is limited to

the payment of a determinate sum, the damages arising from the

delay in the performance thereof shall only consist in the interests

on the sum due at the rate of eight per cent per annum.

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The interest referred to in the last preceding article is due,

without the creditor being bound to prove any loss.

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(1) Where the obligation is of a commercial nature, or

the law provides that interest is to run ipso jure, interest shall be

due as from the day on which the obligation should have been

performed.

(2) In any other case, interest shall be due as from the day of an

intimation by a judicial act, even though a time shall have been

fixed in the agreement for the performance of the obligation.

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The interest fallen due may bear other interest either, in

virtue of the foregoing provisions, from the day of a judicial

demand to that effect, or in virtue of an agreement entered into

after the interest has fallen due, provided, in either case, interest be

due for a period not less than one year.

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It shall be competent to any creditor in order to obtain

what is due to him to exercise any right or action pertaining to his

d e b t o r, wi t h t h e ex c e p t i o n o f su c h r i g h t s o r a c t i o n s as a r e

exclusively personal.

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(1) It shall also be competent to any creditor in his own

name to impeach any act made by the debtor in fraud of his claims,

subject to the right of the defendant to plead the benefit of

discussion under the provisions of articles 795 to 801 of the Code

of Organization and Civil Procedure.

(2) Where such acts are under an onerous title, the creditor

must prove that there was fraud on the part of both contracting

parties.

(3) Where such acts are under a gratuitous title, it shall be

sufficient for the creditor to prove fraud on the part of the debtor

(4) The action competent to the creditors under this article

cannot be exercised against minors, except to the extent of any

benefit which they may have derived, saving any other right of

action competent to the creditors against any tutor who may have

taken part in the fraud.

Sub-title V

O F THE M ODES OF E XTINCTION OF O BLIGATIONS

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Saving the effects of the resolutive condition, and those

of prescription, obligations are extinguished by -

(a) payment;

(b) novation;

(c) remission of the debt;

(d) set-off;

(e) merger;

(f)

the loss of the thing;

(g) rescission.

§ I. O F P AYMENT

O F P AYMENT IN GENERAL

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Payment means the performance of an obligation, whether

the subject-matter of the obligation is to give or to do.

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(1) Every payment implies a debt, and what is paid

without being due may be recovered.

(2) Nevertheless no action for recovery shall lie if the payment

was made in discharge of a natural obligation.

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(1) An obligation may be extinguished by payment

made by any person concerned in it, such as a co-obligor or a

surety.

(2) An obligation may also be extinguished by payment made

by a third party not concerned in the obligation, provided such third

party acts in the name and for the discharge of the debtor, or, if he

acts in his own name, provided he shall not be subrogated to the

rights of the creditor.

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(1) A creditor cannot refuse payment tendered by a third

party, if the debtor is benefited thereby.

(2) The same rule shall be applicable even in the case of an

obligation to do, provided, in such case, the creditor is not

interested in having the obligation performed by the debtor himself,

and the performance is offered by the third party at the request of

the debtor.

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(1) Where the payment has for its object the transfer to

the creditor of the property of the thing paid, such payment shall

not be valid unless it is made by the person who is the owner of the

thing.

(2) Nevertheless, the payment of a sum of money, or of some

other thing which is consumed by use, cannot be recovered from

the creditor who has consumed such sum or thing in good faith,

although the payment has been made by a person who was not the

owner of the money or thing.

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Any payment made by a person incapable of alienating

may, in the interest of such person, be annulled.

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(1) Payment must be made to the creditor, or to a person

authorized by him, or by the court or by law, to receive it.

(2) A payment made to a person not so authorized becomes

valid if the creditor ratifies it or benefits thereby.

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Payment made in good faith to a person who is in

possession of the debt is valid, even though the possessor has

subsequently suffered eviction in respect of the debt.

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Payment made to the creditor is not valid if he is under any

disability to receive payment, unless the debtor proves that the

thing paid was applied to the benefit of such creditor.

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Payment made by a debtor to his creditor in contravention

of a garnishee order, or any other order of the court shall not be

valid with regard to the persons in whose favour the order was

issued or given; and such persons may, so far as their rights are

concerned, compel the debtor to pay again, saving his remedy

against the creditor.

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A creditor cannot be compelled to receive a thing different

from that which is due to him, although the value of the thing

tendered is equal, or even greater; or to receive payment of part of

the debt, although the debt is divisible.

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The debtor of a certain and determinate thing is discharged

by delivering it in the condition in which it is at the time of

delivery, provided he was not in default for delay before any

deterioration supervened, and such deterioration was not caused

through the fault of the debtor or of other persons for whom he is

responsible.

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Where the debt relates to a thing which is only determinate

as to its species, the debtor, in order to be discharged, is not bound

to deliver a thing of the best quality, but he cannot deliver a thing

of the worst quality.

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(1) Payment must be made at the place specified in the

contract.

(2) If no place is specified, and the thing due is certain and

determinate, payment must be made at the place where the thing

forming the subject-matter of the payment was at the time of the

contract.

(3) Where the thing to be given in payment is a sum of money

or any other thing which can, without expense, be carried or sent,

and both the creditor and the debtor reside in the same island,

payment must be made at the house of the creditor.

(4) In any other case payment must be made at the place of

abode of the debtor.

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In the case of rent, interest, or other periodical payments,

if it appears from receipts that the debtor has paid the sums falling

due at three consecutive periods, without any reservation as to

sums fallen due previously, the latter sums shall be presumed to

have been paid.

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The debt shall likewise be presumed to have been paid if -

(a) a general account has been taken between the parties

of what is due by the one to the other, at least three

times after the debt fell due, without any mention of

such debts or any other reservation including it; and

(b) the demand in regard to such debt is made after the

death of the debtor, or after a period of not less than

three years from the day of the acquittance relating to

the last general account.

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In each of the cases mentioned in the last two preceding

articles, the presumption of payment shall not arise if there are

circumstances from which it appears improbable that the debt was

paid, or from which it appears that there was some good reason for

not making a mention of the debt on the occasion of the payments

or accounts made or taken after the debt became due.

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(1) The expenses relating to the payment shall be at the

charge of the debtor.

(2) The payer may require that the acquittance be, at his

expense, recorded in a public deed.

O F P AYMENT WITH S UBROGATION

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A person who pays the debt of another person shall not be

subrogated to the rights of the creditor except in virtue of an

agreement, or by operation of law.

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(1) The payer shall be subrogated to the rights of the

creditor, by agreement -

(a) when the creditor subrogates the payer to all his rights

against the debtor, provided such subrogation is

expressly stated, and made simultaneously with the

payment;

(b) when the debtor borrows a sum for the purpose of

discharging his debt, and of subrogating the lender to

the rights of the creditor

Provided that such subrogation shall not be valid

unless -

(i)

the loan and the discharge are made by a public

deed,

(ii) it is stated in the deed of loan that the sum has

been borrowed in order to discharge the debt,

and

(iii) it is stated in the discharge that the payment has

been made with the money furnished for the

purpose by the new creditor.

(2) The subrogation referred to in paragraph (b) of sub-article

(1) of this article shall take place independently of the consent of

the creditor.

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Subrogation takes place by operation of law in favour

of -

(a) any person who, being himself a creditor, satisfies

another creditor having prior rights, by reason of

privilege or hypothec;

(b) any person who, having acquired any immovable

property, employs the price in paying the creditors

having hypothecary rights thereon;

(c) any person who, being bound with others or for others

for the payment of the debt, had an interest in

discharging it;

(d) any heir with the benefit of inventory who, with his

own money, has satisfied debts of the inheritance.

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Subrogation, whether by agreement or by operation of law,

takes place against both the sureties and the debtors; but shall not

operate to the prejudice of the creditor when he has only been paid

in part; and, in any such case, the creditor may claim the balance

due to him in preference to the person from whom he shall have

received the part payment.

O F A PPROPRIATION OF P AYMENTS

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(1) It shall be competent to any debtor owing several

debts to declare, in making a payment, that such payment is to be

applied to the discharge of a particular debt.

(2) Nevertheless, the debtor may not, without the consent of the

creditor, appropriate the payment to a debt which has not fallen due

in preference to a debt which has fallen due, in any case in which

the time for the discharge of the former debt is presumed to have

been agreed upon also in favour of the creditor.

(3) Nor may he appropriate the payment to the rent or interest

accruing due in respect of subsequent years in preference to the

rent or interest accrued due in respect of preceding years.

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(1) The debtor of a capital sum bearing interest cannot,

without the consent of the creditor, appropriate the payment to the

principal in preference to the interest.

(2) Any part-payment made generally on account of principal

and interest shall be first applied to the discharge of the interest.

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Where a debtor, owing several debts, accepts a receipt in

which the creditor has expressly applied the payment to a particular

debt, he may not demand that the payment be applied to any other

debt, unless there has been fraud or surprise on the part of the

creditor.

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Subject to the provisions of the foregoing articles, where

no appropriation is made in the act of payment, the following rules

shall be observed

(a) the payment shall be applied to an undisputed debt in

preference to a disputed debt;

(b) in case of several undisputed debts, the payment shall

be applied to the debt already fallen due at the time of

payment in preference to the debts not yet fallen due,

unless amongst the latter debts there is a debt for

which the debtor is liable to personal arrest, in which

case the payment shall be appropriated to such debt,

provided the time for payment was not agreed upon

also in favour of the creditor;

(c) with regard to debts fallen due, the payment shall be

appropriated to a debt for which the debtor is liable to

personal arrest, or, in the absence of any such debt, to

a debt bearing interest, in preference to other debts;

(d) the payment shall be appropriated to a debt secured by

suretyship in preference to another debt not so

secured; and to a privileged or hypothecary debt in

preference to a debt not secured by privilege or

hypothec;

(e) the payment shall be applied to the debt which the

payer owed as the principal or the sole obligor in

preference to a debt owing by him as surety for others

or as a joint and several debtor;

(f)

in any case not expressly provided for in the preceding

rules, the appropriation shall be made to the debt

which, at the time of payment, the debtor had the

greatest interest in discharging;

(g) where the debtor has no interest in discharging a

particular debt in preference to another, the

appropriation shall be made to the oldest debt: and in

the case of several debts contracted on the same day,

and falling due at different times, the debt first fallen

due shall be deemed to be the oldest;

(h) if all things are equal, the payment is applied in

discharge of each debt proportionately.

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Where the creditor obtains payment by causing the sale

of a thing charged with privilege or hypothec in security of his

claim, and receiving the proceeds thereof, the following rules shall

be observed

(a) the appropriation shall be made to the debt secured by

privilege or hypothec in preference to any other debt,

even if the debtor may have a greater interest in

discharging such other debt;

(b) if the thing was charged with a privileged and with a

hypothecary debt, the appropriation shall be made to

the privileged debt; and if it was charged with several

hypothecary debts, the payment shall be applied to the

debt secured by the oldest hypothec;

(c) if all things are equal, the payment is applied in

discharge of each debt proportionately.

O F T ENDER OF P AYMENT AND OF D EPOSIT

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(1) Where the creditor refuses to receive payment, the

debtor, or the person who can legally make payment, may, at the

expense of the creditor, deposit the sum or thing due in the manner

laid down in the Code of Organization and Civil Procedure.

(2) A deposit validly made shall be equivalent to payment, and

the thing deposited shall remain at the risk of the creditor.

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(1) The deposit shall not produce the effects stated in

the last preceding article unless it has been preceded by the refusal

of a valid tender.

(2)

The tender may be made even verbally.

(3) The payment so tendered shall be deemed to be refused if it

is not accepted within the time of four days from the day of the

tender.

(4) The time shall be of eight days, if one of the parties resides

in Malta and the other in Gozo or Comino.

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A tender shall only be valid if -

(a) it is made to the creditor capable of receiving payment

or to a person authorized to receive for him;

(b) it is made by a person capable of paying;

(c) it includes the whole sum due for capital and accrued

interest, and liquidated costs, and a further sum for the

unliquidated cost with a reservation to make up any

deficiency;

(d) the time, when stipulated in favour of the creditor, has

elapsed;

(e) the condition under which the debt was contracted, is

fulfilled;

(f)

it is made at the place where under the agreement, or,

in the absence of an agreement, according to law,

payment is to be made.

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(1) A deposit, so long as it is not accepted by the

creditor, may be withdrawn by the debtor, unless it shall have been

attached by a garnishee order sued out by the creditor or any other

person.

(2) Where the debtor withdraws the deposit, his co-debtors or

sureties are not discharged.

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Where the debtor has obtained a judgment declaring the

deposit to be valid, he can no longer, not even with the consent of

the creditor, withdraw the deposit to the prejudice of his co-debtors

or sureties.

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The creditor who has allowed the debtor to withdraw the

deposit after it had been declared valid, can no longer, for the

payment of the debt due to him, enforce any privilege or hypothec

with which such debt was secured; and such creditor shall no

longer enjoy a right of hypothec except from the day on which the

act whereby he agreed to the withdrawal of the deposit, being an

act made with the formalities necessary for creating a hypothec and

for being registered in the Public Registry, shall have been so

registered.

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(1) Notwithstanding the other provisions of this Sub-

Title or of any other law, where a final judgment is given by a court

ordering the payment of a sum of money to more than one person,

without specifically determining what sum of the total sum awarded is

to be paid to each person, and the judgment creditors are not joint and

several creditors, the debtor who has been so ordered to pay the sum

may free himself from such obligation and shall be exempt from the

payment of any further interest upon the sum ordered to be paid in the

judgment as from the date of deposit in court of the sum due by means

of a lodgement schedule if the following conditions are satisfied

(i)

within three (3) months from the date of the

judgment, the judgment creditors do not, on their own initiative

and without the need for any request to be made to them, give

joint instructions to the debtor or debtors, as the case may be,

by means of a judicial letter, as to how the sum adjudicated by

the court is to be divided amongst them and in the said judicial

letter they shall also give the debtor specific instructions on the

manner in which the sum due is to be paid which shall include

all information necessary to enable such payment to be made;

and

(ii) after the lapse of the aforesaid period of three (3)

months, the debtor deposits the sum due or, subject to sub-

article (4) any part thereof in respect of which he has not been

given instructions as provided in paragraph (i). The deposit

shall be at the expense of the debtor.

(2)

The lodgement schedule shall in all cases be filed in the

First Hall Civil Court except in cases where the sum deposited falls

within the competence of the Court of Magistrates, in which case such

lodgement schedule shall be filed in the Court of Magistrates.

(3)

Where there is more than one person entitled to the sum

ordered to be paid in the judgment, it shall be sufficient for the debtor to

serve the lodgement schedule upon at least one of the judgment creditors

and upon any one of the advocates or legal procurators who represented

any of the judgment creditors in the cause at the time of the judgment

and to cause the publication of such lodgement schedule in the

Government Gazette and in two daily newspapers, one of which shall be

in the Maltese language and the other in the English language.

(4)

Without prejudice to the generality of this article, a deposit

made for the purposes of this article may not be impugned on any of the

grounds provided in articles 1173 and 1175 or on the basis of a defect of

form, death of a party or the lack of deposit of any interest on the sum

adjudicated or of costs due according to the judgment

Provided that the rights of the judgment creditors in respect of

any sum not included in the deposit shall not be prejudiced by reason of

that exclusion.

(5)

Where the instructions provided for in sub-article (1)(i) are

not given by all the judgment creditors the debtor may elect either to

avail himself of the provisions of this article only in respect of those

creditors who have not given such instructions or in respect of all

judgment creditors or, of some of them.

(6)

Any one of the judgment creditors may, at any time and

without the consent of the other judgment creditors being required, file

an application to the court for the withdrawal of his share of the sum

deposited upon the court being satisfied of his share.

(7) This article shall apply in respect of all judgments even if

delivered before the coming into force thereof, sohowever that in respect

of judgments delivered before the coming into force of this article, the

period of three (3) months provided in sub-article (1)(i) and (ii) shall

commence to run from the day immediately after the day of the coming

into force of this article.

§ II. O F N OVATION

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Novation takes place -

(a) when the debtor contracts towards his creditor a new

debt, and this is substituted for the old one which is

extinguished;

(b) when a new debtor is substituted for the old one, who

is discharged by the creditor;

(c) when, in virtue of a new obligation, a new creditor is

substituted for the old one in regard to whom the

debtor is discharged.

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(1) Novation can only be effected between persons

capable of contracting.

(2) It is not to be presumed; the intention to effect it must

clearly appear.

(3) Novation by the substitution of a new debtor, may be

effected without the concurrence of the former debtor.

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(1) Novation shall not take place if the former

obligation is not extinguished, although it is modified.

(2) The mere indication made by a debtor of a person who is to

pay in his stead shall not operate as novation.

(3) Nor shall the mere indication made by a creditor of a person

who is to receive in his behalf operate as novation.

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(1) The acceptance of notes or other negotiable

securities in consideration of a former debt shall not operate as

novation unless it appears clearly from other circumstances that it

was intended to extinguish such former debt.

(2) Nor shall novation take place in respect of a debt which was

originally of a commercial nature, merely on the ground that such

debt is subsequently recorded in a notarial instrument, and secured

by a hypothec.

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The delegation by which a debtor gives to the creditor

another debtor, who binds himself towards the creditor, shall not

operate as novation, unless the creditor has expressly declared his

intention to release the debtor making the delegation.

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The creditor who has released the debtor making the

delegation shall have no relief against such debtor if the person

delegated becomes insolvent, unless the creditor has expressly

reserved his rights to that effect, or the person delegated was, at the

time of the delegation, already insolvent or bankrupt or about to

become bankrupt.

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Any privilege or hypothec securing the former debt shall

not extend to the substituted debt unless the creditor has made an

express reservation to that effect.

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Where novation takes place by the substitution of a new

debtor, the original privileges and hypothecs securing the debt shall

not affect the property of the new debtor.

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Where novation takes place between the creditor and one

of the joint and several debtors, the privileges and hypothecs of the

former debt may only be reserved as a charge on the property of the

party contracting the new debt.

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(1) The novation between the creditor and one of the

joint and several debtors shall release the other co-debtors, saving

the right of relief competent to the debtor contracting the new

obligation against the co-debtors in respect of their share of the

former debt discharged by him.

(2) A novation which takes place in respect of the principal

debtor shall discharge the sureties.

(3) Nevertheless, where the creditor demands the concurrence

of the co-debtors in the case referred to in sub-article (1) of this

article, or the concurrence of the sureties in the case referred to in

sub-article (2) of this article, and such co-debtors or sureties refuse

to accept the new agreement, the former debt shall continue to

subsist.

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(1) A delegated debtor who has accepted the delegation

cannot set up against his new creditor such pleas as he could have

set up against his original creditor, saving his right of relief against

the latter.

(2) The provisions contained in sub-article (1) of this article

shall not apply where the person making the delegation intended by

such delegation to make a gift to the person in whose favour the

delegation was made.

(3) Nor shall the said provisions apply with regard to pleas

depending on the condition of a person, such as the condition of a

minor, provided such condition existed at the time when the person

delegated accepted the delegation.

§ III. O F THE R EMISSION OF D EBTS

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(1) A remission or conventional discharge in favour of

one of the joint and several debtors shall discharge all the other co-

debtors, unless the creditor shall have made an express reservation

of his rights against them.

(2) Where such reservation is made, the creditor, in claiming

the debt, shall be bound to deduct the share of the release.

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(1) A remission or conventional discharge in favour of

the principal debtor shall discharge the surety.

(2) The release of the surety shall not discharge the principal

debtor.

(3) The release of one of the sureties shall not discharge the

other co-sureties except to the extent of the share in respect of

which they were entitled to seek relief against the co-surety so

released.

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Anything which the creditor has received from the surety

to release him from his undertaking shall be imputed to the sum

due, in discharge of the principal debtor and the other sureties.

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(1) The voluntary surrender of the original instrument

creating the debt, made by the creditor to the debtor, shall raise a

presumption of release, unless it is proved that the surrender was

made for some purpose other than that of discharging the debtor.

(2) The surrender of the aforesaid instrument made to one of

the joint and several debtors, produces the same effect in favour of

the other co-debtors.

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The mere absence of the reservation of a debt in an

acquittance relating to another debt shall not operate so as to raise a

presumption of the remission of the former debt.

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The surrender of the pledge shall not be sufficient to raise

a presumption of the remission of the debt.

§ IV.O F S ET-OFF

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(1) Where two persons are mutual debtors, a set-off

takes place between them.

(2) Set-off operates ipso jure, and even without the knowledge

of the debtors. The moment two debts exist simultaneously, they

are mutually extinguished to the extent of their corresponding

amounts.

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(1) Set-off shall only take place between two debts both

of which have for their subject-matter a sum of money or a

determinate quantity of fungibles of the same kind, and which are

both for a liquidated amount and exigible.

(2) A debt shall be deemed to be for a liquidated amount if it is

certain even with respect to the quantity thereof.

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Time for payment gratuitously granted shall not operate so

as to bar a set-off.

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Set-off takes place whatever may be the consideration of

either of the debts, except in the following cases

(a) when a demand is made for the restoration of a thing

of which the owner was unjustly deprived;

(b) when a demand is made for the return of a deposit, or

of a loan for use or commodatum;

(c) in the case of a debt in respect of maintenance not

subject to attachment.

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(1) It shall be competent to a surety to plead the set-off

of what the creditor owes to the principal debtor.

(2) It shall not be lawful, however, for the principal debtor to

plead the set-off of what the creditor owes to the surety.

(3) A joint and several debtor may not plead the set-off of what

is due by the creditor to a co-debtor except in respect of the share

of such co-debtor.

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(1) Where a creditor has assigned his rights to a third

party, and the debtor has unreservedly and unconditionally

accepted such assignment, such debtor may no longer set up against

the assignee any set-off which, before his acceptance of the

assignment, he could have set up against the assignor.

(2) Where, however, the assignment was not accepted by the

debtor, but notice thereof was served upon him, the assignment

shall not be a bar to the set-off except with regard to such debts as

are subsequent to the notice.

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Where one and the same person has several debts which

may be set off, the provisions of articles 1168, 1169 and 1171

relating to the appropriation of payments shall apply to the set-off.

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(1) Set-off shall not take place to the prejudice of the

rights acquired by a third party.

(2)

A person who, being a debtor, becomes a creditor after the

debt has been attached in his hands by a garnishee order sued out

by a third party, cannot set up a set-off to the prejudice of the party

suing out the order

Provided that nothing in this article shall prohibit a set-off of a

credit arising in the course of the granting of facilities referred to in

article 381(1)(f), (g) and (h) of the Code of Organization and Civil

Procedure.

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A person who has paid a debt owing by him which,

according to law, was extinguished by a set-off, may not in suing

for the payment of the claim owing to him in respect of which he

failed to plead the set-off, enforce, to the prejudice of third parties,

any privilege, hypothec or other security attached to his claim,

unless he had good grounds for not being aware of the claim which

would have set off his debt.

§ V.O F M ERGER

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Where the condition of creditor and that of debtor become

united in the same person, a merger takes place by operation of law

and both the claim and the debt are extinguished.

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(1) The merger which takes place in the person of the

principal debtor, shall benefit the sureties.

(2) The merger which takes place in the person of the surety,

shall not produce the extinguishment of the principal obligation.

(3) The merger which takes place in the person of one of the

joint and several debtors, shall not benefit the other co-debtors

except to the extent of the share for which such co-debtor was

liable.

§ VI. O F THE L OSS OF THE T HING DUE

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(1) Where a certain and determinate thing forming the

subject-matter of an obligation perishes, or is placed extra

commercium, or is lost so that it is absolutely not known whether it

exists, the obligation is extinguished, provided the thing perishes or

is placed extra commercium or is lost without the fault of the

debtor, and before he is in default for delay.

(2) Even where the debtor is in default for delay but has not

assumed the risk of fortuitous events, the obligation is extinguished

if the thing would have equally perished in the possession of the

creditor if it had been delivered to him.

(3) The debtor must prove the fortuitous event which he

alleges.

(4) Whatever may have been the manner in which a thing

stolen perished or was lost, its loss shall not exempt the person

stealing it from the obligation of restoring its value.

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Where the thing perishes or is placed extra commercium or

is lost without the fault of the debtor, the debtor is bound to assign

to the creditor any right or action for damages, to which he may be

entitled in respect of such thing.

§ VII. O F R ESCISSION

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(1) The rescission of a contract shall, unless the law

provides otherwise, operate so as to restore the parties to the

condition in which they were before the contract.

(2) Each party shall be bound to restore to the other any thing

received or obtained in consequence or by virtue of the contract.

(3) With regard to the fruits collected or the interest received

up to the date of the demand for rescission, the court may, having

regard to the circumstances of the case, direct a set-off of such

fruits or interest.

(4) Where the contract is rescinded on the ground of fraud or

violence, the party guilty of such fraud or violence shall also be

bound to restore to the other party the fruits which might have been

collected, and which, through his fault or negligence, have not been

so collected.

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(1) Rescission shall operate also against third parties in

possession.

(2) It annuls any right or burden which may have been granted

or imposed over or on the thing which, in consequence of the

rescission, is to be restored.

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(1) Where an instrument contains several parts

independent of each other, it shall be lawful to demand the

rescission of one of such parts only.

(2) Where the several parts of the instrument are in any way

connected with each other, and the plaintiff has sued for the

rescission of one part only, it shall be lawful for the defendant to

demand, against the plaintiff or, if there are other parties interested

in the parts not included in the action, against such other parties,

the rescission of the whole instrument, or of all such parts as are

connected with each other.

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Any agreement which is defective by reason of the absence

of any of the conditions essential to the validity of contracts, or

which is expressly declared by law to be null, shall be subject to

rescission.

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Rescission on the ground of lesion cannot be demanded by

a person who has attained majority.

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(1) With regard to minors, lesion shall be a good ground

for rescission, in any kind of agreement not expressly excepted by

law, and whatever the extent of the lesion, unless it is of very small

consequence.

(2) Nevertheless, it shall not be competent even to a minor to

sue for rescission on the ground of lesion where such lesion is the

effect of a fortuitous and unforeseen event.

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Rescission on the ground of lesion shall also be allowed in

favour of a minor if, although no actual loss to his prejudice is

made to appear, it is shown that the agreement renders him liable to

litigation or to considerable expense, or causes to him the loss of

any advantage to which he was entitled.

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It shall be competent to a minor to exercise the rescissory

action on the ground of lesion even though the other party to the

agreement be also a minor.

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(1) The mere declaration made by a minor that he is of

age shall not operate to deprive him of the right to sue for

rescission.

(2) Nevertheless, it shall not be lawful for a minor to impeach

his obligation on the ground of his disability to contract, if he is

guilty of misrepresentation calculated to lead others to believe that

he is capable of contracting, and has, by such means, deceived the

other party.

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Where the agreement is one with regard to which a minor

is, under the provisions of the Commercial Code, considered to be

of age, or is entered into by the minor by reason of his trade, or

where the obligation arises out of tort or quasi-tort, in such cases

the minor cannot demand the rescission of the contract except in

those cases in which it is competent also to a person of age to

demand it, saving in the case of tort or quasi-tort, the provisions of

articles 1035 and 1036.

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Where the formalities prescribed with regard to any act of

a minor or person interdicted, or to any act which concerns a minor

or person interdicted, have been observed, or where the acts

performed by the tutor or curator do not exceed the limits of his

administration, the minor or person interdicted shall, with regard to

such acts, be considered as being of age or not interdicted, saving,

where competent, his right of relief against the tutor or curator.

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Disability to contract shall not be a good ground for the

rescission of the obligation of a person interdicted if the obligation

arises out of tort or quasi-tort.

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(1) Where minors or persons interdicted are entitled to

sue for the rescission of their obligations on the ground of their

disability, it shall not be competent to claim the reimbursement of

what was paid to them in pursuance of such obligations during the

time of minority or interdiction, except to the extent of the amount

accrued to their benefit.

(2) The provisions of this article shall also be applicable in the

case referred to in article 1216.

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(1) Save where the law in any particular case prescribes

a shorter period, the right to bring an action for the rescission of a

contract on the ground of violence, error, fraud, or the disability of

a person interdicted, or minor, shall be barred on the expiration of

two years.

(2) The same rule shall apply with regard to any obligation

which is without consideration, or is founded on a false

consideration.

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(1) The said period of limitation shall only begin to run,

in the case of violence, from the day on which the violence has

ceased, and, in the case of error, fraud or false consideration, from

the day on which the defect was discovered.

(2) In the case of an obligation without consideration the

period shall run from the day of the contract.

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In any other case not provided for in the last two preceding

articles, the right of action for the rescission of an obligation shall

be barred on the expiration of the period of five years from the day

on which such right may be exercised, irrespectively of the state or

condition of the person to whom such right is competent, saving

any other provision of this Code.

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The right of action for rescission shall pass to the heirs

Provided that they cannot exercise such right except within the

time which was still available to their predecessors, saving any

other provision of law relating to the interruption or suspension of

prescription.

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(1) The plea of nullity may at any time be set up by the

party sued for the performance of the contract in all cases in which

such party could have brought an action for rescission.

(2) Such plea is not subject to the prescription established in

articles 1222 and 1224.

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The affirmation or ratification of an obligation against

which an action or plea of rescission on the ground of nullity or on

any other ground was competent shall produce its effects between

the contracting parties without prejudice to the rights of third

parties.

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The affirmation or ratification shall not imply a waiver of

the action for rescission unless it is shown that the party affirming

or ratifying was aware of the defect giving rise to such action.

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Saving the provisions of the last preceding article, the

affirmation or ratification may take place tacitly by the voluntary

performance of the obligation against which an action of rescission

is competent according to law, or by any other act disclosing an

intention to give effect to the obligation.

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Saving any other special provision of the law, the

affirmation or ratification of any act which the law expressly

annuls for want of the requisite formalities, shall not validate such

act, unless the affirmation or ratification is made by means of an

instrument having all the formalities required for the validity of the

act so affirmed or ratified.

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The provisions of the last preceding article shall not apply

to cases of affirmation or ratification of a donation or testamentary

disposition made after the death of the donor or testator by his heirs

or by other persons claiming under him. In any such case the

affirmation or ratification, although made tacitly by the heirs or

such other persons, shall imply a waiver on their part of the action

or plea of rescission.

Sub-title VI

O F THE P ROOF OF O BLIGATIONS AND THEIR E XTINGUISHMENT

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(1) Where the law does not require that an obligation or

its extinguishment should result from a public deed or a private

writing, such obligation or its extinguishment may be evidenced by

means of witnesses or any other means allowed under the

provisions of the Code of Organization and Civil Procedure.

(2) A public deed is an instrument drawn up or received, with

the requisite formalities, by a notary or other public officer

lawfully authorized to attribute public faith thereto.

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(1) Saving the cases where the law expressly requires

that the instrument be a public deed, the transactions hereunder

mentioned shall on pain of nullity be expressed in a public deed or

a private writing

(a) any agreement implying a promise to transfer or

acquire, under whatsoever title, the ownership of

immovable property, or any other right over such

property;

(b) any promise of a loan for consumption or mutuum;

(c) any suretyship;

(d) any compromise;

(e) any lease for a period exceeding two years, in the case

of urban tenements, or four years, in the case of rural

tenements;

(f) any civil partnership; and

(g) for the purposes of the Promises of Marriage Law, any

promise, contract, or agreement therein referred to.

(2) Where, in the case of a private writing, the writing is not

signed by each of the parties thereto, it must be attested in the

manner prescribed in article 634 of the Code of Organization and

Civil Procedure.

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Any person having in his favour a presumption established

by law, shall be exempted from any proof as to the fact forming the

subject-matter of the presumption.

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(1) Evidence to rebut a presumption established by law

shall be inadmissible only when on the ground of such presumption

the law annuls certain acts, or disallows any action or plea, without

any reservation of the right of producing evidence to the contrary.

(2) In any other case, evidence to rebut the presumption, shall

be admissible even though the law does not make an express

reservation as to the production of evidence to the contrary.

Title V

O F M ARRIAGE C ONTRACTS

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Except with regard to the acquisitions referred to in Sub-

title III of this Title, no partnership or community of property

between the spouses is established by law.

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(1) It shall, however, be lawful for the future spouses to

enter into any other agreement, which is not contrary to morals, or

inconsistent with the rules contained in this and the following

articles of this Code.

(2) The spouses may, in an ante-nuptial or post-nuptial contract

agree that their property acquired during their marriage shall

remain separate or that it shall be governed by the system of

community of residue under separate administration under Sub-title

V of this Title, and without prejudice to sub-article (3) hereof, no

partnership or community of property in general, may be

established between the spouses except that referred to in this

article or in article 1236.

(3) The spouses may, without the intervention of any court,

whether alone or with others, and whatever system regulates their

property, form a limited liability company under the Commercial

Partnerships Ordinance * ; voting rights attached to shares registered

in the name of a spouse shall be exercised by the spouse in whose

name the shares are registered. The ownership of the shares in any

such company shall remain governed in accordance with the system

governing the property of the spouses.

*Repealed by Act XXV of 1995 (Cap. 386).

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(1) It shall not be lawful for the future spouses to enter

into any agreement whereby either of them is established as head of

the family, or into any agreement in derogation of any of the rights

deriving from parental authority, or of the provisions of law

relating to minority, or of any prohibitory rule of law.

(2) Nevertheless, any stipulation that all the children, or any of

them, shall be brought up in the religion of either of the spouses

shall be valid.

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It shall not be lawful for the future spouses to enter into

any agreement or to make any waiver tending to vary the legal

order of succession either with respect to themselves in regard to

the succession of their children or descendants, or with respect to

the children between themselves, saving such testamentary

dispositions and such donations as are allowed under the provisions

of this Code.

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(1) A promise made in a marriage contract by the parent

of one of the future spouses to such future spouse -

(a) not to leave to such future spouse out of his or her

estate a portion smaller than that which such future

spouse would take on an intestacy; or

(b) not to diminish such portion by any donation in favour

of his or her other children or of any other person; or

(c) not to give or leave, by donation or will, to any of his

or her other children more than that which he or she

would give or leave to such future spouse,

shall be valid.

(2) It shall also be lawful for either of the future spouses to

renounce the succession of any of his or her own parents or other

ascendants in return for what is given to him or her by such parent

or other ascendant by way of donation in contemplation of

marriage.

(3) Any such waiver, however, shall not be valid unless it is

expressly stated.

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Deleted by Act XXII.2025.7.

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The authority of the court shall, in all cases, be necessary

for the validity of a marriage agreement entered into by a person

who is under disability to contract.

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Any variation or counter-declaration made in respect of

the marriage contract by the future spouses before the celebration

of marriage shall not be effectual unless it is made with the consent

of all the parties to that contract.

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(1) After the celebration of the marriage, the spouses

m a y, w i t h t h e a u t h o r i t y o f t h e c o u r t , v a r y t h e i r m a r r i a g e

agreements, without prejudice to the rights of the children or of

third parties.

(2) Where no ante-nuptial agreement was made, the spouses

may also, with the authority of the court, enter into a marriage

contract.

(3) Any agreement prohibited by law in respect of a pre-nuptial

agreement is also prohibited in any post-nuptial agreement.

(4) After the celebration of the marriage the spouses may,

without the necessity of any authority of the court, substitute a

special hypothec for any general hypothec established in the

marriage contract.

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Any marriage contract, as well as any variation or counter-

declaration made in respect thereof, shall, on pain of nullity, be

expressed in a public deed.

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No marriage contract, variation or counter-declaration

shall be operative in regard to third parties, unless it is registered in

the Public Registry Office.

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In case of any variation or counter-declaration, the notary

shall, under the penalties established in the Notarial Profession and

Notarial Archives Act, draw up a note of reference as in the case of

a deed of cancellation or rescission.

Sub-title I *

O F THE I NSTITUTES OF D OWRY AND D OWER

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The institutes of dowry and dower are hereby abolished.

§ I. O F S ETTLEMENT OF D OWRY

Articles 1249 to 1258, both inclusive, were repealed by Act XXI

of 1993.

§ II. O F THE R IGHTS OF THE H USBAND OVER THE D OWRY

Articles 1259 to 1267, both inclusive, were repealed by Act XXI

of 1993.

*For the application of the provisions of this Sub-title see article 89 of Act XXI of

1993. § III. O F THE I NALIENABILITY OF THE D OWRY

Articles 1268 to 1299, both inclusive, were repealed by Act XXI

of 1993.

§ IV.O F R ESTITUTION OF D OWRY

Articles 1300 to 1312, both inclusive, were repealed by Act XXI

of 1993.

Sub-title II

O F D OWER ( Dotarium )

Articles 1313 to 1315, both inclusive, were repealed by Act XXI

of 1993.

Sub-title III *

O F THE C OMMUNITY OF A CQUESTS

1316. (1) Marriage celebrated in Malta shall, in the absence of

an agreement to the contrary by public deed, produce ipso jure

between the spouses the community of acquests.

(2) Marriage celebrated outside Malta by persons who

subsequently establish themselves in Malta, shall also produce

between such persons the community of acquests with regard to

any property acquired after their arrival.

1317. It shall be competent to the spouses, even after the

celebration of the marriage, with the authority of the court, to

establish the community of acquests which in virtue of the marriage

contract or other act had been excluded, or to cause the cessation of

the community of acquests established by contract or by operation

of law.

1318. It shall not be lawful for the spouses to derogate from the

provisions of this Code in so far as they relate to the community of

acquests.

1319. The right of each of the spouses to the community of

acquests shall, saving any other provision of the law, commence

from the day of the celebration of the marriage and terminate on the

dissolution thereof.

*For the application of the provisions of this Sub-title see article 89 of Act XXI of

1993.

1320. The community of acquests shall comprise -

(a) all that is acquired by each of the spouses by the

exercise of his or her work or industry;

(b) the fruits of the property of each of the spouses

including the fruits of property settled as dowry or

subject to entail, whether any one of the spouses

possessed the property since before the marriage, or

whether the property has come to either of them under

any succession, donation, or other title, provided such

property shall not have been given or bequeathed on

conditions that the fruits thereof shall not form part of

the acquests;

(c) saving any other provision of this Code to the contrary,

the fruits of such property of the children as is subject

to the legal usufruct of any one of their parents;

(d) any property acquired with moneys or other things

derived from the acquests, even though such property

is so acquired in the name of only one of the spouses;

(e) any property acquired with moneys or other things

which either of the spouses possesses since before the

marriage, or which, after the celebration of the

marriage, have come to him or her under any donation,

succession, or other title, even though such property

may have been so acquired in the name of such spouse,

saving the right of such spouse to deduct the sum

disbursed for the acquisition of such property;

(f)

fortuitous winnings made by either or both spouses,

and such part of a treasure trove found by either of the

spouses, as is by law assigned to the finder, whether

such spouse has found the treasure trove in his or her

own tenement, or in the tenement of the other spouse,

or of a third party

Provided that such part of the treasure trove as is

granted to the owner of the tenement shall belong

entirely to the party in whose tenement the treasure

trove is found.

1321. (1) All the property which the spouses or one of them

possess or possesses shall, in the absence of proof to the contrary,

be deemed to be part of the acquests.

(2) Any property, however, which may have come to either of

the spouses under any title anterior to the marriage shall not be

included in the acquests, notwithstanding that such spouse may

have been vested with the possession of the property only after the

marriage.

CIVIL CODE

1322. (1) The ordinary administration of the acquests and the

right to sue or to be sued in respect of such ordinary administration,

shall vest in either spouse.

(2) The right to exercise acts of extraordinary administration,

and the right to sue or be sued in respect of such acts or to enter

into any compromise in respect of any act whatsoever, shall vest in

the two spouses jointly.

(3)

Acts of extraordinary administration are the following

(a) acts whereby real rights over immovable property are

acquired, constituted or alienated;

(b) acts constituting

or

affecting

hypothecation

of

property;

(c) acts whereby immovable property is partitioned;

(d) acts granting rights of use and, or, enjoyment over

immovable property;

(e) donations other than those referred to in article

1753(2)(a);

(f)

borrowing or lending of money, other than the deposit

of money in an account with a bank;

(g) the acquisition of movable property or of any right of

use or enjoyment over movable or immovable property

the consideration for which is not paid on, or prior to,

delivery

Provided that this shall not apply to any debt incurred for

the needs of the family in terms of article 1327(c), or

to the hiring of movables or immovables when the

consideration therefor is moderate in relation to the

condition of the family and the duration of the lease is

for a short period;

(h) the contracting of any suretyship;

(i)

the giving of a pledge;

(j)

the entering with unlimited liability in a commercial

partnership, or the subscribing to or acquisition of any

shares in a limited liability company which are not

fully paid up;

(k) the transfer of a business concern as well as the

transfer of any share in a commercial partnership other

than a public company;

(l)

any act that may give rise to a special privilege in

terms of paragraph (b) of article 2010;

(m) any act of rescission of any act referred to in

paragraphs (a) and (c), and any act of declaration made

inter vivos whereby any real right over immovables is

acknowledged or renounced; and

(n) the settlement in trust of property forming part of the

community of acquests and the variation or revocation

of the terms of any trust in which any such property

has been settled.

(4) Any money deposited in a bank and any instrument, as

defined in the Second Schedule of the Investment Services Act, to

the credit of a married person may only be withdrawn by such

married person and it shall not be enquired whether such money or

instrument belongs to the community of acquests or not.

(5) The provisions of sub-article (4) shall continue to apply

even after the termination of the community of acquests for any

reason whatsoever and are without prejudice to the right of each of

the spouses to his or her full share of the community upon its

partition.

(6) Either spouse may, by means of a public deed or a private

writing duly attested in terms of article 634 of the Code of

Organization and Civil Procedure, appoint the other spouse or any

other person, as his or her mandatory with regard to acts of

extraordinary administration and compromise.

(7) The notary publishing a public deed as is referred to in sub-

article (6), and the advocate or notary public attesting a private

writing as referred to in the same sub-article, shall in each case

warn the spouse so appointing a mandatory of the importance and

consequence of such appointment and shall in the public deed or

the private writing, as the case may be, declare that he has so

warned the spouse.

1323. (1) If one of the spouses refuses his or her consent to an

act of extraordinary administration, the other spouse may apply to

the competent court for authorisation when the act of extraordinary

administration is necessary in the interests of the family

Provided that the parties may, in such cases, choose to adopt the

procedures contemplated in article 6A to arrive at an agreement or

to have an arbitration between them.

(2) If one of the spouses is away from Malta or if there exists

any other impediment in respect of one of the spouses and in either

case there exists no authorisation by public deed or by private

instrument duly attested in terms of article 634 of the Code of

Organization and Civil Procedure, the other spouse may perform

such necessary acts of extraordinary administration of the acquests

which in terms of law require the consent of both spouses, and

wh i c h t he c o u r t o f v o l un t a r y j ur is d i c t i o n m a y s pe c if ic a ll y

authorise; sohowever that the court may not in such cases authorise

the performance of all necessary acts of extraordinary

administration generally.

(3) The registration required by article 996 or 2033 as the case

may be, in respect of any act alienating the ownership or any real

right over immovable property, and any hypothecation whether

general or special shall contain also the name of the other spouse as

if such other spouse were a party to the deed of alienation or

hypothecation, and where such registration is made in the name of

one spouse only it shall in respect of third parties be operative only

in relation to the spouse in whose name it is registered.

1324. Normal acts of management of a trade, business or

profession being exercised by one of the spouses, shall vest only in

the spouse actually exercising such trade, business or profession

even where those acts, had they not been made in relation to that

trade, business or profession, would have constituted extraordinary

administration.

1325. (1) The competent court may at the request of a spouse

order the exclusion of the other spouse either generally or limitedly

for particular purposes or acts, from the administration of the

community of acquests, where the latter spouse -

(a) is not competent to administer; or

(b) has mismanaged the community;

and in any such case the administration of the community of

acquests shall to the extent to which such spouse has been

excluded, vest exclusively in the spouse not so excluded.

(2) The spouse who has been so excluded from administering

the acquests may, if the grounds upon which he or she has been

excluded no longer subsist, request the court to reinstate such

spouse in the administration.

(3) Any order made in terms of this article shall be notified

within twenty-four hours by the registrar to the Director of the

Public Registry who shall keep the same in a special register and

keep a special inde x thereof. Such o rders shall contain a ll

particulars of both spouses as are required for notes of enrolment

under the Public Registry Act and shall become operative with

regard to third parties upon such registration.

(4) Without prejudice to any order made in terms of sub-article

(1) of this article, in the case of the interdiction or incapacitation of

one of the spouses and until such interdiction or incapacitation

ceases, such spouse shall be excluded from the administration of

the acquests and in any such case the administration of the acquests

shall vest solely in the spouse not so excluded.

1326. (1) Acts which require the consent of both spouses but

which are performed by one spouse without the consent of the other

spouse may be annulled at the request of the latter spouse where

such acts relate to the alienation or constitution of a real or

personal right over immovable property; and where such acts relate

to movable property they may only be annulled where the rights

over them have been conferred by gratuitous title.

(2) An action for annulment may only be instituted by the

spouse whose consent was required and within the peremptory term

of three years from -

(a) the date when such spouse became aware of the act, or

(b) the date of registration, where such act is registerable,

or

(c) the date of termination of the community of acquests,

whichever is the earliest.

(3) Notwithstanding the provisions of sub-article (2), the right

given by sub-article (1) to a spouse to request the annulment of an

act shall lapse at the expiration of three months from the day on

which notice of the act shall have been given to such spouse by

means of a judicial act, unless within such time of three months

such spouse shall have instituted an action for such annulment.

(4) The spouse who has not instituted the action for annulment

within the stipulated time and who has not expressly or tacitly

ratified the act, shall nevertheless have an action to compel the

other spouse to reintegrate the community of acquests or, where

this is not possible, to make good the loss suffered.

(5) Saving the preceding provisions of this article, where in

any act which requires the consent of the other spouse and which

relates to movables, a spouse has acted unilaterally, there shall be

no right competent to the other spouse to demand the annulment of

the act; where however, the other spouse has not ratified such act,

whether expressly or tacitly, such spouse shall have an action to

compel the spouse who has acted unilaterally to reintegrate the

community of acquests, or where this is not possible, to make good

the loss suffered.

(6) The provisions of this article shall be without prejudice to

any right competent to a spouse under this Code or any other law.

1327. Saving the provisions of article 1329, the assets forming

part of the community of acquests shall be charged only with the

following debts

(a) the burdens and obligations which encumber the assets

under the act of their acquisition;

(b) the expenses and obligations incurred in the

administration of the acquests, except such expenses

as are incurred by acts which require the consent of

both spouses but which are performed by one spouse

only without the consent of the other spouse;

(c) the expenses and obligations, even if incurred

separately, for the needs of the family including those

for the education and upbringing of the children;

(d) every obligation which is contracted by the spouses

jointly;

(e) debts relating to the ordinary repairs of the property of

either of the spouses, the fruits of which are included

in the acquests; and

(f)

any debt or indemnity due as a civil remedy by either

spouse where such indemnity is not due as a civil

remedy in respect of any offence wilfully committed.

1328. Creditors of a particular spouse shall, unless they enjoy a

lawful cause of preference, rank after the creditors of the

community of acquests.

1329. (1) Subject to the following provisions of this article,

the creditors of a spouse for debts which are not chargeable to the

community of acquests whether such debt has arisen before or after

the marriage, may, when such creditors cannot satisfy their claim

against the paraphernal property of such spouse, enforce their claim

in subsidium against the assets forming part of the community of

acquests but only to the extent of the value of the share which such

spouse has in the community of acquests.

(2) Saving the right of the debtor’s spouse to seek the judicial

separation of property, the debtor’s spouse shall not have a right to

oppose an act enforcing the credit against any property of the

debtor or of the community of acquests except where the property

upon which execution is being attempted is the paraphernal

property of such debtor’s spouse.

1330. When the assets of the community of acquests are

insufficient to satisfy the debts which burthen it, the creditors of

such community may enforce their claim in subsidium against the

paraphernal property of the spouses

Provided that where -

(a) the debt is due as a civil remedy in respect of a wilful

offence committed by either spouse; or

(b) the debt is one arising out of the exercise of a trade,

business or profession as is referred to in article 1324;

the creditors may not enforce their claim against the paraphernal

property of the spouse who has not given rise to the claim, but may

in such cases enforce their claim to the extent of any part remaining

unsatisfied by the assets of the community of acquests, against the

paraphernal property of the spouse giving right to such claim.

1331. (1) Each of the spouses is bound to reimburse the

community of acquests with any sum of money or the value of any

thing which he or she may have appropriated from the acquests to

satisfy debts which do not fall under the provisions of article 1327,

unless he can show that the act was one which was advantageous to

the community or was performed to satisfy the needs of the family.

(2) Each one of the spouses has a right to be reimbursed with

any sum of money or the value of any thing which has been taken

from his or her paraphernal property where such money or thing

was spent or consumed in connection with a debt or an investment

of the community of acquests.

(3) The spouse who is a creditor of the community of acquests

may demand to be assigned property of the community up to the

value of his or her credit. The reimbursement from the property of

the community of acquests shall be made first by assigning money,

then other movables and finally immovables.

(4) These reimbursements are to be made at the termination of

the community of acquests

Provided that the court may allow that any such reimbursements

take place at an earlier date when the interests of the family so

require or permit.

1332. (1) The

judicial

separation

of

property

may

be

pronounced -

(a) upon the interdiction or incapacitation of one of the

spouses; or

(b) where the disordered state of affairs of one spouse or

his or her conduct in relation to the administration of

the acquests jeopardises the interest of the community

of acquests, or of the family or of the spouse

requesting the judicial separation of property; or

(c) where one of the spouses fails substantially in his or

her duty to contribute to the needs of the family in

accordance with article 3 of this Code; or

(d) where one of the spouses has been excluded from the

administration in terms of article 1325, either

generally or to a great extent; or

(e) upon the legal separation of the spouses.

(2) The judicial separation of property may only be demanded

by either spouse or by his or her lawful representatives; sohowever

that such separation may not be demanded by the spouse or the

representatives of the spouse who has given rise to the causes for

judicial separation referred to in paragraphs (b) or (c) of sub-article

(1) of this article.

(3) Where the judicial separation has been demanded by the

spouse excluded from the administration of the community of

acquests in terms of paragraph (d) of sub-article (1) of this article,

the court shall, where the judicial separation causes financial

damage to the other spouse, order the spouse demanding judicial

separation to pay compensation to the other party for the loss that

such party may have suffered because of the separation.

(4) In the judgment pronouncing the judicial separation of

property, the court shall direct that the community of acquests

between the spouses shall cease as from the day on which the

judgment becomes res judicata

Provided that the court may however, without prejudice to any

right legally acquired by any third party, direct that the judgment

shall operate retrospectively to the date of the filing of the judicial

act introducing the cause upon which judgment is given.

(5) The creditors of either spouse or of the community of

acquests may impeach the separation pronounced by the court, even

though it may have been given effect to, if such separation has been

obtained in fraud of their rights.

(6) The court may where in its opinion circumstances so

warrant direct that the property comprised in the community of

acquests be not partitioned before the lapse of such period after the

cessation of the community of acquests as it may determine.

(7) Any direction given by the court in virtue of sub-article (6)

of this article, may, on good cause being shown, be changed or

revoked by the court.

(8) The demand for the judicial separation of property shall not

stay any action enforcing any debt of the community of acquests.

(9) Where a demand for the judicial separation of property has

been filed, a creditor of a particular spouse may proceed or

continue proceedings enforcing his claim against property of the

community of acquests and in any such case the spouse of the

debtor may demand that half the proceeds of the sale of any object

belonging to the community of acquests shall remain deposited in

court on account of the share in the community of acquests of the

spouse of the debtor; sohowever that if such deposits exceed the

share of such spouse in the community of acquests any sum so

deposited in excess shall remain to the credit of the debtor spouse

and be attachable by his creditors.

(10) Any judgment ordering the judicial separation of property

shall not be operative against third parties except from the day on

which such judgment shall have been registered in the Public

Registry.

1333. The partition of the community of acquests shall be made

by assigning one-half of the assets and liabilities comprised in the

community to each of the spouses.

Sub-title IV *

O F P ARAPHERNAL P ROPERTY

1334. (1) Where the community of acquests or the community

of residue under separate administration operates between the

spouses, all property which is not included in paragraphs (a) to (f)

of article 1320 or is not dotal is paraphernal. Where the property of

the spouses is held under the system of separate property all

property which is not dotal is paraphernal.

(2) The management of paraphernal property shall appertain

exclusively to the spouse to whom such property belongs.

(3) For the support of the family, the spouses shall first use

income deriving from common property before income belonging

to one of them exclusively, and they shall first use capital which is

their common property or belongs to the community of acquests

before the capital belonging exclusively to one of the spouses.

1335. Where one of the spouses appoints the other spouse as his

or her agent to manage his or her paraphernal property, the latter

spouse shall be liable to the first spouse in the same manner as any

other agent, sohowever that such spouse shall only be obliged to

render an account for the fruits if this is expressly stated in the

mandate.

* For the application of the provisions of this Sub-title see article 89 of Act XXI of

1993.

1336. (1) Where a spouse has enjoyed the paraphernal

property of the other spouse, without authority, but without

opposition, that spouse or the heirs of that spouse, upon the

dissolution of the marriage or upon the first demand of the spouse

to whom the property belongs, shall only be bound to deliver the

existing fruits, and shall not be accountable for fruits which shall

have been consumed up to that time.

(2) The same rule shall apply where such spouse has enjoyed

such property with authority but without the express condition of

accounting for the fruits.

1337. Where a spouse has enjoyed the property of the other

spouse in spite of opposition, he shall be answerable for all fruit

existing and consumed.

Sub-title V *

O F C OMMUNITY OF R ESIDUE U NDER S EPARATE

A DMINISTRATION

1338. (1) Where the future spouses in a marriage contract

stipulate that the property acquired by them during marriage shall

be governed by the system of community of residue under separate

administration the following provisions of this Sub-title shall

apply.

(2) The assets which shall be governed by the system of

community of residue under separate administration shall be all the

assets falling under paragraphs (a) to (f) of article 1320.

1339. (1) Under the system of community of residue under

separate administration the acquisitions made by each of the

spouses during the marriage shall be held and administered by the

spouse by whom such acquisitions are made, and subject to any

limitations contained in this Sub-title shall, in relation to third

parties, be dealt with by such spouse as if such spouse were the

exclusive owner thereof.

(2) Where under the system of community of residue under

separate administration property is acquired by the spouses jointly,

it shall be administered jointly. The share of each spouse in such

property may only be alienated inter vivos, with the consent of the

other spouse, or where such consent is unreasonably withheld, with

the authority of the court of voluntary jurisdiction, or in a judicial

sale by auction at the instance of any creditor of such spouse.

1340. (1) The community of residue under separate

administration shall, unless terminated earlier by mutual consent by

public deed with the authority of the court, terminate upon the

dissolution of the marriage; under the same circumstances, mutatis

mutandis, as apply for the community of acquests under paragraphs

*For the application of the provisions of this Sub-title see article 89 of Act XXI of

1993. (b) and (c) of sub-article (1) of article 1332; and upon the legal

separation of the spouses.

(2) Sub-articles (2), (4), (5), (9) and (10) of article 1332 shall

apply mutatis mutandis where the dissolution of community of

residue under separate administration is declared by judgment of

the court.

1341. (1) At the termination of the community of residue

under separate administration, howsoever happening, the residue to

be accounted for by each spouse shall include any expense made by

that spouse solely in his or her interest out of assets governed by

the community and held by that spouse, and shall be subject to the

deduction of any amount paid out with paraphernal property of that

spouse for debts of that spouse relating to assets held by that spouse

and governed by the system of community of residue with separate

administration, as well as liabilities still outstanding by that spouse

incurred in respect of such assets.

(2) From the residue as determined in sub-article (1) there shall

be deducted any paraphernal debts of the spouse which are in

excess of that spouse’s paraphernal assets.

(3) The result as determined in sub-article (2) shall if it is not a

debit constitute the final residue of that spouse. If the result is in

debit there shall be considered to be no final residue for that

spouse.

(4) Where the final residue of one spouse is greater than the

final residue of the other spouse or where only one spouse has a

final residue, there shall be assigned to the spouse with the lesser

final residue or with no final residue, as the case may be, as much

of the final residue of the spouse with the greater final residue or

with the only final residue as is necessary so that each spouse may

have an equal share of assets forming the final residue of both

spouses.

1342. (1) For the purpose of article 1341(2) any debt which is

not one mentioned hereunder is a paraphernal debt

(a) the burthens and obligations which encumber the

assets under the act of their acquisition;

(b) the expenses and obligations

incurred

in

the

administration of the acquests;

(c) the expenses and obligations even if incurred

separately for the needs of the family including those

for the education and upbringing of the children;

(d) debts relating to the ordinary repairs of paraphernal

property of the spouse the fruits of which are included

in the assets governed by the community of residue

under separate administration;

(e) any debt or indemnity due as a civil remedy by a

spouse where such indemnity is not due as a civil

remedy in respect of any offence wilfully committed.

1343. (1) Third parties may only exercise their rights against

the spouse who has contracted with, or incurred the debt towards,

them.

(2) At the termination of the community of the residue under

separate administration and after the assignment of any final

residue, the creditors of one spouse may however in relation to any

debt due to them arising before the termination of the community

of residue under separate administration, claim in subsidium

against the other spouse up to the amount if any of the assets of the

final residue of the debtor spouse assigned to the other.

1344. (1) Where the system of community of residue under

separate administration operates between the spouses, a spouse

may not transfer inter vivos any of his assets under gratuitous title

except with the consent of the other spouse.

(2) Sub-article (1) of this article shall not apply to donations of

moderate value regard being had to the condition of the parties and

all other circumstances.

(3) An action for annulment of an act of alienation under

gratuitous title may only be instituted by the spouse whose consent

was required and within the peremptory term of three years from -

(a) the date when such spouse became aware of the act, or

(b) the date of registration, when such act is registerable,

or

(c) the date of termination of the community of residue

under separate administration,

whichever is the earliest.

1345. (1) Where a spouse performs an act with the intention to

defraud the other spouse of the potential rights competent on the

termination of the community of residue under separate

administration such other spouse may exercise the action

contemplated in article 1144 as if he or she were a creditor.

Such right shall be personal to the latter spouse or his or her heirs

and is not exercisable by the creditors of the spouse.

(2) An action under this article shall be prescribed by the lapse

of five years from -

(a) the date when such spouse became aware of the act, or

(b) the date of registration, where such act is registerable,

or

(c) the date of termination of the community of residue

under separate administration,

whichever is the earliest.

Title VI

O F S ALE

Sub-title 1

O F THE C ONTRACT OF S ALE

1346. A sale is a contract whereby one of the contracting parties

binds himself to transfer to the other a thing for a price which the

latter binds himself to pay to the former.

1347. A sale is complete between the parties, and, as regards the

seller, the property of the thing is transferred to the buyer, as soon

as the thing and the price have been agreed upon, although the

thing has not yet been delivered nor the price paid; and from that

moment the thing itself remains at the risk and for the benefit of the

buyer.

1348. (1) Nevertheless, where movables are not sold in bulk

but by weight, number or measure, the sale is not complete in that

the property does not pass to the buyer and the things sold remain

at the seller’s risk, until they are weighed, counted or measured.

(2) The buyer, however, may demand that the things be

weighed, counted or measured and delivered to him, or, in case of

non-performance of the obligation, payment of damages.

(3) The seller may also compel the buyer to perform his

obligation or, in default, to pay damages.

(4) The provisions of this article shall also apply where the

thing sold is an immovable and cannot exactly be determined

before it is measured.

1349. Where, on the contrary, the things are sold in bulk, the sale

is complete even though the things are not yet weighed, counted or

measured.

1350. (1) A sale is said to be made in bulk, when the things are

sold for one and the same price, irrespectively of the weight,

number or measure of such things.

(2) A sale is said to be made by weight, number or measure,

when the price is agreed upon according to the weight, number or

measure, whether the sale is in respect of the whole quantity of the

things existing in a specified place or in respect only of a part

thereof.

(3) A sale is also said to be made by weight, number or

measure if the sale is in respect of a specified number of things or

of so many kilogrammes or measures of a specified thing, even

though one single price has been fixed in respect of such number of

things or such quantities of a specified thing.

1351. (1) In regard to things which, according to usage or by

virtue of an express agreement, are to be tasted or tried before the

purchase, the buyer shall not be bound until he has approved of

them.

(2)

This, however, shall not apply where the thing, which,

according to usage only and not by virtue of an express agreement,

is to be tasted or tried before the purchase, has not to satisfy the

taste or the individual opinion of the purchaser, but the taste or trial

is only necessary in order to ascertain whether the thing is of good

and merchantable quality; and in any such case, if the thing is a

specific thing and the price has been agreed upon, both parties are

bound, but the contract shall be deemed to have been made under a

suspensive condition, and the buyer shall be bound to accept the

thing and pay the price thereof if it is proved that the thing is of a

good and merchantable quality, although he does not approve of the

thing.

1351A. (1) Notwithstanding any of the provisions of this sub-

title, any agreement relating to the sale or purchase of ships or

aircraft, including aircraft engines, shall be governed by

(a) the terms and conditions agreed between the parties as

well as by the international usages of trade applicable

in the context, and in case of conflict with the

provisions of this Code, such terms and conditions

shall prevail; and

(b) the special laws relating to merchant shipping and civil

aviation, as the case may be.

(2)

For the purposes of this article and sub-article (3) of

article 1357, the term "ship" shall have the same meaning as

ascribed to it in the Merchant Shipping Act and the term "aircraft"

shall have the same meaning as ascribed to it in the Aircraft

Registration Act.

1351A. (1) Notwithstanding any of the provisions of this sub-

title, any agreement relating to the sale or purchase of ships or

aircraft, including aircraft engines, shall be governed by

(a) the terms and conditions agreed between the parties as

well as by the international usages of trade applicable

in the context, and in case of conflict with the

provisions of this Code, such terms and conditions

shall prevail; and

(b) the special laws relating to merchant shipping and civil

aviation, as the case may be.

(2)

For the purposes of this article and sub-article (3) of

article 1357, the term "ship" shall have the same meaning as

ascribed to it in the Merchant Shipping Act and the term "aircraft"

shall have the same meaning as ascribed to it in the Aircraft

Registration Act.".

1352. (1) The price must be in money.

(2) Nevertheless, the contract shall not cease to be a contract of

sale if, in addition to the sum of money agreed upon, the buyer

binds himself to give some thing in kind by way of a supplement to

the price.

1353. (1) The price must be fixed and stated by the parties.

(2) It may, however, be left to the decision of one or more

persons specified by the parties; and in such case if such person or

any of such persons is unwilling or unable to fix such price, the sale

is void.

1354. The price may also be left to the decision of one or more

experts not specified by the parties; and, in such case, if the parties

fail to agree as to the expert or experts to be appointed, the

appointment shall be made by the court.

1355. In all cases where the price is left to the decision of two or

more persons, the price shall, if the persons are more than two, be

determined by the opinion of the majority; but if the persons are

only two and do not agree, or if they are more than two and fail to

agree between them in such a way that no majority of votes can be

obtained, an average shall be taken of the sums fixed by each of

them.

1356. A sale can be made at the price current at a given time; and

such price shall be deemed to be the average current price at the

place and time where and when the contract is to be performed.

1357. (1) A promise to sell a thing for a fixed price, or for a

articles, shall not be equivalent to a sale; but, if accepted, it shall

create an obligation on the part of the promisor to carry out the

sale, or, if the sale can no longer be carried out, to make good the

damages to the promisee.

(2) The effect of such promise shall cease on the lapse of the

time agreed between the parties for the purpose or, failing any such

agreement, on the lapse of three months from the day on which the

sale could be carried out, unless the promisee calls upon the

promisor, by means of a judicial intimation filed before the

expiration of the period applicable as aforesaid, to carry out the

same, and unless, in the event that the promisor fails to do so, the

demand by sworn application for the carrying out of the promise is

filed within thirty days from the expiration of the period aforesaid.

(3) A promise of sale or purchase, by whatever name called, of

ships and aircraft, including an aircraft engine, shall be regulated

by the provisions of any agreement between the vendor and the

purchaser in accordance with its terms as well as by the

international usages of trade applicable in the context. Sub-article

(2) shall not apply in such cases and

(a) the effect of such promise shall cease on the lapse of

time or on the events agreed between the parties for

the purpose; and

(b) any notices which may be required to be given by the

parties may be given by notice in writing in any

manner, including by electronic means.

1358. The provisions of the last preceding article shall also

apply to a promise to sell at a fair price.

1359. Where in any promise to sell, earnest has been given, each

of the parties shall be at liberty to recede from the contract: the

party giving the earnest forfeiting such earnest, and the party

receiving the earnest returning double the amount thereof, saving

any other usage in regard to the particular contract in respect of

which earnest has been given.

1360. The provisions relating to a promise to sell, shall apply to

a promise to buy.

1361. (1) All expenses of or incidental to the contract of sale,

including the expense necessary for freeing any immovable from

the fetters of any entail or from any hypothec, easement or other

burden to which the immovable may be subject, in accordance with

the provisions contained in Title II of Part II of Book Second of the

Code of Organization and Civil Procedure, shall be at the charge of

the buyer.

(2) Brokerage as well as any fee due to the experts or other

persons mentioned in article 1353 shall be borne by the seller and

buyer one-half each.

1362. In the absence of an agreement, brokerage shall be

regulated at the rate of one per centum in the case of sale of

movables, and two per centum in the case of sale of immovables.

1363. (1) The sale of immovable property shall be null if not

made by a public deed.

(2) It shall also be null if the purchase is made pro persona

nominanda.

1364. Any provisions of a contract of sale which are doubtful or

ambiguous shall be interpreted against the seller or the buyer

according to the rules of interpretation relating to contracts in

general.

Sub-title II

O F THE P ERSONS WHO MAY B UY OR S ELL

1365. All persons may buy or sell, except those who are by law

prohibited from so doing.

1366. A contract of sale between spouses is null, except in the

following cases

(a) when the spouse assigns property to the other spouse in

payment of a sum owed to that spouse in respect of a

dowry;

(b) when the object of the sale or assignment which one of

the spouses makes to the other is the payment of a debt

due to the buyer or assignee, or the investment of

money belonging to such buyer or assignee

Provided that where in the cases aforesaid any indirect

advantage results to either of the spouses, it shall be lawful for the

heirs of the other spouse, or for any other person interested, to

demand that the contract be rescinded pro tanto.

1367. The provisions of the last preceding article in so far as

they prohibit either of the spouses from buying property from the

other, shall not apply to cases where property is sold by auction on

the demand of the creditors of the spouse to whom such property

belongs.

1368. The sale, however, made, either directly or through

intermediaries, to tutors or curators in regard to property belonging

to the persons under their tutorship or curatorship, or to agents in

regard to property which they are authorized to sell is null, even

though such sale was made by judicial auction.

1369. Any sale or assignment of lawsuits or of litigious rights or

actions made, either directly or through intermediaries, to any

judge or magistrate is also null.

Sub-title III

O F THE T HINGS WHICH MAY BE S OLD

1370. All things which are not extra commercium may be sold,

unless the alienation thereof is prohibited by any special law.

1371. (1) The sale of future things is conditional; and if the

thing sold shall not exist at all, the sale shall have no effect.

(2) Where, however, the subject-matter of the sale is an

expectancy of a future thing, the sale is absolute and unconditional,

and the buyer is bound to pay the price even though the thing shall

not exist at all.

(3)

In case of doubt, the sale is presumed to be conditional.

1372. Saving the provisions of article 559 and the provisions

relating to Il-Monti in regard to pledges, the sale of a thing

belonging to another person is void

Provided that such sale may give rise to an action for damages if

the buyer was not aware that the thing belonged to another person

Provided also that the nullity of such sale may in no case be set

up by the seller.

1373. The sale or assignment of any right to the succession of a

living person is also void, although such person shall have given

his consent thereto.

1374. The sale or assignment of rights concerning any sum of

money or bequest granted or made expressly for maintenance or

any pension granted by the Government is also null, saving, in

regard to any garnishee order affecting such sum, bequest or

pension, other provisions of the Code of Organization and Civil

Procedure.

1375. (1) If at the time the contract of sale is made, the thing

has totally perished, the contract is void.

(2) If the thing has perished only in part, the buyer may elect

either to repudiate the contract or to demand the remaining part at a

1376. (1) If the seller knew that the thing had perished, but

this was not known to the buyer, the latter may maintain an action

for damages.

(2) If, on the contrary, the seller did not know that the thing had

perished but this was known to the buyer, the latter shall not be

bound to pay the price but shall be liable for damages. If the price

has been paid, the buyer shall not be entitled to claim the refund

thereof.

1377. The provisions of the last preceding article shall also

apply where the sale is void on the ground that the thing was extra

commercium or was already the property of the buyer.

Sub-title IV

O F THE O BLIGATIONS OF THE S ELLER

1378. The seller has two principal obligations, namely, to

deliver, and to warrant the thing sold.

§ I. O F D ELIVERY

1379. The delivery of immovable property takes place ipso jure

on the publication of the contract of sale, saving, as regards the

delivery of possession of property sold by judicial auction, the

provisions of the Code of Organization and Civil Procedure.

1380. The delivery of movable property takes place either by

handing the property to the buyer, or by handing to him the key of

the place in which the property is lying, or by handing to him the

documents of title the delivery of which operates, according to law,

the transfer of the property to which such documents refer, or by

causing the buyer to be acknowledged by the persons in whose

possession the property exists.

1381. The delivery of movable property takes place also by the

mere consent of the parties -

(a) when the thing sold is already in the possession of the

buyer; or

(b) when the seller who has reserved to himself the

enjoyment of the thing sold acknowledges that he

holds the thing on behalf of the buyer; or

(c) when the transfer of the thing sold cannot be effected

at the time of the sale

Provided that in the cases mentioned in paragraphs (b) and (c),

such delivery shall not operate to the prejudice of third parties.

1382. The delivery of incorporeal things takes place either by the

use which the buyer makes of such things with the consent of the

seller, or by handing over the documents of title in the case of any

right the title to which is transferable by endorsement or delivery.

1383. (1) The expenses of delivery are at the charge of the

seller.

(2) Such expenses shall include those of weighing, counting or

measuring the thing, where the sale is made by weight, number or

measure.

(3) The expenses of weighing, counting or measuring are at the

charge of the buyer where the sale is made in bulk and the

weighing, counting or measuring is required by the buyer in order

to ascertain whether the thing sold is according to the quantity

stated or promised to him.

(4)

The expenses of carriage are at the charge of the buyer.

1384. Delivery must be made at the place where the thing was at

the time of the sale.

1385. If the seller fails to make delivery at the time agreed upon,

the buyer may elect either to demand the dissolution of the contract

or to demand that he be placed in possession of the thing sold,

provided the delay has been caused solely by the seller.

1386. In all cases, the seller is liable for damages if the buyer has

sustained any loss from the non-delivery of the thing at the time

agreed upon.

1387. Where a person has bound himself to deliver goods to

arrive on a ship which he has reserved to name within a specified

time and such person fails to name the ship within the said time,

such person shall, besides being answerable for damages, be liable

to deliver, within a time to be fixed by the court, according to

circumstances, other goods of the same quality and quantity as

those forming the subject of the contract.

1388. The same rule shall apply where a person has bound

himself to deliver goods to arrive on a ship named in the contract

and fails to make delivery within the time agreed upon, unless he

proves that he used due diligence for the goods to arrive within the

time agreed upon and that the default of arrival of such goods

within such time was due to a vis major.

1389. Where the seller has bound himself to deliver, within a

specified time, things which have to be weighed, counted or

measured, he shall not be deemed to perform the obligation if he

refuses to deliver the things to the buyer who presents himself to

take delivery thereof in sufficient time for the things to be weighed,

counted or measured before the expiration of the time so specified

Provided that where the seller is ready to make delivery of the

th i n gs i n s uff i c i e n t ti m e s o t ha t t h e w e i g hi n g, c ou n t in g o r

measuring thereof may be conveniently commenced before the

expiration of the specified time, it shall not be lawful for the buyer,

even though he shall have previously in vain presented himself to

take delivery of the things, to demand the dissolution of the sale,

saving his right to maintain an action for damages as provided in

articles 1385 and 1386.

1390. If the thing which the seller offers to deliver is not of the

quality promised, or is not according to the sample on which the

sale was made, the buyer may elect either to reject the thing and

demand damages, or to accept the thing with a diminution of the

1391. The seller is not bound to deliver the thing, if the buyer

does not pay the price thereof, unless the seller has allowed the

buyer time for payment.

1392. (1) Nor shall the seller be bound to make delivery of the

thing, even though he has allowed the buyer time for the payment

of the price, if, since the sale, the buyer has by his own act

diminished the security which by the contract he had given to the

seller.

(2) Nor shall he be bound to make delivery if, since the sale,

the buyer has become a bankrupt, or insolvent, or his condition has

been so altered that the seller is in danger of losing the price.

(3) The same rule shall apply where, although the buyer was in

a state of bankruptcy or insolvency at the time of the sale, such

state did not reveal itself except after the sale and it was not known

to the seller at the time of the sale.

(4) In the aforesaid cases, however, the seller is bound to

deliver the thing if the buyer gives him security for the payment of

the price at the time agreed upon.

1393. The thing must be delivered in the same state in which it

was at the time of the sale.

1394. (1) From the day of the sale, all fruits shall belong to the

buyer.

(2) In the case of a sale made under a suspensive condition, all

fruits which fall due or are collected before the fulfilment of the

condition shall belong to the seller.

1395. The fruits which are uncut or unplucked at the time of the

sale, or, where the sale is made under a suspensive condition, at the

time of the fulfilment of the condition, shall belong to the buyer

although they had been sown by the seller.

1396. (1) The rent of rural tenements which had not fallen due

at the time of the sale or at the time of the fulfilment of the

condition shall also belong to the buyer.

(2) In the case, however, of urban tenements or of movables,

the rent or the portion of the rent in respect of the period during

which the sale was made or the condition was fulfilled, shall be

divided between the seller and the buyer in proportion to the time

elapsed before the sale was made or the condition was fulfilled and

the time that elapsed afterwards.

1397. In the case of sale of a ship while on her voyage, the

freight of that voyage shall belong to the buyer.

1398. The obligation of delivering the thing shall include that of

delivering its accessories and everything that is intended for its

perpetual use.

1399. The seller is bound to deliver the full quantity of the thing

as stipulated in the contract, subject to the modifications contained

in the following articles.

1400. (1) Where the sale of immovable property has been

made with an indication of the quantity at so much per measure, the

seller shall be bound to deliver to the buyer the quantity stated in

the contract if the latter requires it.

(2) If this cannot be done, or if the buyer does not require it,

the seller is obliged to accept a proportionate reduction of the price.

1401. If, on the contrary, in the case mentioned in the last

preceding article, the quantity is found to be greater than that stated

in the contract, the buyer shall be bound to pay a supplement

Provided that where the overplus exceeds the twentieth part of

the quantity stated in the contract, the buyer shall be at liberty to

repudiate the sale.

1402. In all other cases, whether the sale is in respect of a

specified and limited corpus, or whether it is in respect of distinct

and separate tenements, or whether, in the sale, the measure is first

stated, or the corpus is first mentioned followed by an indication of

the measure, the indication of the measure will not entitle the seller

to any increase of price in respect of any excess in such measure,

n o r t h e b u y e r t o a n y d i m i n u t i o n of p r i c e i n r e s p e c t o f an y

deficiency in such measure, unless the difference between the

actual measure and that stated in the contract is more than one-

twentieth whether in excess of or below the value of all the things

sold

Provided that no claim may be enforced for an increase or a

diminution of the price, notwithstanding that the difference is more

than one-twentieth, whether in excess of or below the aforesaid

value, if the thing was sold by judicial auction or if it was expressly

stipulated that there should be no warranty as to quantity or if the

thing was sold tale quale, saving, where the sale was not made by

judicial auction, any remedy allowed in law in case of lesion.

1403. Where in accordance with the provisions of the last

preceding article an increase of the price is to be paid on account of

an excess in the measure, the buyer may elect either to repudiate

the contract or, if he retains the tenement, to pay the overplus,

together with interest.

1404. In all cases in which the buyer is entitled to repudiate the

contract, the seller is bound to return to him, in addition to the price

if received by him, the expenses of the contract and any other

lawful expense incurred in connection with the sale.

1405. Where two tenements have been sold by one and the same

contract, and for one and the same price, the measure of each

tenement being specified in the contract, and it is found that one of

the tenements is smaller and the other larger than the measure

specified, set-off takes place to the extent of the difference; and an

action for an increase or diminution of price is only maintainable in

accordance with the rules set forth in the foregoing articles.

1406. In all cases where an increase or a diminution of price is

due, the price shall be increased or diminished only to the extent by

which the excess or deficiency of the quantity is greater than that

allowed by law.

1407. (1) The action of the seller for an increase of the price,

and the action of the buyer for a diminution of the price or for

repudiation of the contract shall be barred by the lapse of two years

from the day of the contract.

(2) The said period of limitation shall run against absentees,

persons interdicted, married women and minors, if they claim under

a seller or a buyer against whom the running of the said period of

limitation is not suspended.

§ II. O F W ARRANTY

1408. The warranty which the seller owes to the buyer is in

respect of the quiet possession of the thing sold and of any latent

defect therein.

O F W ARRANTY OF THE Q UIET P OSSESSION OF THE T HING SOLD

1409. Although no stipulation of warranty has been made in the

contract of sale, the seller is in law bound to warrant the buyer

against any eviction which deprives him, in whole or in part, of the

thing sold, and against any easement or burden on the same,

claimed by others, and not stated in the contract.

1410. It shall be lawful for the parties, by special agreement, to

add to, or diminish the effects of such implied warranty, or to

stipulate that the seller shall not be liable to any warranty.

1411. Although it is agreed that the seller should not be subject

to any warranty, nevertheless he shall be liable to that warranty

which arises from his own act; and any agreement to the contrary is

void.

1412. Even in case of a stipulation of no warranty, the seller, in

case of eviction shall, in the absence of an express agreement to the

contrary, be bound to return the price.

1413. Where there is a promise of warranty or where no

stipulation has been made in regard thereto, the buyer shall upon

eviction be entitled to claim from the seller -

(a) the return of the price;

(b) the return of the fruits, if the buyer has been obliged to

return them to the owner who has recovered the thing;

(c) all judicial costs, including those for giving notice of

the suit to the person from whom he derives his title;

(d) damages, including the lawful expenses of the contract

and any other lawful expense incurred in connection

with the sale.

1414. (1) Where, at the time of eviction, the thing sold has

decreased in value or has considerably deteriorated, either through

the negligence of the buyer or by irresistible force, the seller is still

bound to return the full price.

(2) Where, however, the buyer has derived a benefit from the

deterioration occasioned by him, the seller shall be entitled to

deduct from the price a sum corresponding to such benefit.

1415. If, at the time of eviction, the thing sold has increased in

value, even irrespective of the act of the buyer, the seller shall be

obliged to pay to the buyer the amount exceeding the price of the

sale.

1416. (1) The seller is bound to repay to the buyer or to cause

to be repaid to him by the person who has recovered the tenement

all expenses incurred by him in connection with any repairs or

useful improvements made on the tenement.

(2) Where the seller has sold the tenement of another person in

bad faith, he shall be bound to pay to the buyer all expenses, even

decorative expenses, which the latter may have made on the

tenement.

1417. (1) Where the eviction is only of part of the thing, and

such part is of such importance in relation to the whole that without

it the buyer would not have bought the thing, he may within a year

from the day on which the judgment as to the eviction has become

final and absolute, demand the dissolution of the sale.

(2) The said time shall run as provided in sub-article (2) of

article 1407.

1418. Where, in the case referred to in the last preceding article,

the buyer does not elect to dissolve the sale, the value to be

refunded to him by the seller in respect of the part affected by the

eviction shall be determined not in proportion to the entire price of

the sale but in accordance with a valuation in which regard will be

had to the time of the eviction, irrespective of any increase or

decrease in the value of the thing sold.

1419. (1) Where the tenement sold is subject to non-apparent

easements whereof no declaration was made and such easements

are of such importance that it may be presumed that the buyer

would not have bought the tenement if he had been given notice of

t h e m , h e m a y d e m a n d e i t h e r t h e d i s s o l u t i o n o f t h e s al e o r

compensation.

(2) The provisions of this article shall not apply in the case of a

judicial sale by auction.

1420. Where, however, a tenement has been sold as free and

exempt from any easement or other burden, or where the warranty

has been otherwise expressly promised, in such cases the buyer

may demand either the dissolution of the sale or compensation, if

the seller shall not cause any easement or other burden not declared

in the contract to cease, even though such easement or other burden

be apparent, and it be proved that it was known to the buyer at the

time of the sale, unless it is clearly shown that it was not the

intention of the parties to include such easement or burden in the

promise of warranty.

1421. Where the buyer has prevented eviction of the tenement by

paying a sum of money, the seller may free himself of all the

consequences of the warranty by refunding to him the sum paid

together with interest, and all expenses.

1422. The warranty against eviction ceases if the buyer has

suffered a final and absolute judgment to be given against him

without making the seller a party to the suit, if the latter proves that

he could have set up a good defence, not set up by the buyer,

whereby the action would have been dismissed.

1423. (1) In all cases where a shorter period is not fixed, the

action for breach of warranty against eviction shall be barred by the

lapse of two years to be reckoned from the day on which the

judgment against the buyer has become final and absolute.

(2) The said period of limitation shall run as provided in sub-

article (2) of article 1407.

O F W ARRANTY IN RESPECT OF L ATENT D EFECTS OF THE T HING

SOLD

1424. The seller is bound to warrant the thing sold against any

latent defects which render it unfit for the use for which it is

intended, or which diminish its value to such an extent that the

buyer would not have bought it or would have tendered a smaller

1425. The seller is not answerable for any apparent defects

which the buyer might have discovered for himself.

1426. Nevertheless, he is answerable for latent defects, even

though they were not known to him, unless he has stipulated that he

shall not in any such case be bound to any warranty.

1427. In the cases referred to in articles 1424 and 1426, the

buyer may elect either, by instituting the actio redhibitoria, to

restore the thing and have the price repaid to him, or, by instituting

the actio aestimatoria, to retain the thing and have a part of the

1428. (1) Where two or more things are sold together, so that

one would not have been sold or bought without the other, and one

of such things has a defect which gives rise to the actio redhibitoria

or aestimatoria, the buyer may not institute the actio redhibitoria

but in respect of all the things sold, although a price was specified

in respect of each.

(2) Where, however, the things sold together are independent

of one another, the said action may not be instituted but in respect

of the defective thing, although all the things had been sold for a

single price; and in such case the seller is bound to repay the price

of such thing according to a valuation to be made on the basis of

the total price agreed upon.

1429. (1) If the defects of the thing sold were known to the

seller, he is not only bound to repay the price received by him but

he is also liable in damages towards the buyer.

(2) If the defects were not known to the seller, he is only bound

to repay the price and to refund to the buyer the expenses incurred

in connection with the sale.

1430. (1) If the defective thing perishes in consequence of its

defects, the loss is borne by the seller, who shall be bound to repay

the price to the buyer and to indemnify him as provided in the last

preceding article.

(2) If the thing perishes by a fortuitous event, the loss is borne

by the buyer.

1431. (1) The actio redhibitoria and the actio aestimatoria

shall, in regard to immovables, be barred by the lapse of one year

as from the day of the contract, and, in regard to movables, by the

lapse of six months as from the day of the delivery of the thing

sold.

(2) Where, however, it was not possible for the buyer to

discover the latent defect of the thing, the said periods of limitation

shall run only from the day on which it was possible for him to

discover such defect.

(3) The said periods of limitation shall run as provided in sub-

article (2) of article 1407.

1432. The actio redhibitoria and the actio aestimatoria cannot

be maintained in case of judicial sales by auction.

Sub-title V

O F THE O BLIGATIONS OF THE B UYER

1433. If the time and place for the payment of the price are not

stated in the contract, the buyer must pay at the time and place of

the delivery of the thing.

1434. The buyer, even though there be no agreement to that

effect, is bound to pay interest on the price up to the day of

payment at the rate of five per cent per annum, indiscriminately in

the following cases

(a) if the thing sold and delivered yields fruits or other

profits;

(b) if, even though the thing yields no fruits or other

profits, he has been called upon by means of a judicial

intimation to pay the price;

(c) if the delivery of the thing, being movable, has not

taken place through the fault of the buyer, and the

seller has called upon him, by means of a judicial

intimation, to take delivery of the thing

Provided that in the cases mentioned in paragraphs (b) and (c),

interest shall run only from the day of the service of the said

judicial intimation.

1435. (1) The buyer is not bound to pay interest during the

time allowed to him in the contract for the payment of the price.

(2) Nevertheless, any time allowed by the seller after the

contract of sale shall not operate as a waiver of the interest on the

1436. If the thing is capable of yielding fruits or other profits,

the buyer shall still be bound to pay interest on the price, even

though owing to a fortuitous event or for any other cause the thing

shall have yielded no fruits or other profits during the time when

the price was still owing.

1437. (1) If the buyer is disturbed in the possession of the

thing or has reasonable cause to fear that he will be so disturbed, by

any action hypothecary or for the recovery of the thing rei

vindicatio, he may suspend the payment of the price until the seller

shall have caused the molestation to cease or shall have removed

the cause for which such molestation is feared, unless the seller

elects to give security, or unless it was agreed that the buyer was to

pay notwithstanding any molestation.

(2) Nevertheless, even in the case mentioned in this article, in

the event of any of the circumstances referred to in article 1434, the

buyer, if he suspends payment of the price, shall owe interest

thereon, unless he elects to pay the price into court.

1438. (1) The seller of an immovable cannot demand the

dissolution of the sale on the ground that the price has not been

paid to him.

(2) In the case, however, of goods or other movables, the

dissolution of the sale, even though no express resolutive condition

is attached to the contract, shall take place ipso jure in favour of the

seller, if the buyer previously to the expiration of the time fixed for

the delivery of the thing, has not presented himself to take delivery

thereof or if on presenting himself to take delivery of the thing he

has not concurrently tendered the price, unless a term of credit has

been agreed upon for the payment thereof.

1439. If the sale of a movable was made without any stipulation

as to credit, the seller may, in default of payment, take back the

thing sold, if it is still in the actual possession of the buyer, or

restrain the buyer from reselling the thing, provided the demand for

the recovery of the thing be made within fifteen days of the

delivery and the thing be in the same condition in which it was at

the time of the delivery.

Sub-title VI

O F THE D ISSOLUTION AND R ESCISSION OF S ALES

1440. Independently of the causes of rescission or dissolution

already mentioned in this Title, and of those which apply to all

agreements, a contract of sale may be, in whole or in part, dissolved

by the exercise of the right of redemption and may be rescinded on

the ground of lesion.

O F R EDEMPTION

1441. The right of redemption is created by agreement.

1442. The action for the recovery of an immovable, in pursuance

of a right of redemption, may be instituted not only against the

buyer, but also against any other possessor of the immovable; and

upon the re-sale, the immovable passes to the party exercising the

right of redemption, free from any hypothec, easement or other

burden with which the buyer or other possessor may have charged

it; saving, in regard to any contract of lease, the provisions

contained in articles 1530 and 1531.

1443. The party exercising the right of redemption is bound to

return to the party against whom such right is exercised the price of

the sale giving rise to the exercise of such right, and any other

lawful expense incurred by the buyer in connection with such sale,

as well as all necessary and useful expenses made on the thing

either by the buyer or by any other possessor, even though for any

cause whatsoever for which neither the party against whom the said

right is exercised nor any other former possessor is responsible, the

effect of such expenses no longer exists.

1444. The party against whom the said right is exercised is

entitled to interest from the day of the respective disbursements

which according to the last preceding article are to be refunded to

him, subject, however, to the deduction of the value of the fruits

which, as from the day of the sale giving rise to the exercise of the

right of redemption he or any other former possessor has collected

or by the use of the diligence of a bonus paterfamilias could have

collected

Provided that he may retain the fruits aforesaid and waive his

right to interest.

1445. The right to interest of the party against whom redemption

is exercised shall cease as from the day on which he is notified of

the deposit of the sums which are to be refunded to him, provided

the payment out of such deposit be not, without just cause,

restrained by the party exercising the right of redemption, in which

case, the right to interest will not cease except from the day on

which the restraint ceases.

1446. From the same day on which his right to interest ceases,

the party against whom the right of redemption is exercised is

bound to restore to the party exercising such right all fruits which

up to the day of the release of the thing he has collected or, by the

use of the diligence of a bonus paterfamilias, could have collected.

1447. Fruits which are pending on the day of the release of the

thing shall belong to the party exercising the right of redemption,

subject, however, to his obligation to reimburse the expense

incurred for their production and preservation.

1448. (1) The right of redemption is exercised by presenting a

schedule of redemption, in the registry of the competent court,

regard being had to the place of residence of the possessor of the

thing.

(2) The party exercising the right of redemption, however, shall

be deemed to have validly exercised such right by presenting the

schedule in the registry of the competent court according to the

place of residence of the buyer, unless he shall have previously

been, by means of a judicial intimation, informed of the transfer of

the thing from the buyer to another person; and in such case all

subsequent acts relating to the right of redemption so exercised

shall be presented in the same court.

1449. The party exercising the right of redemption shall,

together with the said schedule, or within ten days from the

presentation thereof, deposit a sum which will include -

(a) the price of the sale giving rise to the exercise of such

right;

(b) the fees of the notary before whom the deed of such

sale was received;

(c) the fees paid for the registration of the said deed in the

Public Registry where such registration has taken

place;

(d) any other lawful expense which from the deed of that

sale appears, or which the party aforesaid otherwise

knows to have been incurred by or charged to the

buyer.

1450. (1) Where a right of redemption has been exercised, it

may not be impeached on the ground that the deposit was made

after the time fixed for the exercise of such right, provided the

deposit is made within the ten days mentioned in the last preceding

article.

(2) Where, however, the deposit is not made within the ten days

as aforesaid the schedule of redemption shall cease to be effectual,

even though the deposit shall have been made before the lapse of

the time fixed for the exercise of the said right, saving the power of

the party presenting the schedule to exercise again the right of

redemption by presenting a fresh schedule within such time, and

saving also any other provisions contained in articles 1451 to 1468.

1451. (1) Nor may the exercise of the right of redemption be

impeached for default of the deposit in whole or in part, if the party

exercising such right, instead of the deposit or of the deficiency in

the amount of the deposit, has offered to set off an equal sum,

liquidated and exigible, owing to him by the party against whom

the said right is exercised, or if, where the default of the deposit is

only in part, it clearly appears from the circumstances that the

deficiency was due to inadvertence or error.

(2) The fact, however, that the deficiency was due to

inadvertence or error, shall not benefit the party exercising the said

right, unless he shall supplement the deposit within ten days from

the day on which the party against whom the said right is exercised

shall have, by means of a judicial act, called upon him to do so.

1452. The party exercising the right of redemption may recede

therefrom until the party against whom such right is exercised shall

have signified, by means of a judicial act, his acceptance thereof.

1453. (1) The party against whom the said right is exercised is

not bound to make the re-sale of the thing in favour of the party

exercising such right until the latter shall have fulfilled all his

obligations in accordance with the provisions of articles 1443, 1444

and 1445.

(2) The expenses of the re-sale shall be at the charge of the

party exercising the said right.

1454. (1) The party against whom the right of redemption is

exercised may at any time after the presentation of the schedule of

redemption, demand the liquidation of the expenses, necessary or

useful, to which he is entitled, and compel the party exercising such

right to pay the said expenses on the day which, on the demand of

the former, the court shall have fixed for the re-sale.

(2) The party exercising the right of redemption may also at

any time after the presentation of the schedule, demand that the

exp enses aforesaid be liqui dated and t hat the defen dant be

condemned to make the re-sale at such time and in such manner as

the court shall direct.

1455. Where the thing is damaged in consequence of a fortuitous

event, the party exercising the right of redemption shall not be

entitled to any abatement of the sums due by him under the

provisions of the foregoing articles.

1456. Where the thing has been damaged by the party against

whom the right of redemption is exercised or by any other former

possessor, the party exercising such right shall only be entitled to

claim damages up to the amount of the profit which the tort-feasor

may have derived therefrom, unless it is shown that the latter

caused the damage for the purpose of avoiding the redemption, or

of prejudicing the party exercising such right, saving the provisions

of article 1461.

1457. Any time established by law in regard to the right of

redemption, is peremptory.

1458. (1) It shall be lawful for the seller in the contract of sale,

to reserve to himself the right of redemption, or the power of taking

back the thing sold, by returning the price, and paying the expenses

and interest as provided in articles 1443, 1444 and 1445.

(2) Any agreement whereby the seller is to return a higher sum

is null in regard to the excess.

1459. (1) The right of redemption cannot be reserved for a

period exceeding five years to be reckoned from the day of the sale.

(2) Where the right of redemption has been reserved without

any limitation of time, or for a period exceeding five years, the

agreement is null in regard to any time exceeding five years.

(3) The period fixed by the contract or reduced as aforesaid, is

peremptory; and it runs also against minors and persons interdicted

or absent.

1460. (1) The seller of an immovable who has reserved to

himself the right of redemption may exercise such right against a

third party in possession even though no mention of such right shall

have been made in the contract whereby such third party shall have

acquired the immovable.

(2) In regard to movables, the right of redemption cannot be

exercised if the movables have passed into the hands of a third

party.

1461. (1) The buyer under a covenant of redemption may

exercise all the rights of his seller; he may prescribe against the

true owner as well as against persons claiming to have rights or

hypothecs on the thing sold; and may also set up the benefit of

discussion against the creditors of his seller.

(2)

He may not, however, alter the form of the thing sold.

1462. If the buyer of an undivided portion of a tenement under a

covenant of redemption becomes the owner of the whole tenement

as a result of proceedings of licitation instituted against him, he

may compel the seller desiring to enforce such covenant to redeem

the whole tenement.

1463. If several persons have jointly and by a single contract

sold a tenement held in community, each may exercise the right of

redemption in respect only of the portion which he owned.

1464. Where the person who alone has sold a tenement has left

several heirs, each of them may exercise the right of redemption in

respect of that portion only which he takes as heir.

1465. (1) The buyer, however, in the cases mentioned in the

last two preceding articles, may, by means of a judicial act, call

upon all the other sellers of the common property, or all the other

co-heirs, to declare whether they too desire to exercise the right of

redemption in regard to their respective portions.

(2) The co-sellers or co-heirs so called upon shall make the

aforesaid declaration within the time remaining for the exercise of

the right of redemption, provided that if such time is less than ten

days, or has entirely elapsed, such declaration shall be made within

ten days to be reckoned from the service of the said judicial act.

1466. If within the aforesaid time any of the co-sellers or co-

heirs fails to declare that he desires to exercise the right of

redemption in respect of his portion, the buyer shall become

irrevocably the owner of the whole tenement, unless such of the co-

sellers or co-heirs as may have exercised the right of redemption in

respect of their portion shall, upon being called upon by the buyer

by means of a judicial act, and within ten days from the service

thereof, redeem the whole tenement in accordance with the

provisions of article 1448.

1467. If the sale of a tenement belonging to several persons has

not been made jointly and in respect of the whole tenement, but

each of such persons has separately sold his portion, each seller

may exercise the right of redemption separately in respect of the

portion which belonged to him, and it shall not be competent to the

buyer to compel the person who so exercises his right of

redemption to redeem the whole tenement.

1468. (1) If the buyer has left several heirs, the right of

redemption may only be exercised against each of them in respect

of his share, irrespective of whether the tenement sold is still

undivided, or whether a partition thereof has already been made

among the heirs.

(2) Nevertheless, if the estate has been divided, and the thing

sold has been entirely allotted to the share of one of the heirs, the

right of redemption can be exercised against such heir in respect of

the whole tenement.

Sub-title VII

O F THE A SSIGNMENT OF D EBTS AND OTHER R IGHTS

1469. The assignment or sale of a debt, or of a right or of a cause

of action is complete, and the ownership is ipso jure acquired by

the assignee as soon as the debt, the right or the cause of action,

and the price have been agreed upon, and, except in the case of a

right transferable by the delivery of the respective document of

title, the deed of assignment is made.

1470. (1) The assignment is not valid unless made in writing.

(2) The assignment of hereditary rights, or of debts, rights or

causes of action arising from public deeds is void unless made by a

public deed.

1471. The assignee may not, in regard to third parties, exercise

the rights assigned to him except after due notice of the assignment

has been given to the debtor, by means of a judicial act, by the

assignee himself or by the assignor.

1472. In default of such notice, or until such notice is given -

(a) the debtor may not set up the assignment against his

creditor, and if he pays the debt to him he is thereby

discharged;

(b) if the creditor, after having assigned the debt to one

person, makes a second assignment thereof to another

person who is in good faith, such other person, if he

has given notice of the assignment made in his favour,

shall be preferred to the former assignee;

(c) if the creditors of the assignor shall sue out a garnishee

order attaching the sum due in the hands of the debtor,

they shall be preferred to the assignee, even though

they have become creditors only after the assignment;

(d) the debtor is entitled to set off any sum which may

become due to him by the assignor; but the assignee

may not set off the debt assigned to him against any

sum owing by him to the debtor.

1473. The notice is not necessary if the debtor has acknowled-

ged the assignment.

1474. Neither the notice, nor the acknowledgment referred to in

the last preceding article shall be necessary in regard to bills of

exchange or other documents of title transferable by endorsement

or delivery.

1475. The assignment of a debt includes every security, privilege

or hypothec attached to the debt and every other thing accessory to

it; but it shall not include the fruits accrued due or any rescissory

action, unless express mention thereof has been made in the

assignment.

1476. (1) The assignor of a debt or any other right is bound to

warrant its existence at the time of the assignment, although no

express stipulation of warranty has been made in the assignment.

(2) If the debt does not exist, the assignor is bound to return the

has been negatived either by a declaration of the assignor that he

was making the assignment without any warranty, or by other

words to that effect.

1477. (1) The assignor is not answerable for the solvency,

whether present or future, of the debtor, unless he has expressly

bound himself thereto, either by declaring the debt good and

collectable or by other words to that effect.

(2) If the assignor has promised such warranty, he shall be

bound only to the extent of the price of the assignment.

1478. (1) Where the assignor has warranted the solvency of

the debtor without any limitation as to the duration of such

warranty, such warranty shall be limited to one year as from the day

of the assignment if the debt has already fallen due, or from the day

on which the debt falls due if at the time of the assignment it has

not yet fallen due.

(2) Where the subject-matter of the assignment is a right to an

annuity, the warranty shall not extend beyond ten years from the

day of the assignment.

1479. The obligation as to warranty ceases, if the debt becomes

irrecoverable through the negligence of the assignee.

1480. (1) The assignee is bound to proceed against the debtor

before he can proceed against the assignor, unless it is agreed that

the assignor shall pay for the debtor should the latter fail to pay on

mere demand.

(2) If there is such an agreement the assignee is not bound to do

any act to safeguard the debt; and the assignor is liable to the extent

of the debt assigned.

1481. (1) A person who sells an inheritance without distinctly

specifying the things of which it consists, is only bound to warrant

his capacity as heir.

(2) If the inheritance does not exist because the succession is

not yet open, or if it exists but the seller has no right to it, he is

bound to restore to the buyer the price and shall be liable towards

him in damages.

(3) A person who has only sold his claim to a succession so

that the buyer may bring forward such claim at his own risk, is not

bound to any warranty nor to return the price.

1482. If the seller is himself a debtor towards the inheritance or

has received any property of the inheritance, he is bound to pay his

debt to, or, as the case may be, indemnify the buyer: on the other

hand, the buyer is bound to restore to the seller any sum which the

latter may have paid in satisfaction of any debt or burden of the

inheritance and to pay to the seller any claim which the latter may

have against the inheritance, unless, in either case, it be otherwise

stipulated.

1483. (1) Where a litigious right has been assigned, the debtor

in the obligation may obtain his release from the assignee by

reimbursing to him the actual price of the assignment together with

the expenses and interest to be reckoned from the day of the

payment of the said price by the assignee.

(2) A right is deemed to be litigious, if there is a contested suit

as to the existence thereof or if the debt due is not liquidated and is

difficult to liquidate.

1484. The provisions of the last preceding article shall not

apply-

(a) if the assignment has been made by a co-heir or a co-

owner, to another co-heir or co-owner of the right so

assigned;

(b) if the assignment has been made to a creditor in

satisfaction of his claim;

(c) if the assignment has been made to the possessor of the

tenement subject to the litigious right;

(d) if the assignment has been made under a purely

gratuitous title.

1484A.(1) In the case of an assignment of one or more debts

where

(a) the assignor is a trader;

(b) the debts being assigned arise out of or in connection

with the trade or business being carried out by the

trader; and

(c) the assignee is a person licensed to carry out the

business of banking or the business of factoring under

the applicable laws of Malta, or the equivalent laws in

a jurisdiction recognised by the competent authority

appointed in terms of the Banking Act,

such assignment of debts shall be governed by the provisions of

this Sub-Title, as varied by this article.

(2) Classes of existing debts may be assigned provided that the

debtor be identified in the contract of assignment.

(3) Future debts, or classes thereof, may also be assigned

provided that the debtor and the latest date by which the future

debts shall come into existence be identified in the contract of

assignment. In such cases an assignment is effective at the time of

the conclusion of the contract without a new assignment being

required when such debt comes into existence.

(4) In the case of the assignment of debts referred to in this

article, the assignee may not, in regard to third parties, exercise the

rights assigned to him except after due notice of the assignment has

been given to the debtor by the assignee himself or by the assignor

and, in the case of an assignment of future debts, or of classes

thereof, no further notice shall be required when the future debt

comes into existence.

(5) Notice of an assignment may be evidenced in writing by

any means, including by a notice sent to the debtor together with

the document evidencing the debt and need not be signed by the

assignor or the assignee.

(6) The assignment need not state a fixed price nor need the

to any formula or method agreed between the parties.

(7) The assignor shall be answerable for the solvency, whether

present or future, of the debtor, to the extent of the price of the

assignment, unless the assignee renounces to such warranty in

whole or in part.

(8) In the event of insolvency or bankruptcy of the assignor, the

assignment of future debts which have not yet come into existence

on the date a winding-up or bankruptcy order is made by a Court,

may be rescinded by the liquidator or the curator of the assignor.

The right of rescission of the assignment of future debts shall be

conditional on the refund of any consideration paid by the assignee

to the assignor for such future debts.

(9) Articles 1483(1), 1506(1), 2013(3) shall not apply to

assignment of existing or future debts, or classes thereof, governed

by this article.

(10) All the above provisions shall apply mutatis mutandis to the

pledging of debts referred to in this article and the provisions of

Title XXI of Part II of Book Second of this Code shall be construed

accordingly.

(11) Articles 1980 to 1984 of this Code shall not apply and an

assignee shall have a right of use over, and the right to sub-pledge,

debts which have been assigned to him.

Title VII

O F E XCHANGE

1485. (1) Exchange is a contract whereby the parties mutually

bind themselves to give to one another a thing, not being money.

(2) Exchange takes place by bare consent, in the same manner

as sale.

1486. (1) The contract shall not cease to be a contract of

exchange, even though the value of the things which the parties

bind themselves to give to one another has been stated or one of the

parties has bound himself to give together with the thing, a

supplement in money.

(2) Nevertheless, if the sum of money which one of the parties

binds himself to pay exceeds the value of the thing which such

party binds himself to give, the contract shall be deemed to be a

contract of purchase and sale in regard to all the things which the

parties have bound themselves to give to one another.

1487. The party to whom a supplement in money is due, may

exercise over the thing which he has given all rights and privileges

competent to a seller in respect of the price, even though the

contract is, under the provisions of the last preceding article, a

contract of exchange.

1488. A movable may be exchanged for an immovable.

1489. In any case, however, where an immovable is given in

exchange for a movable or an immovable, the contract is void if not

made by a public deed.

1490. A party to an exchange who, after having received the

thing given to him in exchange, proves that he who has given the

thing to him is not the owner thereof, cannot be compelled to

deliver the thing which he has promised to give, but only to return

the thing which he has received.

1491. (1) A party to an exchange who has suffered the eviction

of the thing which he has received in exchange, may at his option,

either demand damages, or recover the thing given by him.

(2) Where such party elects to recover the thing, he may, if the

thing is an immovable, maintain an action for the recovery of the

thing even against a third party in possession thereof; and he shall

take it back free from any burden or hypothec with which the other

party to the exchange or the third party in possession may have

charged it

Provided that in regard to any lease made in good faith and on

fair conditions, the provisions of article 1530 shall apply.

1492. (1) All expenses of, or incidental to the contract of

exchange shall be borne by the two contracting parties, in equal

shares.

(2) Nevertheless, the expense necessary for freeing an

immovable from the fetters of any entail or from any hypothec,

easement or other burden in accordance with the provisions

contained in Title II of Part II of Book Second of the Code of

Organization and Civil Procedure, shall be borne by the party to the

exchange who receives such immovable.

1493. Any other rule relating to the contract of sale shall also

apply to a contract of exchange.

Title VIII

O F E MPHYTEUSIS

1494. (1) Emphyteusis is a contract whereby one of the

contracting parties grants to the other, in perpetuity or for a time, a

tenement for a stated yearly rent or ground-rent which the latter

binds himself to pay to the former, either in money or in kind, as an

acknowledgment of the tenure.

(2) The provisions of this Title shall apply to any emphyteusis

whatsoever, even where the amount of the ground-rent shall have

been fixed with reference to the value of the fruits of the tenement.

1495. Emphyteutical grants may not be made by persons who are

under a disability to alienate property, unless expressly authorized

to that effect by the competent authority, according to law.

1496. Notwithstanding any prohibition in the deed creating the

entail, possessors of tenements subject to entail may, in accordance

with the provisions contained in Sub-title V of Title VIII of Part I

of Book Second and in Title I of Part II of Book Second of the Code

of Organization and Civil Procedure, obtain from the competent

court authority to grant such tenements on emphyteusis, in

perpetuity or for a time, provided the court is satisfied that such

grant is to the advantage of the persons entitled to succeed.

1497. Emphyteusis is null -

(a) if not made by a public deed; or

(b) if the grant is otherwise than in perpetuity or for a

stated time to be reckoned from any certain day; or

(c) if the amount of the ground-rent is not expressly stated

in the contract.

1498. (1) Where a tenement is granted for a time exceeding

sixteen years or in such manner that the grant may by the grantee be

made to last for more than sixteen years, and, in either case, under

conditions which are in accordance with the provisions of the

following article of this Title rather than with those relating to

contracts of letting and hiring, the grant shall be deemed to be an

emphyteutical grant, although the parties shall have termed it a

contract of letting and hiring; and any such grant is null if made

otherwise than by a public deed.

(2) On the contrary, where a tenement is granted under a title of

emphyteusis, the grant shall be deemed to be an emphyteutical

grant, notwithstanding the shortness of the period for which it is

made and the nature of the stipulations attached thereto.

1499. (1) The rules contained in the foregoing articles and in

articles 1501,1502, 1512, 1513 and 1519, shall be observed in all

cases and any agreement contrary thereto shall be without effect.

(2) Save as provided in sub-article (1), it shall be lawful for the

contracting parties to make in a contract of emphyteusis any

stipulation which they may deem proper, provided there be nothing

contrary to law.

(3) Without prejudice to the provisions of sub-article (1), in the

absence of any special agreement, the rules contained in the

following articles shall be observed.

1500. (1) The ground-rent during the continuance of the

emphyteutical grant is unalterable.

(2) The emphyteuta cannot claim any reduction of the ground-

rent by reason of any change of circumstances.

(3) Nor can he claim any remission or abatement of the ground-

rent for one or more years if as a result of a fortuitous event,

whether ordinary or extraordinary, foreseen or unforeseen, the

whole or part of the produce is lost.

1501. (1) Where a grant in emphyteusis is made in perpetuity,

the emphyteuta, even though the ground-rent may be revised at

stated intervals of time, shall have the option to redeem the ground-

rent as provided in the following sub-articles of this article, unless

the contract itself, being a contract entered into before the 15th

August, 1981, provides for a different manner in which the

redemption may be effected.

(2) Such redemption of the ground-rent shall be made by the

payment of a sum equivalent to the amount of the ground-rent

capitalised at the rate of five per cent

Provided that where the contract provides that the ground-rent

may be revised at a specified time or on the happening of a

specified condition, the redemption may be opted for by the

emphyteuta within the first year of the date of any such revision, or

the happening of such condition, and the sum payable for the

redemption of the ground-rent shall, in such case, be equivalent to

the amount of ground-rent so revised capitalised at the average rate

of interests payable by a commercial bank on deposits of a fixed

nature at the time of the redemption.

(3) Where there are more than one dominus, the emphyteuta

may redeem from one or more of them separately.

(4) Where the tenement is held in sub-emphyteusis in

perpetuity, the sub-emphyteuta shall be entitled to redeem the

original ground-rent and the increase in ground-rent by the

payment of the sum due for the redemption established in

accordance with the provisions of this article.

(5) Any clause in any agreement whereby the emphyteuta is

deprived of the right of redeeming the ground-rent conferred by

this article, shall be considered as if it has not been included in

such agreement.

(6) The redemption of the ground-rent may be effected by an

agreement between the dominus and the emphyteuta made in a

public deed or by means of the schedule referred to in sub-article

(7) of this article.

(7) Where the redemption is not made by public deed, the

emphyteuta may effect such redemption by filing at his expense in

the registry of the competent court, a schedule of redemption and at

the same time depositing in the said registry the sum due for the

redemption established in accordance with the provisions of sub-

article (2); and with respect to such schedule, the following

provisions of this sub-article shall, notwithstanding anything to the

contrary in any other law contained, have effect

(a) where the person first granting the emphyteusis or the

person to whom the rights of the dominus are assigned

is dead, the schedule of redemption may be served on,

and the deposit may be made in favour of, one or more

heirs of the dominus or his assignee, and such heir or

heirs shall, for all purposes of law, be deemed to

represent all those persons having a legal interest in

the schedule of redemption and in the money so

deposited;

(b) the omission from the schedule of the name of any

person having an interest in any part of the moneys

deposited in accordance with the provisions of this

article, shall not affect the right of any person so

omitted to any share in the amount deposited;

(c) the schedule shall contain

(i)

the name and surname of the person of the

emphyteuta, his place of birth, his place of

residence, his profession, trade or other status,

his parent's name, and their surname at birth and

after marriage, or in the case of a body of persons

the corporate name of such body of persons and

the particulars relative to its incorporation;

(ii) the name and surname of the person named in

the schedule, his place of birth, his place of

residence, his profession, trade or other status,

his parent's name, and their surname at birth and

after marriage, or other particulars sufficient to

identify such person, or in the case of a body of

persons the corporate name of such body of

persons and the particulars relative to its

incorporation; and

(iii) the designation in accordance with article 7 of

the Public Registry Act of the immovable in

relation to which the ground-rent redeemed was

payable;

(d) the emphyteuta shall attach to the schedule a plan

showing the extent and location of the immovable

subject to the ground-rent redeemed;

(e) service of the schedule shall be effected only on the

person named in such schedule and if within three

months from the day on which the schedule is filed,

service is not effected on the person aforesaid, either

by reason of absence or for any other reason, the

emphyteuta shall at his expense request the Registrar

of Courts to have the contents of the schedule

published in the Gazette, and upon such publication

the person on whom the schedule was due to be served

shall, for all purposes of law, be deemed to be served

with the schedule;

(f)

the emphyteuta shall cause two copies of the schedule

to be served on the Director of Public Registry, who

shall keep a register of such schedules, and article 30

of the Public Registry Act shall, mutatis mutandis,

apply to such schedules.

(8) The deposits mentioned may be withdrawn by the persons

entitled thereto on proof of their title being made to the Registrar of

Courts.

1502. (1) The ground-rent cannot be divided without the

consent of the dominus; but where the tenement is transferred or

otherwise belongs to two or more persons separately, the dominus

may not refuse his consent for the division of the ground-rent if

such division is made substantially in proportion to the separate

parts held by the persons requiring the consent.

(2) The consent given by the dominus for the transfer of one or

more separate parts of the tenement to different persons, or the

receipt by him of one or more portions of the ground-rent, from one

or more of such persons, shall have the same effect as an express

consent given by the dominus for the division of the groundrent.

1503. (1) A co-possessor who has paid the entire ground-rent,

obtains reimbursement from the other co-possessors pro rata

having regard to the portion of the tenement held by each,

notwithstanding any assignment of rights.

(2) He contributes, in the same proportion, with the other co-

possessors in respect of the shares of such of the co-possessors as

are insolvent.

1504. (1) The emphyteuta may alter the surface of the

tenement, provided he does not thereby cause any deterioration

thereof.

(2) He is entitled to any profit which the tenement may yield

and has the right to recover the tenement from any holder, even if

such holder is the dominus.

(3) He is also entitled to the treasure trove found in the

tenement, saving such portion thereof as according to law is due to

the person who has found it.

1505. The emphyteuta shall keep, and in due time restore the

tenement in a good state.

1506. (1) All improvements made by the emphyteuta appertain

to him during the continuance of the emphyteusis.

(2) He may alter the form of such improvements; but he may

not destroy them without the express consent of the dominus.

1507. The emphyteuta is bound to carry out any obligation

imposed by law on the owners of buildings or lands

Provided that if for the carrying out of any such obligation a

considerable expense is required, and the emphyteusis is for a time,

the court may, upon the demand of the emphyteuta, compel the

dominus to contribute a portion of such expense, regard being had

to the covenants of the emphyteusis, to the remaining period of the

grant, to the sum of the ground-rent and to other circumstances of

the case.

1508. (1) The emphyteuta may, without giving notice to the

dominus or requiring his consent, dispose of the emphyteutical

tenement and of the improvements, either by an act inter vivos or

by any testamentary disposition.

(2) Any alienation, however, made otherwise than by a public

deed, is null.

1509. (1) Where the emphyteuta makes any such disposal

without the consent of the dominus, he shall not be released from

his obligations towards the dominus himself unless the latter

acknowledges the alienee.

(2) The alienee, however, although not acknowledged by the

dominus, is personally bound towards him for the payment of the

whole amount of ground-rents which fall due during his tenure, and

for the repair of all damages which take place during such tenure;

but he is not liable for the ground-rent which fell due, or for the

damages which took place previously to such tenure; saving

always, even in respect of such ground-rent and damages, the rights

of the dominus on the emphyteutical tenement, on the fruits and on

the value of all things which serve for the furnishing or stocking or

for the cultivation of the tenement, to whomsoever such things may

appertain

Provided that such rights shall not be available to the proprietor

in respect of the said things if the same belong to or are held by or

on behalf of any department of the Government of Malta in any

case in which such department is not itself liable for the payment of

the debt.

1510. The dominus may not refuse to acknowledge, in lieu of the

emphyteuta, the alienee under any title, of the emphyteusis, if the

alienee is a competent person to carry out the obligations arising

from the emphyteutical grant.

1511. An alienee, under any title, of an emphyteusis, in

possession of the tenement, whom the dominus has acknowledged

or has offered to acknowledge, may not refuse to acknowledge

expressly the dominus or to bind himself personally towards him

for the carrying out of the obligations arising from the

emphyteutical grant.

1512. (1) Any of the acknowledgements mentioned in the last

two preceding articles may be either express or implied; and the

payment or receipt of ground-rent or of a fine by or from the

alienee shall operate as an implied acknowledgement, unless an

express reservation is made by a judicial act.

(2) Both the dominus and the alienee may require the

acknowledgement to be made by a public deed or a private

instrument; and in any such case the expenses shall be borne by the

party requiring the written form.

1513. The dominus shall not be entitled to exact any sum by way

of fine, by whatever name called, upon any sale or other alienation

made after the 1st July, 1976, of the dominium utile or of the

improvements unless -

(a) the emphyteutical grant contains an express agreement

providing for such payment, and

(b) the emphyteutical grant is one which is made for a

period exceeding twenty years;

and where any sum due in accordance with the foregoing

provisions of this article exceeds the amount of the ground-rent for

one year due to that dominus in respect of the tenement or part of

the tenement sold or alienated, such dominus shall not be entitled to

any such excess.

1514. The provisions of articles 1357, 1359 and 1360 shall apply

to a promise made in respect of emphyteusis after the lst of July,

1976, as they apply to a promise to sell or to buy.

1515. (1) An emphyteusis is dissolved ipso jure if the

tenement perishes in whole by a fortuitous event.

(2) If the tenement perishes in part, and the remaining part is

not capable of yielding a rent equivalent to the ground-rent, the

emphyteuta may not claim a reduction of the ground-rent, but he

may demand the dissolution of the emphyteusis, restoring to the

dominus the tenement with the improvements even if the remaining

part of the tenement consists chiefly of such improvements.

1516. It is incumbent on the emphyteuta to prove that the

tenement has perished, wholly or in part, by a fortuitous event, and

without any fault on his part or on the part of his family, or of his

servants, guests or tenants or of the sub-emphyteutae not

acknowledged by the dominus.

1517. It shall be lawful for the dominus to demand the

dissolution of the emphyteusis and the reversion in his favour of

the tenement together with the improvements if the emphyteuta

owes by way of ground-rent a sum equal in amount to three yearly

payments.

1518. (1) It shall also be lawful for the dominus to demand the

dissolution of the emphyteusis and the reversion in his favour of

the tenement together with the improvements, in addition to the

repair of any damage, if the tenement has considerably

deteriorated, and the emphyteuta fails to show that such

deterioration has taken place without any fault on his part or on the

part of the persons mentioned in article 1516.

(2) The same shall apply where the deterioration has taken

place in the improvements executed on the tenement.

1519. (1) In the cases mentioned in the last two preceding

articles, it shall be competent to the dominus to demand the

dissolution of the emphyteusis and the payment of the arrears of the

ground-rent, concurrently.

(2) Nevertheless, the court may, in each of the cases aforesaid,

grant to the defendant a reasonable time, according to

circumstances, for the payment of the arrears or for the execution

of the repairs, and such time may, for a just cause, be extended once

to a further reasonable time.

(3) The provisions of the foregoing sub-articles shall apply also

in any case in which the dissolution of the contract has been

expressly agreed upon for any reason, and shall so apply even if the

agreement excludes the grant of any time.

(4) Nothing in this article shall be construed as requiring the

payment of any ground-rent or other sum that is not due, whether

because the demand therefor is barred by prescription or for any

other reason.

1520. (1) Any creditor of the emphyteuta, or any other person

interested may intervene in the suit and make the demand for the

time aforesaid; and he may also within such time, even though

granted with his intervention on the demand of the emphyteuta,

prevent the dissolution of the emphyteusis by paying the arrears or

by executing the repairs required.

(2) In such case, the creditor or other person interested shall,

for the reimbursement of the arrears paid or of the expense incurred

in the execution of the repairs, be vested with the rights of the

dominus as against any other creditor of the emphyteuta, excepting,

however, the dominus himself.

1521. (1) A temporary emphyteusis ceases on the expiration of

the time expressly agreed upon, and the reversion, in favour of the

dominus, of the tenement together with the improvements takes

place, ipso jure.

(2) Any action for the renewal of the emphyteusis for any cause

whatsoever, except by virtue of an express covenant in the

emphyteutical grant or in any other public deed, is abolished, in

regard to any kind of property whatsoever.

1522. In all cases of reversion, any hypothec, burden or

easement, even though such easement may have been created

without the act of the emphyteuta, shall be dissolved both in regard

to the tenement and to the improvements; and the tenement together

with the improvements shall revert unencumbered to the dominus,

saving, in regard to any lease thereof, the provisions of articles

1530 and 1531.

1523. (1) Upon reversion, the emphyteuta shall not be entitled

to any compensation in respect of the improvements, whatever their

nature or value, unless reversion takes place for any of the causes

mentioned in articles 1517 and 1518.

(2) In the cases mentioned in the said two articles, the dominus

is bound to pay to the emphyteuta the price of the improvements,

regard being had to their value at the time of the reversion, up to

the amount by which the value of the tenement is found to have

increased in consequence of such improvements at the time of the

reversion, as well as to the remaining period of the emphyteusis.

1524. The provisions of this Title shall apply to all contracts of

emphyteusis whether made before or after the lst July, 1976, other

than those emphyteuses which had terminated before the said date

1976. or which, before that date, were determined or dissolved by

agreement, or by a judgment which had become res judicata, or by

operation of law; in respect of such latter emphyteuses the law

applicable at the time of their termination, determination or

dissolution shall, in so far as necessary, continue to apply.

Title IX

OF CONTRACTS OF LETTING AND HIRING *

GENERAL PROVISION

1525. (1) A contract of letting and hiring, whether of things or

of work and labour, may be made either verbally or in writing,

provided that a contract of letting and hiring of urban property and

of a residence and of a commercial tenement entered into after the

1st January, 2010 shall be in writing.

The Rent Regulation Board (hereinafter referred to as the

"Rent Board") established under the Reletting of Urban Property

(Regulation) Ordinance shall decide all matters affecting the leases of

urban tenements including residential as well as commercial tenements

including causes relating to the occupation of urban tenements where

such leases have expired, and any damages resulting during such

period of occupation. Other leases fall under the competence of the

courts of civil jurisdiction while matters relating to agricultural leases

shall fall under the competence of the Rural Leases Control Board

appointed according to the provisions of the Agricultural Leases

(Reletting) Act

Provided that matters relating to the validity of a contract of

lease, shall be examined by the courts of civil jurisdiction, so however,

*The transitory provisions relating to the amendments made to this Title by Act X of

2009 are reproduced at the end of this Chapter.

that any other matter following the determination of such matters

relating to validity shall fall under the competence of the Rent Board.

The Rent Board shall also have the competence to decide demands

related to maintenance, repairs, defects and faults of the tenement

including latent ones, damages or improvements, amounts due for

water and electricity and any amount left by way of security deposit by

the tenant, where such demands are included in other demands or pleas

made before the Board, over which the Adjudicating Panel has no

jurisdiction.

The Rent Board has the authority to request information

and documentation from government entities, departments and

authorities as well as from any other entity to meet its functions as

established in this Code.

(2) Unless otherwise specifically stated in this Title, the

provisions of this Title shall not apply to agricultural leases which

shall continue to be regulated by the provisions of the Agricultural

Leases Reletting Act.

(3)

For the purposes of this Title

"commercial tenement" means an urban tenement which is not a

residence and which is leased to house an activity primarily

intended to generate profit and includes, but is not limited to, an

office, a clinic, a tenement leased out for the sale of merchandise

by wholesale or retail, a market stall, a warehouse, a storage used

for commercial purposes as well as any tenement licensed to sell

things, wines, spirits or foodstuff or drinks, theatre, or tenement

mainly used for any art, trade or profession

Provided that a tenement leased to a society or leased to a

musical, philanthropic, social, sporting or political entity, that is

used as a club, shall not be considered as a commercial tenement

even if part of it is used for the purpose of generating profit;

"club" means any club which is registered as such with the

Commissioner of Policein accordance with the appropriate provisions

of the law;

"private residential lease" means any long or short private

residential lease, including the letting of shared residential space,

which is entered into after 1st January, 2020, and any leases for a

residential purpose entered into before the 1st January, 2020, which

would still be in its original or renewed period on the 1st January,

2021. Sub-title I

OF THE LETTING OF THINGS

1526. (1) The letting of things is a contract whereby one of the

contracting parties binds himself to grant to the other the

enjoyment of a thing for a specified time and for a specified rent

which the latter binds himself to pay to the former.

(2) Any kind of corporeal property, whether movable or

immovable, may be the subject of a contract of letting and hiring.

(3) The letting of ships and aircraft, including aircraft engines,

shall be regulated by the provisions of any agreement between the

lessor and the lessee in accordance with its terms as well as by the

international usages of trade applicable in the context.

Notwithstanding any of the provisions of this sub-title, any

agreement relating to the letting of ships or aircraft or aircraft

engines, shall be governed by

(a) the terms and conditions agreed between the parties,

and in case of conflict with the provisions of this

Code, such terms and conditions shall prevail; and

(b) the special laws relating to merchant shipping and civil

aviation, as the case may be.

(4) The requirement in article 1569 for a notice by judicial act

for the cessation of a lease shall not apply and the termination of

the lease shall be regulated by the agreement between the parties

and any notice of termination which may be required to be given by

any parties may be given by notice in writing in any manner,

including by electronic means.

(5) The lease of a ship or an aircraft, including aircraft engines,

or rights thereunder, shall be immediately dissolved or terminated

by the lessor (or mortgagee who shall be deemed to have such

power unless expressly waived) at any time in the event of a default

and upon notice in writing to the lessee, notwithstanding the

o p po s i t i o n b y t h e l e s s e e , a n d t h i s w i t h o u t t h e n e e d o f an y

authorisation or confirmation by any court that an event of default

has taken place.

In such circumstances the lessor may, after notice to the

lessee, take possession of the ship or aircraft, including an aircraft

engine, in accordance with the agreement between the parties and

may, by application, ask the Court for an order authorising or

directing these acts, and the Court shall render full support to the

lessor or the mortgagee as expeditiously as possible.

(6) In the event that the lessor terminates the lease agreement

for reasons which are not

(a) contemplated in the agreement, or

(b) generally valid reasons at law,

the lessee may seek damages for breach of the agreement.

(7)

For the purposes of this article

(a) the term "aircraft" shall have the same meaning as

ascribed to it in the Aircraft Registration Act;

(b) the term "default" means

(i)

the fulfilment of a condition under which the

dissolution of the lease was expressly

covenanted or a failure by a party to perform his

obligations; or

(ii) a change in the financial condition of the lessee

as stated in article 1079; or

(iii) a default which substantially deprives the

mortgagee of what it is entitled to expect under

the agreement between the mortgagor and the

mortgagee;

(c) the term "lease" of ships and aircraft shall refer to the

chartering thereof under terms where possession or

control is given to the lessee, including bareboat

charters or the equivalent;

(d) the term "mortgagee" shall include a mortgagee acting

in its capacity as security trustee, bond trustee or by

whatever name called;

(e) the term "ship" shall have the same meaning as

ascribed to it in the Merchant Shipping Act; and

(f)

the term "writing" shall include any manner through

which words may be represented and read and includes

notices through electronic means.

1527. (1) The lease of an urban property, a residence or a

commercial tenement that is co-possessed by more than one person

shall always be made by all the co-possessors subject to the

provisions of article 1530.

(2) Should one of the co-possessors also occupy the co-

possessed property, if the parties agree that a contract of lease be

made, such an agreement shall be made by a contract in writing

between all co-possessors on the one hand and the occupier of the

t e n e m e n t on t h e o t her ; a nd t he re a f ter s uc h pe rs o n s h a l l be

considered to be a lessee, according to the terms and conditions of a

contract of lease, without losing his rights as a co-possessor

Provided that this sub-article shall be without prejudice to

the provisions of Title V of the Second Book, Part I of this Code.

(3) Should a co-possessor of an urban tenement, a residence or

a commercial tenement lease out such property without

authorization by a judgment of the Rent Board, or in the case of a

movable without authorization of the competent court, or without

the consent of the other co-possessors, such lease may at the

request of any one of the other co-possessors be declared null,

unless such request is made within two months from the date when

such other co-possessor would have obtained knowledge of such a

lease.

1528. (1) The Rent Board may, at the request made by means

of a n ap pl ic ati o n by o n e o f t he co -po ssesso rs o f t he u r ban

tenement, residence or commercial tenement, authorise the lease of

the urban tenement, residence or commercial tenement, where it is

shown that the tenement is suitable to be leased and that the

proposed lease is advantageous, and that it is not shown that any of

the other co-possessors has a just cause to oppose such lease

Provided that in the lease of movables all the provisions of

this sub-article shall apply, however the matter shall fall within the

competence of the courts of civil jurisdiction.

(2) The provisions of sub-article (1) shall also apply when any

one of the co-possessors is absent, and the Rent Board, in the case

of the lease of an urban tenement, a residence or a commercial

tenement (or the court in the case of the letting or hiring of

movables and other things, as the case may be), would not have

received any notice whether the absentee is still living, or as to his

whereabouts.

1529. The co-possessor who has, in general terms, given his

consent for the lease of the thing, or who, in spite of his opposition

the Rent Board or the court, as the case may be, has given, in

general terms, his authorization for the lease of the thing, may,

nevertheless, exercise the right of preference referred to in articles

1591, 1592 and 1593 unless he has in any manner waived such

right.

1530. (1) The letting made by a person possessing the thing

under entail or in usufruct or under any other temporary or

dissoluble title, shall be valid even in regard to his successors, if it

is made on fair conditions and for a term not exceeding eight years,

in the case of rural tenements, or four years, in the case of urban

tenements, or an ordinary period according to usage in the case of

movable property, or for any period, shorter than the said periods

respectively, in the case of property the letting of which for a

period exceeding such shorter period is prohibited.

(2) The letting made for any longer period by a person

possessing the thing as aforesaid shall, on the demand of his

successors in the possession of the thing, be reduced to the

reasonable period above-mentioned, to be reckoned from the date

of the contract.

1531. The provisions of the last preceding section in so far as

they restrict the duration of the lease shall not apply where a longer

period of lease has been covenanted with the authorization of the

competent authority according to law.

1531A.(1) With regard to the letting of an urban property, a

residence and a commercial tenement made after the 1st January,

2010, the contract of lease shall be made in writing and shall

stipulate

(a) the property to be leased;

(b) the agreed use of the property let;

(c) the period for which that property will be let;

(d) whether such lease may be extended and in what

manner;

(e) and also the amount of rent to be paid and the manner

in which such payment is to be made.

(2) In the absence of one or more of these essential

requirements, the contract shall be null.

(3) The lease of an urban property, a residence and a

commercial tenement made after the 1st January, 2010 shall be

regulated exclusively by the contract of lease and by the articles of

this Code

Provided that private residential leases shall be regulated by

the Private Residential Leases Act

1531AA. With regard to the letting of any private residential

lease entered into after the 1st January, 2020, the contract of lease

shall be made in writing and shall stipulate the conditions specified

under the Private Residential Leases Act, namely

(a) the tenement to be leased;

(b) the agreed use of the tenement let;

(c) the period for which that tenement shall be let;

(d) whether such lease may be extended and in what

manner;

(e) the amount of rent that shall be paid and the manner in

which such payment is to be made;

(f)

any amount deposited by the lessee by way of security,

for the performance of his obligations; and

(g) an inventory attesting the condition of the tenement as

well as the state of any furniture and domestic

appliances supplied by the lessor.

1531B. The contracts of lease made before the 1st June, 1995

shall be subject to the law as in force prior to the 1st June, 1995

1995. sohowever that from 1st January, 2010 articles 1531C, 1531D,

1531E, 1531H, 1531I, 1531J and 1531K of this Code shall apply.

1531C.(1) Without prejudice to the rights of the lessor in

accordance to article 4A of the Reletting of Urban Property

(Regulation) Ordinance and article 12B of the Housing (Decontrol)

Ordinance, the rent of a residence which has been in force before the

1st June, 1995 shall be subject to the law as in force prior to the 1st

June, 1995 sohowever that unless otherwise agreed upon in writing

after the 1st January, 2010, the rate of the rent as from the first

payment of rent due after the 1st January, 2010, shall, when this

was less than one hundred and eighty-five euro (€185) per year,

increase to such amount

Provided that where the rate of the lease was more than one

hundred eighty-five euro (€185) per year, this shall remain at such

higher rate as established.

(2) In any case the rate of the rent as stated in sub-article (1)

shall increase every three years by a proportion equal to the

increase in the index of inflation according to article 13 of the

Housing (Decontrol) Ordinance; the first increase shall be made on

the date of the first payment of rent due after the 1st January, 2013

Provided that where the lease on the 1st January, 2010 will

be more than one hundred eighty-five euro (€185) per year, and by

a contract in writing prior to 1st June, 1995 the parties would have

agreed upon a method of increase in rent, after 1st January, 2010

the increases in rent shall continue to be regulated in terms of that

agreement until such agreement remains in force.

1531D.(1) The rent of a commercial tenement, unless otherwise

agreed upon after 1st January, 2010 or agreed upon in writing prior

to the 1st June, 1995 with regards to a lease which would still be in

its original period on the 1st January, 2010, shall as from the date

of the first payment of rent due after the 1st January, 2010, be

increased be increased by a fixed rate of fifteen per cent over the

actual rent and shall continue to increase as from the date of the

first payment of rent due after the 1st January of each year by

fifteen per cent over the last rent between the 1st January, 2010 and

the 31st December, 2013.

(2) The rent as from the first payment of rent due after the 1st

January, 2014, is to be established by agreement between the

parties. In the event that such agreement is not reached, the

Property Market Value Index shall be considered as a guide to the

rent as may be established by regulations made by the Minister

responsible for accommodation and in t he absence of such

regulations, the rent shall from the first payment of rent due after

the 1st January, 2014, increase by five per cent per year until the

coming into force of the said regulations.

(3) In the case of a commercial tenement, if there was an

agreement between the parties for periodic rent increases, then such

agreement shall continue to apply without the increases

contemplated in this article

Provided that except in such cases where the increase in

rent has been effected following an agreement, where the increase

as proposed herebefore for commercial tenements is applied, the

tenant may by means of a judicial letter served on the lessor or on

one of the lessors, terminate the lease by giving him advance notice

of three months and this shall also apply if the lease is for a definite

period.

1531E. The external ordinary maintenance of a tenement leased

prior to 1st January, 2010, save unless otherwise agreed upon in

writing between the parties, shall be at the expense of the tenant

and not of the lessor.

1531F. Repealed by Act XXIV.2021.5.

1531G. Repealed by Act XXIV.2021.6.

1531H.(1) In the case of garages leased before the 1st June,

1995 that do not form part of a residence leased to a tenant as an

ordinary residence and which are not considered as a commercial

tenement, in the absence of an agreement to the contrary there shall

not be any right of renewal of the lease after 1st June, 2010.

(2) In the case of a tenement leased before the 1st June, 1995

and used as a summer residence which is not the ordinary residence

of the tenant, in the absence of an agreement to the contrary there

shall not be any right of renewal to the lease after 1st June, 2010

Provided that for the purposes of this Title no tenant shall

be deemed to hold more than one ordinary residence.

1531I. In the case of commercial premises leased prior to 1st

June, 1995, the tenant shall be considered to be the person who

occupies the tenement under a valid title of lease on the 1st June,

2008, as well as the spouse of such tenant, provided they are living

together and are not legally separated, and also in the event of the

death of the tenant, his heirs who are related by consanguinity or by

affinity up to the grade of cousins inclusively

Provided that a lease of commercial premises made before

the 1st June, 1995 shall in any case terminate within twenty years

which start running from the 1st June, 2008 unless a contract of

lease has been made stipulating a specific period. When a contract

of lease made prior to the 1st June, 1995 for a specific period and

which on the 1st January, 2010 the original period "di fermo" or "di

rispetto" is still running and such period of lease has not yet been

automatically extended by law, then in that case the period or

periods stipulated in the contract shall apply. A contract made prior

to the 1st June, 1995 and which is to be renewed automatically or at

the sole discretion of the tenant, shall be deemed as if it is not a

contract made for a specific period and shall as such terminate

within twenty years which start running from the 1st June, 2008.

1531J. (1) In the case of a tenement leased to an entity and used

as a club before the 1st June, 1995 including but not limited to a

musical, philanthropic, social, sport or political entity, when its

lease is for a specific period and on the 1st January, 2010 the

original period "di fermo" or "di rispetto" is still running and the

lease has not yet been automatically extended by law, then in that

case the period of lease established in the contract shall apply. In

all other instances where the contract of lease was made prior to the

1st June, 1995 the law and all definitions as in force on the 1st

June, 1995 shall continue to apply

Provided that notwithstanding the provisions of the law as

in force before the 1st June, 1995, the Minister responsible for

accommodation may from time to time make regulations to regulate

the conditions of lease of clubs so that a fair balance may be

reached between the rights of the lessor, of the tenant and the

public interest.

(2) The provisions of this sub-article and of the following sub-

articles shall, notwithstanding any other law, apply in respect of the

occupation of premises under title of lease by a club where all the

following conditions are satisfied

(i)

where the club consists of a band club which on the 1st

March, 2018 has been in existence for at least thirty

(30) years;

(ii) where the said band club has on the 1st March, 2018

occupied the same premises as its principal quarters

under a title of lease or emphyteusis or under a

combination of both for a period of at least thirty (30)

years;

(iii) where the band club is still in occupation of the

premises and the premises are the only premises of the

band club, except for stores and similar premises or

premises which are small and are not used as a club, on the

1st March, 2018; and

(iv) where the eviction of the band club has been ordered

by a final judgement of the Rent Board or of a Court

for a reason other than the failure to pay rent due.

(3) Where all the conditions listed in sub-article (2) are

satisfied, the club shall be entitled to continue occupying the

premises under a title of lease under the following conditions

(i)

for a rent which shall amount to ten (10) times the

amount of rent payable for the occupation of the said

premises prior to the final judgement of the Rent

Board or of the Court ordering eviction;

(ii) the rent referred to in sub-paragraph (i) shall not be

further increased in terms of regulation 2 of the

Conditions Regulating the Leases of Clubs

Regulations but the amount due to the owner in terms

of regulation 3 of the said regulations shall still be due

in addition to the rent;

(iii) the rent due in terms of sub-paragraph (i) shall not be

less than five thousand euro (€5,000) per annum or

amount to more than one (1) per cent of the value of

the premises on the 1st January 2018.

(4) The owner of premises to which sub-articles (2) and (3)

apply shall be entitled to apply to the Rent Board to contest the

fulfilment of any condition provided for in sub-article (2) or to

demand a variation in the conditions of the lease in order to make

good for any situation of manifest disproportionality which may

result from the application of sub-articles (2) and (3), due account

being taken of the social and cultural functions performed by the

band club

Provided that in considering whether there exists a situation of

manifest disproportionality the Board shall not base its considerations

on the potential of the premises for development for commercial use but

it shall consider the premises in its actual state.

(5) In any proceedings which may lead to the eviction from

premises owing to structural alterations made without the consent

of the lessor, when the premises from which the eviction is

demanded consist of the principal quarters of a band club, the Rent

Board or the Court shall not order the eviction from such premises

where the structural alterations consist of works related to the

philharmonic or social activities or to the activities performed by

the band club, and where the works consist of improvements to the

premises or of structural alterations to the premises and the band

club provides a guarantee which in the opinion of the Rent Board or

of the Court is sufficient to allow the lessor to restore the premises

and to make the reparations or alterations necessary in the premises

at the termination of the lease and to make good for any loss

suffered during the execution of the necessary works

Provided that the amount of the guarantee referred to in this

sub-article shall be established on the basis of the prices current at the

time of the judgement.

1531K. In the case of a property leased before the 1st June 1995

which is used both as a dwelling-house and as a commercial premises

and for which only one (1) rent is payable, this shall be considered as a

dwelling-house and it shall be regulated by the conditions which

concern dwelling-houses

Provided that with regard to the rate of the rent, the rent shall

be that established for a commercial premises as stipulated in this

Code or article 4A of the Reletting of Urban Property (Regulation)

Ordinance, whichever rent is higher..

1531L. With regard to leases which came into force on or after

the 1st June, 1995 such leases, both of a residential and of a

commercial tenement, and of urban property, shall continue to be

regulated by the same terms and conditions agreed upon between

the parties and by law as in force at the time.

1531M. With regard to leases made before the 1st June, 1995 of

tenements which are not residences or commercial tenements,

subject to the provisions of article 1531J relating to clubs, and

1995. subject to the provisions of article 1531H with regard to garages and

summer residences, the law and all definitions as were in force

before the 1st June, 1995 shall continue to apply

Provided that the Minister responsible for accommodation

may from time to time make regulations to regulate such leases so

that a fair balance may be reached between the rights of the lessor,

of the tenant and the public interest.

1532. (1) In the absence of an express agreement or of

circumstances tending to show the intention of the contracting

parties as to the duration of the lease, the following rules shall be

observed

(a) the letting of an urban tenement or of a movable shall

be deemed to be made for the period in respect of

which the rent has been calculated, that is, for one

year, if the rent has been agreed upon at so much a

year; for one month, if the rent has been agreed upon

at so much a month; for one day, if the rent has been

agreed upon at so much a day

Provided that if it is not made to appear that the rent

has been agreed upon by the year, the month or the

day, it shall be deemed to have been agreed upon

according to usage;

(b) the letting of a rural tenement shall be deemed to be

made: if the tenement is capable of producing fruits,

for the period which is necessary for the gathering of

the produce of four years; if the tenement is not

capable of producing fruits, for the period in respect of

which the rent is calculated, as is provided in the case

of urban tenements;

(c) if any particular usage is proved in regard to the

duration of the letting of certain things, such things

shall be deemed to be let out for the period fixed by

such usage.

(2) The provisions of sub-article (1) do not apply with regard to

the lease of urban, residential and commercial property made after

1st January, 2010

Provided that any private residential leases entered into after

the 1st January, 2020, shall be presumed to have been entered into for

a period of one (1) year, unless the parties agree to a short private

residential lease or the letting of shared residential space in accordance

with the Private Residential Leases Act.

1533. (1) The rent may be either in money or in kind, or even

in a portion of the fruits produced by the thing.

(2) Where it is not shown that the rent has been agreed upon as

payable in kind or in a portion of the fruits, it shall be deemed to

have been agreed upon as payable in money.

(3) The provisions of sub-article (2) do not apply with regard to

the lease of urban, residential and commercial property made after

the 1st January, 2010.

1534. (1) Where the contract has already commenced to be

carried into effect, the rent, in the absence of an express agreement,

or of any law fixing the amount thereof, shall be fixed at the current

valuation by experts

Provided that in case of occupation without title under the

Private Residential Leases Act, the rent shall be fixed in accordance

with the provisions contained in the said Act.

(2) The provisions of sub-article (1) do not apply with regard to

the lease of urban, residential and commercial property made after

the 1st January, 2010

Provided that in the case of occupation without title which are

in existence after 1st January, 2020, the rent shall be determined in

accordance with the Private Residential Leases Act.

1535. (1) Every payment in advance in respect of rent of rural

tenements is null, if any prejudice is caused thereby to the

hypothecary creditors of the lessor or to the persons succeeding to

the property under an entail, or to whom, in consequence of any

dissolution of his right, the property passes.

(2) Every payment in advance in respect of rent of an urban

tenement for more than six months is also null, if any prejudice as

aforesaid is caused thereby.

1536. (1) If, at the expiration of the lease, the lessee continues

and is suffered to continue in the enjoyment of the thing let to him,

the lease shall be deemed to be renewed on the same conditions and

with the same rights and duties, for a period to be regulated in

accordance with the provisions of article 1532, except as regards

rural tenements with respect to which the lease shall be deemed to

be renewed for the period which is necessary for the gathering of

the produce of one year

Provided that where the rent is payable in termly payments,

the lease, except as regards rural tenements, shall be deemed to be

renewed for a time corresponding to the period of one term only

Provided further that in case of private residential leases under the

Private Residential Leases Act, the lease shall be deemed to be

renewed in accordance with the said Act.

(2) The provisions of sub-article (1) do not apply with regard to

lease of urban, residential and commercial property entered into

after the 1st January 2010

Provided that private residential leases under the Private

Residential Leases Act shall be regulated in accordance with the said

Act.

1537. When the lessor has given notice to the lessee to surrender

the thing at the expiration of the lease, the lessee may not set up the

tacit renewal as provided in the last preceding article, even though

he has continued in the enjoyment of the thing.

1538. A suretyship in respect of a contract of lease shall not, in

any of the cases mentioned in the last two preceding articles,

extend to the obligations resulting from the renewal of the lease, or

the continued occupation of the thing unless the surety has

expressly bound himself for the whole time until the lessee

surrenders the thing.

§ I. OF THE R IGHTS AND O BLIGATIONS OF THE L ESSOR

1539. The lessor is bound, by the nature of the contract, and

without the necessity of any special agreement -

(a) to deliver to the lessee the thing let;

(b) to maintain the thing in a fit condition for the use for

which it has been let;

(c) to secure the lessee in the quiet enjoyment of the thing

during the continuance of the lease.

1540. (1) The lessor is bound to deliver the thing in a good

state of repair in every respect.

(2) During the continuance of the lease, the lessor is bound to

make all repairs which may become necessary, excluding, in the

case of buildings, the repairs mentioned in article 1556, if he has

not expressly bound himself to this effect.

(3) For the purposes of this Title with regard to an urban,

residential and commercial tenement, "structural repairs" shall be

deemed to be those relating to the structure of the building itself,

including the ceilings.

(4) When the lessor in the case of a residence leased prior to

the 1st June, 1995 carries out structural repairs which have become

necessary not due to his own fault, then the rent shall be increased

by six per cent of the costs incurred

Provided that where the structural repairs have not become

necessary due to a fault of the lessee, then the said lessee has the

right to terminate the lease even though the period of the lease has

not yet lapsed

Provided that in the cases where the lessor is willing to

carry out these repairs, the lessee may choose to carry out such

repairs at his expense, and in such an event the rent shall remain

unchanged; however the lessee shall in such case have no right for

any full or partial compensation for such structural repairs at the

termination of the lease.

1541. (1) If the lessor, on being required so to do by means of a

judicial act, fails to carry out the repairs to which he is bound, it

shall be competent to the lessee to request, by application,

authorization to carry out such repairs at the expense of the lessor,

under such condition s as the Adjudicating Panel for Private

Residential Leases, the Rent Board, or the Court or the Rural Leases

Control Board, as the case may be, may deem proper in the

circumstances.

(2) The lessee shall have the right to keep the rent due or the

rent which is still due to be paid, so that he will be paid back for

such expenses, subject to his rights for any greater amount, if the

amount of those expenses is more than such rent; in this case the

lessor has no right to increase the rent as mentioned in article

1540(4).

1542. The lessor is bound to make good to the lessee the damage

which the latter has sustained in consequence of the delay on the

part of the lessor in carrying out, on the intimation mentioned in the

last preceding article, the repairs to which he is bound.

1543. It shall be lawful for the lessee, without the necessity of

any proceedings, to carry out at the expense of the lessor the urgent

repairs; and, the omission or delay of which might cause to him

serious prejudice: and, in any such case, he may, for the purpose of

reimbursement, retain the rent as provided in article 1541

Provided that the lessee shall be bound to inform as soon as

possible the lessor about these circumstances and to deliver to him

a report by an expert as to the urgency of such repairs and their

estimated value and the prejudice which might result from such

delay

Provided also that the lessor shall be entitled to assume the

continuation of the repairs commenced under the provisions of this

article.

1544. If the repairs which the lessor is bound to carry out are

such that the omission thereof will prevent or considerably lessen

the enjoyment of the thing let, and the lessor fails to carry them out

within a time fixed by the Rent Board (or the court or the Rural

Leases Control Board as the case may be), the lessee may also

demand the dissolution of the contract, together with damages.

1545. (1) The lessor is bound to warrant the thing let against

the faults or defects which prevent or diminish the use thereof; and,

where the existence of such faults or defects is proved, the lessee

may demand at his option either the dissolution of the contract or

an abatement of the rent.

(2) The same rule shall apply even though such faults or

defects shall have arisen after the stipulation of the contract.

(3) The lessor, however, shall not be bound in respect of

apparent faults or defects which the lessee could have discovered

for himself at the time of the contract.

1546. If, in consequence of latent faults or defects existing in the

thing let at the time of the contract, the lessee suffers any damage,

the lessor, if he knew of such faults or defects, or had a reasonable

suspicion thereof, shall be liable in damages unless he shall have

made known to the lessee the existence, or his suspicion of the

existence, of such faults or defects.

1547. The lessor cannot, during the continuance of the lease,

change the form of the thing let, without the consent of the lessee.

1548. (1) If, during the continuance of the lease, the tenement

let requires urgent repairs which cannot be delayed until the

expiration of the lease, the lessee is bound to suffer the execution

of such repairs, whatever the inconvenience caused to him thereby,

even though, during such execution, he may be deprived of a part

of the tenement.

(2) Nevertheless, if the execution of such repairs takes more

than forty days, the rent shall be abated in proportion to the time

and to the part of the tenement of which the lessee is deprived.

1548A. During the running of the lease of an urban, residential or

commercial tenement, the lessor has right of access to the tenement

in such times and in such manner agreed upon with the tenant in

order that the lessor may fulfil his duties or to verify whether the

tenant is performing his obligations, as well as to show the

tenement to prospective buyers

Provided that in the absence of an agreement between the

parties, the Rent Regulation Board may, if need be, after hearing

the parties summarily, fix days, times and conditions, after an

application filed by the lessor for that purpose. The Board may give

a decree during the sitting or in the chambers without hearing the

parties. The decree shall be given within five working days from

the date when the tenant is served with a notice. The Rent Board

may order the inspection to be done under the supervision and in

th e pr e s e nc e of a c ou r t m a r s h a l . I n t hi s fu n c t io n, t he R e nt

Regulation Board shall also take into account the tenant’s right to

privacy and shall verify that no abuse is made of the lessor’s right

as provided in this sub-article. In such case, no appeal may be made

from the said decree.

1549. (1) In the case of an urban tenement destined for

habitation, if the repairs mentioned in the last preceding article are

such as to render uninhabitable for any period of time that part of

the tenement which is necessary for the habitation of the lessee and

his family, it shall be competent to the lessee according to

circumstances to demand the dissolution of the contract.

(2) The same rule shall apply in the case of movable property if

the repairs are such as to prevent the use of the thing for any period

of time.

1550. The lessor is not bound to warrant the lessee against the

molestations which third parties may, by mere acts, cause to him in

the enjoyment of the thing let, where such third parties do not claim

any right thereon, saving the right of the lessee to proceed against

them in his own name.

1551. (1) Where, on the contrary, the lessee is disturbed in the

enjoyment of the thing in consequence of an action touching a right

on the thing let, he may maintain an action for damages against the

lessor, if he is entirely deprived of the thing, or for a proportionate

abatement of the rent, if he is deprived of only a part of the thing,

or if a diminution of the enjoyment of the thing or an inconvenience

is caused to him.

(2) It shall, however, be competent to the lessee, even in the

latter case, to sue for the dissolution of the contract and for

damages, if the part of the thing which is left to him does not serve

the purpose for which he had taken the whole thing on lease.

1552. The provisions of the last preceding article in respect of

the liability for damages shall not apply -

(a) if the lessee fails to give notice to the lessor, without

delay, of the molestation, and the lessor is prejudiced

by such omission;

(b) if the cause of the action referred to in the last

preceding article, has only arisen after the stipulation

of the contract, and is not due to an act of the lessor;

(c) if, at the time of the contract, the lessee knew of the

right of the third party.

1553. If the third parties who have caused molestation by mere

acts claim any right on the thing let, or if an action is brought

against the lessee himself to compel him to surrender the thing, in

whole or in part, or to suffer the exercise of any easement, he is

bound to call upon the lessor to defend him, and he shall, if he so

demands, have the proceedings against him discontinued, upon

declaring the name of the lessor under whom he holds the thing.

§ II. O F THE R IGHTS AND O BLIGATIONS OF THE L ESSEE

1554. The lessee is bound -

(a) to make use of the thing let to him as a bonus

paterfamilias, and for the purpose stated in the

contract, or, in the absence of any agreement to that

effect, for such purpose as may be presumed according

to circumstances;

(b) to pay the rent agreed upon, or fixed in accordance

with the provisions established by law.

1555. If the lessee uses the thing leased for any purpose other

than that agreed upon by the parties, or as presumed in the previous

article, or in a manner which may prejudice the lessor, the lessor

may, according to circumstances, demand the dissolution of the

contract.

1555A.(1) In the case of a residential tenement, failure to use the

tenement for a period exceeding twelve months shall be deemed to

be bad use of the thing leased in terms of article 1555

Provided that when a person has failed to use the leased

tenement due to being temporarily absent from the tenement due to

work, study or health care, then such failure shall not be deemed to

be bad use.

(2) When the lessee of a lease which started before the 1st

June, 1995 is recovering in hospital or in an old people’s home, and

where such institution certifies or where it conclusively results that

the same tenant is permanently dependent on the institution, for the

purposes of the continuation of a lease according to the Reletting of

U r b a n P r o p e r t y ( R e g u l a t i o n ) O r d i n a n c e and the H o u s i n g

(Decontrol) Ordinance, the said permanent dependence shall have the

same effects as the death of the lessee.

(3) In the case of commercial premises, failure to use the said

tenement f or a com mercial purpo se in accordance with t he

provisions of a contract of lease shall be deemed to be bad use of

the thing leased in accordance with the provisions of article 1555.

(4) The provisions of article 1555 shall also apply in the case

of rural tenements, if the lessee abandons the cultivation thereof, or

does not cultivate the said tenement as a bonus paterfamilias, and

the lessor may thereby suffer prejudice in respect of which no

security was given to him.

(5) In any of the aforesaid cases, apart from those cases where

the lessee forfeits the lease due to his recovery in an institution, the

lessee shall also be liable to pay damages.

1556. The lessee of an urban tenement is responsible for all

repairs other than structural repairs

Provided that if such repairs are not carried out

appropriately and according to good workmanship the lessor shall

have the right to request the Rent Board to authorise him to carry

out such repairs at the expense of the lessee

Provided further that in those instances where new repair

obligations have been imposed on the lessee which were not

incumbent upon him before the 1st June, 2008 the failure by the

lessee to undertake such repairs before the 1st January, 2009 shall

not in any way expose the lessee to damages or any other form of

punitive measures such as an action for the termination of the lease.

1557. The lessee shall in no case be responsible for the repair of

damages caused by force majeure and without any fault of his own.

1558. The cleansing of cisterns and sinks, of cesspits and of

chimneys shall be at the charge of the lessee.

1559. Where the lessor and lessee have made a description of the

condition of the thing let, the lessee is bound to restore the thing in

the same condition in which he received it, according to the

description, except as regards that which may have perished or

deteriorated through age or irresistible force.

1560. Where no description of the condition of the thing let has

been made, it shall, in the absence of any proof to the contrary, be

presumed that the lessee received the thing in good condition.

1561. The lessee is liable for any deterioration or damage which

occurs during his enjoyment, unless he proves that such

deterioration or damage has occurred without any fault on his part.

1562. The lessee shall be liable for any damage caused by fire,

unless he proves that it occurred without any fault on his part, or on

the part of any of the persons mentioned in the next following

article, or through a fortuitous event, or an irresistible force, or

through a faulty construction, or that the fire was communicated

from a neighbouring tenement.

1563. The lessee is liable for any deterioration or damage caused

by any act or default of the members of his family, or of his

servants, guests, or sub-lessees.

1564. (1) The lessee may not, during the continuance of the

lease, make any alteration in the thing let without the consent of the

lessor, and he is not entitled to claim the value, whatever it may be,

of any improvement made without such consent.

(2) The lessee may, however, remove such improvements,

restoring the thing to the condition in which it was before they were

made, provided as regards improvements existing at the

termination of the lease, he shows that he can obtain some profit by

taking them away, and provided the lessor does not elect to keep

them and pay to the lessee a sum equal to the profit which, by

taking them away, the latter would obtain.

1565. The lessee is bound, under pain of paying damages, to give

notice to the lessor without delay of any encroachment or damage

affecting the thing let.

§ III. O F THE D ISSOLUTION OF THE L EASE

1566. Without prejudice to the provisions of articles 1531A to

1531M, a contract of letting and hiring ceases ipso jure on the

expiration of the term expressly agreed upon, and it shall not be

necessary for either of the contracting parties to give notice to the

other

Provided that private residential leases under the Private

Residential Leases Act, shall be regulated in accordance with the said

Act.

1567. With regard to rural tenements or movables, the contract

shall also cease ipso jure on the expiration of the term, even though

such term is presumed as provided in article 1532.

1568. With regard, however, to urban tenements, when the

duration of the lease is presumed as provided in article 1532, the

contract shall not cease on the expiration of the term unless either

of the parties gives notice to the other at least one month before, if

the presumed duration of the lease is for one year, or fifteen days

before, if such duration is for less than one year.

1569. (1) A contract of letting and hiring shall also be

dissolved ipso jure upon the fulfilment of a condition under which

the dissolution of the contract was expressly covenanted, saving

any action for damages which may be competent to the covenantee

according to law.

(2)

If the dissolution of the contract is covenanted in the event

of either of the parties failing to perform that which he has

promised, the dissolution shall take effect only from the day on

which the covenantee shall have, by means of a judicial act, given

notice to the covenantor of his intention to avail himself of the

covenant.

(3) In the cases referred to in this article, no time for clearing

the delay can be granted to the party in default.

1570. A contract of letting and hiring may also be dissolved,

even in the absence of a resolutive condition, where either of the

parties fails to perform his obligation; and in any such case the

party aggrieved by the non-performance may elect either to compel

the other party to perform the obligation if this is possible, or to

demand the dissolution of the contract together with damages for

non-performance

Provided that in the case of urban, residential and

commercial tenements where the lessee fails to pay punctually the

rent due, the contract may be terminated only after that the lessor

would have called upon the lessee by means of a judicial letter, and

the lessee notwithstanding such notification, fails to pay the said

rent within fifteen days from notification.

1571. (1) If, during the continuance of the lease, the thing let

is totally destroyed by a fortuitous event, the lease is ipso jure

dissolved; if it is destroyed only in part, the lessee may, according

to circumstances, demand either an abatement of the rent or the

dissolution of the contract.

(2) The lessee may also, according to circumstances, demand

an abatement of the rent or the dissolution of the contract, if owing

to a fortuitous event, the thing let has become unserviceable.

(3) No compensation may be claimed in any of the cases

mentioned in this article.

1572. Without prejudice to the provisions of articles 1531A to

1531M a contract of letting and hiring of a thing is not dissolved by

the death of the lessor or of the lessee.

1573. It shall not be lawful for the lessor to dissolve the contract

on the ground that he desires the house let for his own habitation,

unless the right to do so has been expressly stipulated, in which

case the lessor shall be bound to give notice to the lessee one month

before, if the remaining period of the lease is not less than one year,

or fifteen days before, if the remaining period of the lease is less

than one year

Provided that in the case of private residential leases in

accordance with the Private Residential Leases Act, the lessor shall

be bound to give notice to the lessee at least three (3) months before by

registered letter.

1574. If the lessor sells the thing let, or alienates it in any other

manner, the alienee cannot dissolve the lease, unless the lessor has

reserved to himself such power in the contract of lease.

1575. (1) The alienee of the thing let desiring to avail himself

of the power reserved in the contract respecting the dissolution of

the lease in case of sale or other alienation, is bound, unless

otherwise agreed upon in the contract, to give notice to the lessee,

one year before, in the case of rural tenements, and one month or

fifteen days before in accordance with the provisions of article

1573 in the case of urban tenements

Provided that in the case of private residential leases under

the Private Residential Leases Act, the lessor shall be bound to give

notice to the lessee at least three (3) months before by registered letter.

(2) In the case of movables, the notice to the lessee must be

given eight days before, or at least so many days before as

correspond to half of the remaining period of the lease.

1576. The buyer of a tenement subject to the right of redemption

cannot avail himself of the power to eject the lessee, until he shall

become irrevocably the owner of such tenement.

1576A. Repealed by XVII.2017.84.

1576B. Repealed by XVII.2017.84.

1576C. Repealed by XVII.2017.84.

1576D. Repealed by XVII.2017.84.

§ IV.O F S PECIAL R ULES AS TO L EASES OF RURAL T ENEMENTS

YIELDING F RUITS

1577. If the lease is made for two or more years and, during the

lease, there shall be lost, by any fortuitous event, the whole crop of

one year or at least so much of it that the value of the remaining

fruits, after deducting the value of the seeds and the expense of

gathering such fruits, shall not be equivalent to one-half of the rent

agreed upon, the lessee is entitled to demand, in the former case,

the re mission o f the whole rent, and, in the latte r case , an

abatement of the rent, corresponding to the difference between the

value of the remaining fruits and the amount of the said rent.

1578. In order to obtain the remission or abatement aforesaid,

the lessee must, during the time of the ripening of the fruits and

before the gathering thereof, demand, by sworn application, that

the loss be ascertained; in default of such demand he is debarred

from bringing in his claim.

1579. No remission or abatement of rent shall be allowed if on

striking a balance between any excess and deficiency in respect of

the previous years, there remains a profit sufficient to reduce the

loss sustained in the year mentioned in the demand to less than one-

half of the rent.

1580. If after striking such balance, the aforesaid loss is found to

be greater than one-half of the rent, and the lease is to continue for

another year or more, it shall be lawful for the court provisionally

to exempt the lessee from the payment of the rent in proportion to

the loss sustained.

1581. In such case, however, the issue of the remission or

abatement of rent shall not be definitely settled except at the

expiration of the lease, when another balance shall be struck of any

excess and deficiency in respect of the crops gathered during the

whole term of the lease, and no remission or abatement shall be

granted if on striking such balance there shall remain a profit

sufficient to reduce the loss sustained in the year mentioned in the

demand to less than one-half of the rent.

1582. If on striking the balance as provided in article 1579 no

remission or abatement of rent is found to be due, it shall not be

lawful for the lessee to renew the demand at the expiration of the

lease notwithstanding any deficiency in the following years; saving

his right to demand the remission or an abatement of the rent in

respect of each of such following years if there are sufficient

grounds for such demand.

1583. If, during the continuance of the lease, the lessor has

granted to the lessee the remission of the rent of one year, or an

abatement thereof, in consideration of the loss sustained in such

year, he may not demand the payment of the amount remitted, even

though on striking a balance as provided in article 1581 it shall

appear that the lessee during the years following such remission or

abatement has made a profit corresponding to or even exceeding

such loss, unless the lessor in granting the remission or abatement

shall have reserved to himself such right.

1584. Where the time of the lease does not exceed one year, the

lessee shall be equally entitled to a remission or an abatement of

the rent, in the event of the happening, during such year, of the

circumstances mentioned in article 1577.

1585. In no case may the lessee on account of any loss sustained

recover the rent paid by him, unless in paying such rent he shall

have reserved to himself such right, or unless he shall have paid the

rent in advance.

1586. The lessee has no right to the remission or an abatement of

the rent, if the loss of the fruits occurs after they have been

separated from the soil, unless the rent shall have been made to

consist in a share of the fruits in kind, in which case the lessor must

bear a proportionate part of the loss, provided the lessee was not in

default for delay in delivering to the lessor the latter’s share of the

fruits.

1587. Nor may the lessee demand the remission or an abatement

of the rent, if the cause of the loss existed and was known at the

time the lease was contracted.

1588. (1) The lessee may, by an express covenant, undertake

to bear any loss caused by fortuitous events.

(2) Any such covenant shall be deemed to apply only to

ordinary fortuitous events, such as hail, or the excessive abundance

or scarcity of rain.

(3) It shall not be deemed to extend to extraordinary fortuitous

events, unless the lessee shall have undertaken to bear all fortuitous

events, whether foreseen or unforeseen.

1589. The lease of a rural tenement is dissolved by the death of

the lessee if it is entered into on condition that the produce shall be

divided between lessor and lessee.

§ V.O F THE R IGHT OF P REFERENCE IN THE L EASE OF T HINGS

1590. The right of preference or of tenancy in respect of the

lease of things shall not be available, even with regard to property

of the Government of Malta, except in the cases laid down in any of

the articles following.

1591. Where two or more persons possess a thing in common,

each of them has a right of preference over strangers in respect of

the lease of such thing, on the same conditions offered by others.

1592. The said right cannot be exercised except by the co-

possessor himself, and it cannot be exercised by him after the thing

has been validly let to any other person.

1593. In the event of concurrent claims by two or more persons

having such right, it shall be lawful for any of them to demand that

the thing be let, upon an auction, to the highest bidder, and that

strangers be not admitted to bid.

1594. If there are no claims on the part of persons having a right

of preference on the ground mentioned in article 1591, a right of

preference, in regard to tenements, is granted -

(a) to the lessee in the last preceding lease of an urban

tenement, in respect of the new lease of the same

tenement;

(b) to the possessor or occupier of the upper part of a

building, in respect of the new lease of the lower part

of the same building, whether such lower part belongs

to the lessor of the upper part or to any other person,

and whether it has or has not access from the street

Provided that the right of preference granted under

this paragraph shall not apply in the case of any

building constructed or used as a common tenement

house or of any building consisting of flats which,

though having in common other parts of the building,

are constructed, leased, or occupied for use separately.

1595. (1) In the cases mentioned in the last preceding article,

the right of preference can be exercised in the manner and within

the times hereinafter stated, even after the new lease has been

agreed upon with others.

(2) Such right, however, is merely personal, and it may not be

transferred to other persons, nor shall it transmit to the heirs or

other successors of the person entitled thereto.

1596. A person vested with the right of preference for any of the

causes mentioned in article 1594 must, in order validly to exercise

such right, within fifteen days from the day on which he shall have

been notified by the lessor of the conditions offered by or agreed

upon with others, accept such conditions, and give, if

simultaneously with the aforesaid notification he is so required,

sufficient security for the performance of the said conditions where

such security is included in such conditions.

1597. (1) The notification of the conditions offered or agreed

upon, shall be made by the lessor by means of a judicial act calling

upon the person to be served therewith to declare, within the time

mentioned in the last preceding article, whether he intends to

accept such conditions, and warning him that, in default of

acceptance within the aforesaid time, his right of preference shall

lapse.

(2) Where the new lease is in writing, the lessor may, in the

aforesaid judicial act, state the conditions of such lease by a mere

reference to the writing, but in such case he must, if the writing is a

private writing, annex a copy thereof, or if the writing is a notarial

deed or a draft thereof, state in the said act the name, surname and

place of residence of the notary having such deed or draft.

1598. (1) If the party to be notified is absent from Malta, the

notification in his behalf may be made to any attorney of such

party, or to any other person charged by him with the custody of the

premises or of the keys thereof, or holding or occupying the

premises, under any title whatsoever, with his consent.

(2) In default of such attorney or person charged as aforesaid or

holder or occupier, the notification may be made by means of an

advertisement in the Government Gazette.

(3) In the cases referred to in this article, the time for accepting

the conditions is of one month.

1599. Notice of the acceptance of the conditions, together with

the production of security, where required, shall also be given to

the lessor by means of a judicial act.

1600. If in the cases mentioned in the last three preceding

articles the notification of the conditions or the acceptance thereof

is made otherwise than as prescribed in those articles, such

notification or acceptance shall be null.

1601. If the lessee possesses immovable property, he may offer,

as security, the hypothecation of such property in lieu of any other

security required by the lessor under the provisions of article 1596.

1602. If on production of the security within the time stated in

article 1596 the lessor, within fifteen days from the notification of

such production by means of a judicial act, rejects such security as

insufficient, the lessee may, within four days from the notification

of such act, demand, by sworn application, that the security

produced by him be declared sufficient and that his right of

preference be declared operative.

1603. If, on such sworn application, the lessee fails to establish

the sufficiency of the security, the Rent Board may, before giving

judgment, allow him a time not exceeding eight days within which

to produce a fresh security, and if such fresh security, whether

alone or together with the previous one, is not deemed by the Rent

Board as being sufficient, the Rent Board shall proceed to give

judgement on the aforesaid application, declaring the right of

preference as having lapsed.

1604. The times established in the last two preceding articles are

peremptory.

1605. (1) Notwithstanding the acceptance of the conditions of

the new lease, it shall be lawful for the party who had accepted

such conditions to demand, during the lease, the annulment of all

such conditions together with damages, if he proves any

misrepresentation or fraud to his prejudice in regard to any of such

conditions; and in such case the new lease shall remain operative

on the same conditions of the previous lease, at a rent to be fixed on

a v al u a t i o n b y e x p e r t s h a v i n g r e g a r d t o t h e c i r c u m s t a n c e s

prevailing at the time when the conditions so impeached were

accepted.

(2) The action for damages on the ground of misrepresentation

or fraud as aforesaid, may even be exercised within a year from the

dissolution of the new lease, but not after the expiration of such

year.

1606. No right of preference shall be competent in any of the

cases mentioned in article 1594, if the lease is granted for a time

not less than one year to a person related to the lessor by

consanguinity or affinity up to the degree of cousin inclusively; but

in case of misrepresentation or fraud, the party vested with the right

of preference may maintain an action for damages exercisable

within one year only, to be reckoned, in the case mentioned in

paragraph (a) of the said article, from the day on which the said

party shall have quitted the tenement in consequence of the said

lease, and, in the case mentioned in paragraph (b) of the same

article, from the date of the said lease.

1607. The right of preference granted under paragraph (a) of

article 1594 to the lessee in the last preceding lease, in respect of

the new lease of the same tenement, shall not be competent -

(a) if the lessee does not reside in Malta;

(b) if, at the time of the new lease, the lessee and his

family are, and have been since two years or more,

absent from Malta;

(c) if, in the case of an urban tenement, neither the lessee

nor any member of his family dwells in the premises,

or has dwelt therein during the last two years

preceding the new lease, and the premises are mainly

intended for habitation;

(d) if, previously to the new lease, the lessee has

surrendered or has been compelled to surrender the

tenement;

(e) if the lessee, during the preceding lease, was not

punctual in the payment of the rent for two or more

terms;

For the purposes of this paragraph, the lessee shall not

be deemed to have failed to be punctual, if the

payment of the rent is not delayed for more than

fifteen days from the day on which the lessor shall

have, even verbally, demanded such payment;

(f)

if the lessee has failed to perform or has contravened

any of the other obligations arising from the contract

of the last preceding lease; or has performed such

obligation only when compelled to do so by the Rent

Board;

(g) if the preceding lease was dissolved for any cause

other than that of the expiration of the time for which

it was to run;

(h) if the lessee, without the express consent of the lessor,

has wholly sub-let the tenement or assigned the lease

thereof, and the tenement, at the time of the new lease,

is occupied by the sub-lessee or assignee, even though

the lessee has not been restrained from sub-letting the

tenement or assigning the lease thereof

Provided that where the sub-lease or assignment of

the lease is in respect of a part of the tenement, the

right of preference shall cease in respect of that part

only; but the lessee shall also forfeit his right of

preference in respect of the part not sub-let or the lease

whereof is not assigned, if the lessor does not wish to

let the several parts of the tenement separately and the

lessee does not accept the new lease of the whole

tenement on the same conditions offered by or agreed

upon with others in respect of the whole tenement.

1608. The lessee may not set up his right of preference against

the demand for the surrender of the tenement, where such demand

i s a d m i ss i b l e , i f h e r e f u se s t o a c c e p t t h e n e w l e a s e o n t h e

condit ions proposed to him an d by the Rent Board deemed

reasonable, even though it is proved that the plaintiff intends to let

out the tenement to others on less onerous conditions.

1609. Nor may he set up his right of preference against the

aforesaid demand, where such demand is admissible, if the plaintiff

declares on oath that he does not intend to let out the tenement

before the lapse of one year to be reckoned from the day of the

demand, or that he does not intend to let out the tenement within

the said time on conditions less onerous than those which the

defendant shall have refused to accept, whatever such conditions

may be, and irrespective of any opinion of the Rent Board in regard

to such conditions

Provided that if the declarant shall, in violation of the terms of

any such declaration, let out the tenement, within the time

aforesaid, to persons other than those mentioned in article 1606, the

party who has surrendered the tenement in consequence of such

declaration, may maintain against the declarant an action for

damages, exercisable within one year from the day on which the

tenement shall have been so let out.

1610. The right of preference granted under paragraph (b) of

article 1594 to the possessor or occupier of the upper part of a

building in respect of the new lease of the lower part of the same

building shall not be competent -

(a) if the possessor or occupier of the upper part does not

make use thereof for his own habitation or that of his

family;

(b) if the new lease of the lower part is claimed by the

lessee himself who enjoyed the last preceding lease, in

virtue of the right of preference granted under

paragraph (a) of article 1594.

1611. Where two or more possessors or occupiers of several

upper parts of a building claim the new lease of the lower part,

preference shall be given to the possessor or occupier of the part of

the building immediately overlying the part to be let out.

1612. If the lower part immediately underlies the parts of the

same building, possessed or occupied by the competitors claiming

the new lease, preference shall be given to the possessor or

occupier whose part overlies the lower part to a greater extent; and

if such upper parts overlie the lower part to the same extent, the

lessor may grant the lease to any one of the competing claimants

whom he prefers.

§ VI. O F S UB-LETTING

1613. (1) In the absence of other special provisions, the contract

of subletting is regulated by the same provisions which regulate the

contract of letting and hiring

Provided that in the case of the sub-letting of commercial

tenements before the 1st June, 1995, these shall be terminated on

the 31st May, 2018 subject to the provisions of this article unless

done by agreement with the lessor, in which case such sub-lettings

shall be regulated by such agreement

Provided further that the lease shall be established

according to that laid down in article 1513D.

(2) In the absence of an agreement between the lessee and the

person who is the sub-lessee before the 31st May, 2018 who has an

interest in remaining in the tenement in case of a sub-lease that

expires on the 31st May, 2018, where the sub-leased tenement

consists of commercial premises which in the year preceding the

31st May, 2018 is managed by the sub-lessee, the person who

before the 31st May, 2018 was the sub-lessee shall have the right to

continue managing his business from the tenement, under those

conditions as may be determined by the Rent Regulation Board, for

such period as may be established by the Board which shall not be

longer than the period of the lease or be more than ten years,

whichever is the shorter.

(3) A request for the sub-lessee to continue managing his

business from the leased tenement shall be made by means of an

application filed before the Rent Regulation Board by not later than

the 31st May, 2018 and that application shall contain the reasons

for which it is made. The Board shall not accede to the request

unless the applicant satisfies the Board that he will suffer serious

prejudice if he does not continue to manage his business from the

tenement.

(4) The application made by the sub-lessee in accordance with

sub-article (3) shall be notified to the owner and the lessee who

shall have the right to oppose the request.

(5) The hearing of the application referred to in sub-articles (3)

and (4) shall be regulated by the rules of procedure applicable to

applications filed before the Rent Regulation Board, without

prejudice to the Board’s right, at any stage of the proceedings, to

establish or change the amount of compensation which the person

who was the sub-lessee before the 31st May, 2018 is obliged to pay

to the owner or to the lessee or both while the proceedings are

pending. There will be no right of appeal from the decree

establishing the said compensation.

(6) If the Board accedes to the request for the applicant to

continue managing his business from the premises, as previously

laid down in this article, the Board shall establish the rent for the

p e r i o d a f t e r t h e 3 1 s t M a y, 2 0 1 8 a t a n a m o u n t w h i c h i s i n

accordance with the value that the tenement could fetch if this were

to be leased on the market by its owner for the use that was being

made thereof during the year immediately preceding the 31st May,

2018. The Board shall also have the power to order the payment of

rent below the said market value if it is proven to the satisfaction of

the Board that the payment of the said market value would impose

harsh consequences on the person managing his business from the

tenement, in a way that would prejudice that person’s living or that

of persons working in the tenement.

If the Board decides that the payment of rent shall be below

the said market value, the Board shall also order in its decision that

the rent should be increased every year until it reaches the said

market value by not later than the first expiry of rent due in the year

2027. (7) When the Board establishes a new rent in accordance with

this article, it shall have the power to establish that such rent shall

be divided among the persons having a right over the tenement and

particularly between the owner of the tenement and the person

having another title of tenancy over the premises and the manner in

which such lease is to be divided.

(8) When the rent that must be paid by the person who was the

sub-lessee before the 31st May, 2018 is established in a final manner,

that rent must be paid as from the 1st June, 2018 in a way that any

compensation paid according to sub-article (5) shall be deducted from

the amount of arrears due.

1614. (1) The lessee is not entitled to sub-let a thing or to

assign its lease, unless such right was agreed upon in the contract.

(2) For the purposes of this Sub-title, a management agreement

or any other form of agreement, by means of which a lessee

transfers to third parties the possession of the tenement or of the

business operated from the commercial tenement shall be

considered as sub-letting.

(3) Where the lessee is a limited liability company or any other

form of company, the cumulattive inter vivos transfer of fifty per

cent of the shareholding, even if carried out by means of more than

one transfer and, or the transfer of the actual controlling power of

the administration of such company or of the control of the

business conducted from the tenement shall be considered as a sub-

lease

Provided that such a transfer shall not be considered as a

sublease if the transfer was made to any one of the spouses who are

not legally separated and, or to the children of the shareholder.

1615. (1) The lessee may house third parties in parts of the

residential property against payment unless this is expressly

forbidden in the contract and subject to the provisions of article

1555. (2) The lessee shall also be entitled to accept other persons to

dwell with him against payment of part of the rent, or against any

other consideration, unless such right has not been expressly

forbidden by the contract.

1616. A lessee who cultivates land under a covenant of sharing

the produce with the lessor, cannot sub-let or assign the lease,

unless such power has been expressly granted to him by the lessor.

1617. Nor may the occupier of a part of an urban tenement, not

separated from other parts of the same tenement, or having access

by the same entrance as other parts of the same tenement, sub-let or

assign the lease, without the consent of the lessor.

1618. Notwithstanding that the power to sub-let or to assign the

lease has not been excluded and also where it has been agreed

upon, the lessor shall have the right to recover possession of the

premises, if such premises are sub-let or the lease thereof is

assigned to any person using, causing or suffering the same to be

used for purposes of prostitution or for other immoral purposes.

1619. The lessor may enforce his rights for rent, compensation

for non-repairs, or in connection with any other covenant of the

lease, on the fruits and on the value of all things which serve for the

furnishing or stocking, or for the cultivation of the tenement, even

though such fruits or other things belong to the sub-lessee, and the

latter has discharged his liabilities towards his sub-lessor

Provided that such rights shall not be available to the lessor in

respect of the said things if the same belong to or are held by or on

behalf of any department of the Government of Malta in any case in

which such department is not itself directly liable for the payment

of the debt.

1620. The sub-lessee may not claim against the lessor any of the

rights competent to the lessee.

1621. The provisions of the last two preceding articles shall also

apply in cases where the lessee has not been restrained from sub-

letting or from assigning the lease, or has been expressly allowed to

do so, unless the lessor has expressly released the lessee from his

obligations or has expressly acknowledged the sub-lessee instead

of the lessee.

1622. (1) The right of preference referred to in article 1591,

shall also apply in the case of the sub-letting of a thing held in

common by several lessees.

(2) The right of preference granted under paragraph (a) of

article 1594 is also competent to the sub-lessee in respect of the

new sub-lease of the premises; but the right of preference granted

under paragraph (b) of the said article is competent to the sub-

lessee only in cases where the lower part of the building is sub-let

by the person who had sub-let the upper part to the said sub-lessee.

(3) The provisions of articles 1596 to 1610, inclusively, shall

apply in all the cases referred to in this article.

CIVIL CODE

1622A. The Minister responsible for accommodation following

consultation with the Minister responsible for finance may make

regulations for all or any of the following purposes

(a) to draw up a model contract of lease that may be used

by the parties concerned;

(b) to enable the proper implementation of the provisions

of this Title and to implement such necessary measures

to give it full effect and to allow for its proper

administration, including Board procedures;

(c) to create a registry for the deposit or registration and,

or de-registration of contracts of letting for any

purpose which the Minister may establish, including

for the purpose of the validity itself of the same

contracts, and to do all that is necessary for this

purpose;

(d) to create a structure establishing and administering the

Market Property Value Index;

(e) to establish criteria for a means test for the purposes

stipulated in article 4A of the Reletting of Urban

Property (Regulation) Ordinance and article 12B of the

Housing (Decontrol) Ordinance;

(f)

to establish regulations and criteria for the purpose of

articles 1531J and 1531M;

(g) to extend the application of the provisions of this Code

regarding the lease or part of it with regards to cases

where a person has been accommodated in a residence

under the Housing Act, or where a public authority has

taken possession of a residence in terms of the Land

Acquisition (Public Purposes) Ordinance, or under any

other law which is or has been in force from time to

time;

(h) to provide transitory arrangements in the case of

removal of requisition orders issued according to the

Housing Act;

(i) to provide for the removal or modification of any

transitory provisions contained in the Condominium

Act;

(j)

to provide with respect to any thing about which he

may make regulations in terms of the provisions of this

Title.

Sub-title II

O F THE L ETTING OF W ORK AND I NDUSTRY

1623. A contract of letting of work and industry is a contract

whereby one of the contracting parties binds himself to do some

thing for the other, for a reward which the latter binds himself to

pay to the former.

1624. Where the reward is not fixed in the agreement, or by law

or custom, it shall be fixed by the court, upon a valuation by

e x p e r t s o r, e v e n w i t h o u t s u c h v a l u a t i o n , a c c o r d i n g t o

circumstances.

1625. (1) Any agreement for work or services prohibited by

law or contrary to morality, is void.

(2) The performance or execution of such work or services

gives no action for remuneration.

1626. The following are contracts of letting of work and

industry

(a) that of a domestic servant, worker or other employee

who binds himself to work in the service of another; *

(b) that of carriers who undertake the carriage by land or

water, of persons or things;

(c) that of persons undertaking contracts of works.

1627. The provisions of articles 1569 and 1570 shall also apply

in the case of contracts of letting and hiring of work and industry,

saving the special provisions respecting such contracts.

1627A. No person may take any discriminatory action or

sanction against any of his officers, employees or agents on the

grounds that such officers or employees, having reasonable grounds

to suspect corruption reported in good faith their suspicion to

responsible persons or authorities, and any person who may have

been the victim of such discriminatory action or sanction shall,

without prejudice to any other right under any other law, have a

right to compensation for any damage caused to him by such

discriminatory action or sanction.

§ I. O F C ARRIERS BY L AND OR W ATER

1628. Carriers by land or water are, in respect of the custody and

preservation of the things entrusted to them, subject to the same

liabilities as depositaries.

1629. They are responsible not only for the things which they

have received in their vehicle or boat or other vessel, but also for

the things delivered to them in any place to be put in the vehicle, or

*Until 1952 , this contract was regulated by the provisions contained in §I "Of the

Hiring of Domestic Servants , Workmen and other Employees" , of this sub-title. These

provisions were repealed by Act XI of 1952.

boat or other vessel, or to be carried in any other manner.

1630. They are liable for the loss of or injury to the things

entrusted to them, unless they prove that such loss or injury was

caused by a fortuitous event or irresistible force and without any

fault on their part.

1631. The carriage by water referred to in this Code, is the

carriage, by boat or other sea vessel, within the limits of Malta, that

is: from one island to the other, or from one part of an island to

another part of the same island.

1632. Nothing in this Code shall affect the provisions of the

Code of Police Laws.

§ II. O F C ONTRACT OF W ORKS OR LOCATIO OPERIS

1633. In a contract to execute a certain work it can be agreed that

the person undertaking the work shall bestow only his labour or

skill, or that he shall also supply the materials.

1634. If, where the artificer supplies the materials, the thing in

any manner perishes before it is delivered, the loss is borne by him,

unless the employer has been in default for delay in the receipt of

the thing.

1635. If, where the artificer bestows only his labour or skill, the

thing perishes, he is only liable for his fault.

1636. In the case mentioned in the last preceding article, if the

thing perishes, even though without fault on the part of the artificer,

before the work has been delivered, and without there being any

default for delay on the part of the employer in examining it, the

artificer shall no longer be entitled to claim the reward, unless the

thing has perished owing to a defect in the materials.

1637. (1) In the case of a work consisting of several pieces or

which is done by measure, the work shall remain at the risk of the

artificer until the employer has examined the whole work, unless it

has been agreed that the examination of each piece shall take place

as soon as each piece is completed.

(2) All the pieces of the work paid for are presumed to have

been examined, if the employer pays the artificer in proportion to

the work performed.

(3) Such presumption, however, shall not arise, if the

payments, although stipulated, or effected on the completion of one

or more pieces of the work, are made on account of the whole work

and without any appropriation to any particular piece of such work.

1638. (1) If a building or other considerable stone work

erected under a building contract shall, in the course of fifteen

years from the day on which the construction of the same was

completed, perish, wholly or in part, or be in manifest danger of

falling to ruin, owing to a defect in the construction, or even owing

to some defect in the ground, the architect and the contractor shall

be responsible therefor.

(2) The relative action for damages must be brought within two

years from the day on which any of the said cases shall have

occurred.

1639. A contractor who has undertaken the construction of a

building or other considerable work, according to a plan

determined and agreed upon between him and the employer, cannot

claim any increase in the price, on the ground of an increase in the

rate of wages or the cost of the materials, or on the ground of

deviations from or additions to the plan, which are not onerous to

the contractor.

1640. (1) It shall be lawful for the employer to dissolve the

contract, even though the work has been commenced.

(2) If the employer has no valid reason for the dissolution, he is

to compensate the contractor for all his expenses and work and to

pay him a sum to be fixed by the court, according to circumstances,

but not exceeding the profits which the contractor could have made

by the contract.

(3) If the employer has valid reason for the dissolution, he is to

pay the contractor only such sum which shall not exceed the

expenses and work of the contractor, after taking into consideration

the usefulness of such expenses and work to the employer as well

as any damages which he may have suffered.

(4) Any advance made to the contractor before the dissolution

of the contract shall be applied to the sums due in terms of sub-

article (2) or (3) of this article and the contractor shall return any

resulting excess to the employer.

(5) The contract shall be immediately dissolved when the

employer informs the contractor, by any means whatsoever, of his

decision to dissolve the contract, and this without the need of any

authorisation or confirmation by any court.

1641. (1) A contract of works or locatio operis is dissolved by

the death of the artificer, the architect or the contractor.

(2) The employer, however, is bound to pay to the heirs of the

artificer, architect or contractor, in proportion to the price agreed

upon, the value of the work done and of the materials prepared, but

only if such work and materials may be useful to him.

1642. The contractor is responsible for the acts of the persons

employed by him.

1643. Masons, carpenters and other artificers employed in the

construction of a building or other work undertaken in pursuance of

a contract of works, have no action against the person for whose

benefit the work has been performed, except to the extent of such

amount as may be due by such person to the contractor at the time

their action is instituted.

Title X

O F C ONTRACTS OF P ARTNERSHIP

G ENERAL P ROVISIONS

1644. Partnership is a contract whereby two or more persons

agree to place a thing in common, with a view to sharing the benefit

which may derive therefrom.

1645. (1) Every partnership must have a lawful object, and

must be contracted for the common interest of the parties.

(2) Every partner must contribute either money or other

property, or his skill.

1646. (1) Every agreement by which one of the partners is to

contribute the ownership or enjoyment of property which may in

future come to him by succession or donation, is void.

(2) A contract containing such a provision may be wholly

annulled, upon the demand of any of the other partners.

1647. The provisions of this Title do not apply to commercial

partnerships except as provided by the Commercial Partnerships

Ordinance * .

Sub-title I

O F THE D IFFERENT K INDS OF P ARTNERSHIP

1648. A general partnership of all the property of the partners,

although it refers to present property only, is void.

1649. (1) A general partnership of profits is permitted: any

such partnership shall only include all that which the parties shall

acquire by their skill, under any title whatsoever, during the

continuance of the partnership, and the use of the movable or

immovable property intended for the exercise of the trade or

profession of the partner possessing such property.

(2) The partnership referred to in this article, unless made by a

public deed, is null.

1650. A particular partnership is a partnership having for its

object certain specified things, or the use thereof, or the fruits

which may be derived therefrom, or a specified undertaking, or the

exercise of some trade or profession.

*Repealed by Act XXV of 1995. See the Companies Act (Chapter 386).

1651. (1) A contract of partnership whereby any one of the

partners binds himself to contribute the ownership of immovable

property is void so far as regards the obligation of contributing the

ownership of such property, unless it is made by a public deed.

(2) The provisions of sub-article (2) of article 1646 shall also

apply to any such contract.

1652. Where a partner has validly bound himself to transfer to

the partnership the ownership of the property which he is to

contribute, the provisions of articles 994, 995 and 996, shall apply

with respect to the transfer of such property.

Sub-title II

O F THE O BLIGATIONS OF P ARTNERS AS BETWEEN THEMSELVES

1653. A partnership commences from the moment the contract is

made, unless another time is fixed.

1654. (1) Any stipulation whereby a partnership is to last for

ever or during the whole life of any one of the partners, is void.

(2) A contract of partnership containing any such stipulation

shall be deemed to have been entered into for an undefined time.

1655. If the partnership has for its object an undertaking having

a limited duration, it shall be deemed to have been contracted for

the whole time for which such undertaking is to last.

1656. (1) Every partner owes the partnership all that which he

has promised to contribute thereto.

(2) Where this contribution consists of a specific thing of

which the partnership has suffered eviction, the partner making

such contribution is accountable therefor in the same manner as a

seller is to the buyer in case of eviction.

1657. (1) The partner who has agreed to contribute a sum of

money to the partnership and has failed to do so, becomes ipso jure

a debtor in the interest on such sum as from the day on which such

sum was payable by him.

(2) The same rule shall apply in regard to sums which a partner

has taken from the funds of the partnership for his own private

advantage, the interest on such sums to run from the day on which

he shall have so taken them.

(3) Nothing in this article shall affect the right of the

partnership to bring an action, where competent, for further

damages against such partner even though he has not been put in

default.

1658. A partner who has taken money from the partnership funds

is presumed, unless he is the manager of the partnership, to have

taken it for his own private advantage, saving any proof to the

contrary.

1659. The partners who have agreed to contribute their skill to

the partnership are bound to render an account of all the profits

made by the exercise of such skill as forms the object of the

partnership.

1660. Where a party who is charged with the management is

himself a separate creditor, in a sum fallen due, of a person who

also owes to the partnership a sum likewise, fallen due, any

payment received by such part ner from the debtor sh all be

appropriated to the debt due to the partnership and to the debt due

to himself, in proportion to the two debts, even though in giving

receipt he had appropriated the payment entirely to his own private

debt.

1661. (1) The provisions of the last preceding article shall not

apply where the debt due to the partner is such that, according to

the rules laid down in paragraphs (c), (d), (e) and (f) of article 1171

it enjoys preference over that due to the partnership and the

payment has been expressly appropriated to the debt due to the

partner.

(2) In all cases, however, if the partner declares in the receipt

that the payment will be appropriated entirely to the debt due to the

partnership, it shall not be lawful for him to demand that payment

be appropriated, wholly or in part, to the debt due to him.

1662. Where one of the partners has received a share of a

common debt, he shall, if the debtor becomes insolvent, be bound

to contribute to the common stock the share received by him even

though in receiving payment, he had expressly given release for his

share of the debt.

1663. Each partner is liable towards the partnership for any

damage caused to the same through his fault, and he may not set off

against such damage the profits derived by the partnership from the

exercise of his skill in other affairs.

1664. (1) Where the things of which the enjoyment only has

been brought into the partnership are certain and specified objects

which are not consumed by use, they remain at the risk of the

partner who is the owner thereof.

(2) If such things are consumed by use, or are such as cannot be

preserved without deteriorating, or were intended to be sold, or

were brought into the partnership upon a valuation, they remain at

the risk of the partnership.

(3) Where the thing has been appraised, the partner may only

recover the amount of the valuation.

1665. A partner may maintain an action against the partnership,

not only for the recovery of sums which he has disbursed on

account of the partnership, together with interest, but also in

respect of any obligations which he has contracted in good faith in

the affairs of the p artnership as we ll as i n respect of risks

inseparable from his management.

1666. (1) Where the contract of partnership does not fix the

share of each partner in the profits or losses, such share shall be in

proportion to each partner ’s contribution to the assets of the

partnership.

(2) With regard to a partner who has only contributed his skill,

his share in the profits or losses shall be regulated in the same

manner as the share of the partner who has contributed to the

partnership the least sum or portion.

1667. (1) Where the partners have agreed to refer the

determination of such shares to the decision of one of them or of a

third party, such decision may not be impeached unless it is

manifestly contrary to equity.

(2) It may not be impeached, even in such case, if more than

three months have elapsed from the day on which the partner who

deems himself aggrieved by such decision has had notice thereof or

if he himself has commenced to give execution to such decision.

(3) If the party to whose decision the partners have agreed to

refer is unwilling or unable to fix the shares or fails to fix such

shares within the time agreed upon by the parties or, in the absence

of an agreement, within the time of one month, the partnership is

null.

1668. (1) Any agreement whereby one of the partners is to

have the whole of the profits is null.

(2) Any agreement whereby the capitals or things brought into

the partnership by one or more of the partners are to be exempt

from any contribution to losses is likewise null.

1669. Unless it has been otherwise agreed or unless it is

otherwise provided in this Code, the rights, powers and obligations

of any partner charged with the management of the partnership are

governed by the provisions relating to the rights, powers and

obligations of a mandatary.

1670. (1) The partner having the management of the

partnership under a special covenant in the contract of partnership

may, notwithstanding the opposition of the other partners, perform

all such acts as appertain to the management with which he is

charged, provided he acts without fraud.

(2) Such power may not be revoked without sufficient cause

during the continuance of the partnership; but if such power has

been given by any instrument subsequent to the contract of

partnership it is revocable in the same manner as an ordinary

mandate.

1671. Where several partners are charged with the management

of the partnership, without their respective duties being specified,

or without it being stated that one of them cannot act without the

other, each of them may perform separately all acts appertaining to

such management.

1672. Where it has been stipulated that one of the managing

partners cannot do anything without the other, one of them alone

cannot act without the other without a new agreement, even though

CIVIL CODE

the latter be in the actual impossibility of taking part in the acts of

management, unless the matter is urgent and such that if the act is

omitted a serious and irreparable loss to the partnership might

ensue.

1673. In the absence of special stipulations as to the mode of

management, the following rules shall be observed

(a) the partners are presumed to have mutually given to

each other the power to manage, the one for the other;

and whatever is performed by each of them is valid

even as regards the shares of the other partners,

although their consent shall not have been obtained;

(b) if the partners are not more than two, each of them

may oppose the transaction before it is concluded,

saving the right of the other partner to demand the

dissolution of the partnership, together with damages,

where the opposition is vexatious, or contrary to the

object of the partnership, or otherwise seriously

prejudicial to the interests of the partnership;

(c) if the partners are more than two, in case of

opposition, the opinion of the majority will prevail,

regard being had to the number of all the partners, or,

where the decision takes place at a meeting fixed by

agreement, or at a meeting at which all the partners

shall have been requested to attend, to the number of

the partners present at the meeting

Provided that where the decision of the majority is

vexatious, or contrary to the object of the partnership,

or calculated to give execution to acts not naturally

included in the object of the partnership, or otherwise

seriously prejudicial to the interests of the partnership,

it shall be lawful for the dissenting partner to demand

the dissolution of the partnership, together with

damages;

(d) each partner may make use of the things belonging to

the partnership, provided he uses them for the purpose

for which by custom they are intended, and does not

use them against the interests of the partnership, or in

such a manner as to prevent his partners from using

them according to their rights;

(e) each partner has the right to compel the other partners

to bear with him the expenses which are necessary for

the preservation of the property of the partnership;

(f)

one of the partners cannot make any alterations in the

immovable property of the partnership, even though he

claims that such alterations are advantageous to the

partnership, unless the other partners consent thereto.

1674. A partner who is not a manager cannot alienate or

encumber the partnership property, even though such property be

movable.

1675. Each partner may, without the consent of his other

partners, associate with himself a third party in his share in the

partnership; but he cannot, without their consent, introduce such

third party into the partnership, even if he has the management

thereof.

Sub-title III

O F THE O BLIGATIONS OF P ARTNERS TOWARDS T HIRD P ARTIES

1676. The partners are not jointly and severally liable for the

partnership debts; and one of the partners cannot bind the others,

unless they have given him power to that effect.

1677. The partners are liable to the creditors with whom they

have contracted, each one for an equal sum and share, even if the

share of one of them in the partnership is smaller, unless the

c o n t r a c t h a s ex p r e s s l y l i m i t e d t h e l i a b i l i t y o f t h e l a t t e r i n

proportion to his share.

1678. (1) A stipulation to the effect that an obligation is

contracted on account of the partnership, binds only the contracting

partner and not the others, unless the latter have given him

authority to do so or unless the matter has benefited the

partnership.

(2) A partner contracting in his own name does not bind his

other partners, even though the matter has benefited the

partnership, saving any action competent to the persons contracting

with him, under the provisions of article 1143.

Sub-title IV

O F THE D ISSOLUTION OF P ARTNERSHIP

1679. A partnership terminates -

(a) by the expiration of the time for which it was entered

into;

(b) by the extinction of the partnership property, or by the

completion of the undertaking for which it was entered

into;

(c) by the death of any partner;

(d) by the inhibition, whether general or special, of any

one of the partners from entering into contracts, or by

his insolvency or bankruptcy;

(e) by the declaration of any one of the partners that he

does not wish to continue the partnership.

1680. (1) Where one of the partners has promised to bring into

the partnership the ownership of a thing and such thing perishes

before the partnership has acquired the ownership thereof, the

partnership is dissolved with respect to all the partners.

(2) The partnership, however, is not dissolved, if the loss of the

thing happens after the partnership has acquired the ownership

thereof.

1681. Where one of the partners has promised to bring into the

partnership the enjoyment of a thing, the loss of the thing produces

the dissolution of the partnership, even though the loss happens

after the partnership has commenced to enjoy the thing.

1682. (1) It may be stipulated that in case of the death of one

of the partners, the partnership shall continue with his heir, or only

between the surviving partners.

(2) In the latter case, the heir of the deceased is only entitled to

a partition of the partnership property having regard to the state of

the partnership at the time of the partner’s death, and he shall not

be entitled to participate in any subsequent right, except in so far as

such right is the necessary consequence of transactions made

before the death of the partner from whom he inherits.

1683. The dissolution of a partnership at the will of one of the

partners may only take place if the partnership is entered into for an

undefined time, and it is effected by a renunciation, notice whereof

is given to all the other partners, provided such renunciation is

made in good faith and not at an inopportune moment.

1684. (1) A renunciation is not in good faith, when the partner

renounces for the purpose of appropriating to himself alone the

profits which the partners expected to earn jointly.

(2) It is made at an inopportune moment, when things are no

longer in their entirety, and the interest of the partnership requires

that its dissolution be postponed.

1685. Any agreement whereby any one of the partners is

deprived of the power to demand the dissolution of a partnership

entered into for an undefined time, is void.

1686. Nevertheless, an agreement is valid whereby the partners

reserve to themselves the power to oppose the dissolution

demanded by any of them, by releasing him from all his

engagements towards the partnership or towards third parties, and

paying to him a fixed sum, or the amount of his shares, if the

partnership is divided into shares.

1687. The dissolution of a partnership entered into for a fixed

time cannot be demanded before the expiration of such time, unless

there be a just cause, such as when one of the partners fails to fulfil

his engagements, or a habitual infirmity unfits him for the business

of the partnership, or other sim ilar causes the justness and

importance of which are left to the discretion of the court.

1688. The rules respecting partitions of common property are

also applicable to partitions between partners, and to the effects

thereof.

Title XI

O F THE C ONSTITUTION OF A NNUITIES

1689. An annuity, or a yearly payment in money or in goods,

may be stipulated by the assignment of a movable or an immovable

thing or by the payment of a sum of money of which the payer

binds himself not to claim the return.

1690. A contract creating an annuity is null if it is not made in

writing, or, where an immovable thing is assigned, if it is not made

by a public deed.

1691. The assignment of an immovable thing as provided in

article 1689 conveys to the assignee the ownership of the thing

assigned notwithstanding any stipulation to the contrary, even that

whereby the ownership is reserved, saving always the provisions of

article 996.

1692. An annuity may be perpetual or for life.

1693. The laws relating to the so called rents ad formam bullae

are repealed, except in regard to those constituted previously to the

14th August, 1862.

Sub-title 1

O F P ERPETUAL A NNUITIES

1694. (1) A perpetual annuity constituted as the consideration

of an alienation or as a burden on an assignment of an immovable,

whether under an onerous or a gratuitous title, is called a land

annuity.

(2) An annuity constituted by the payment of a sum of money

or other movable thing, is called a simple annuity.

1695. An annuity constituted by the payment of a sum of money

cannot exceed four per cent per annum on the sum paid.

1696. (1) A perpetual annuity is of its essence redeemable at

any time, at the will of the debtor, notwithstanding any agreement

to the contrary, saving the proviso to article 1701.

(2) It shall, however, be lawful for the creditor to stipulate that

the annuity shall not be redeemed during his life, or before the

lapse of a definite time which cannot exceed twenty years, in the

case of land annuities, or ten years, in the case of simple annuities,

to be reckoned from the date of the constitution of the annuity.

(3) If a longer period of time is agreed upon, it shall be reduced

to the one or the other of the said times, as the case may be.

(4) When the creditor is a foundation or a trustee, it shall

however be lawful for the parties to the contract to establish the

terms for redemption of any annuity governed by Title XI of Book

Second of this Code, including the fixing of the rate of redemption,

the period before which it may not be redeemed, at whose option it

may be redeemed and similar matters and may even prohibit such

redemption by express terms.

1697. (1) The redemption of a simple annuity constituted in

consideration of the payment of a sum of money is effected by the

reimbursement of an equal sum.

(2) If the annuity was constituted in consideration of other

movable things the value of which was stated in the contract, the

redemption is effected by the reimbursement of a sum equal to such

value.

1698. (1) The redemption is effected by the reimbursement of

the sum resulting on capitalizing the annuity at the rate of three per

cent, in case of a land annuity, or, at the rate of four per cent, in

each of the following cases

(a) in the case of a simple annuity constituted in

consideration of movable things the value of which has

not been stated in the contract;

(b) if the annuity has been created by a will, donation or

other instrument which does not clearly show what

was given for the constitution of the annuity.

(2) Nevertheless, if the annuity has been constituted for the

purpose of creating an ecclesiastical benefice or a sacred

patrimony, or of being employed for pious uses, or for the relief of

the poor, or in reward for virtue or merit, or for any other purpose

of public utility, the redemption is, in every case, effected by the

reimbursement of the sum resulting on capitalizing the annuity at

the rate of two per cent.

Furthermore, but subject to any contrary agreement

pursuant to the provisions of article 1696(4), the same rule shall

apply if the annuity has been constituted for the benefit of a social

purpose foundation or of a charitable trust.

1699. Saving the cases expressly stated in the contract, the

debtor of a perpetual annuity may be compelled to redeem it -

(a) if he fails to give to the creditor the security promised

in the contract;

(b) if, in the event of failure of the security given, he does

not give fresh security equally sufficient;

(c) if he fails for three years to pay the annuity, or if,

notwithstanding that he made part-payments in each

year, he remains a debtor in a sum equal in amount to

three yearly payments;

(d) if he has become bankrupt or insolvent, or his

condition has been so altered that the continuance of

the payment of the annuity is endangered.

1700. (1) In the cases mentioned in paragraphs (a), (b) and (c)

of the last preceding article, the court may grant to the debtor a

reasonable time within which to give the security promised, or to

substitute other security for that which has failed, or to pay the

annuity fallen due, and thus release himself from the obligation of

redeeming the annuity.

(2) Such time cannot exceed the period of two months which

may, for just cause, be extended to a further period of two months

only.

(3) The provisions of article 1520 shall also, in the cases

provided for in this article, apply to any other creditor of the

debtor, and to any other party interested.

1701. (1) The provisions of articles 1696 to 1700 shall also

apply to any other yearly payment in perpetuity constituted under

any title, even if by a will or donation, saving the provisions

relating to emphyteusis.

(2) They shall also apply to annuities or other yearly payments

constituted before the 11th February, 1870

Provided that the redemption of an annuity or other yearly

payment lawfully constituted, whether before or after the 11th

February, 1870, for the purpose of creating an ecclesiastical

benefice or a sacred patrimony, or of being employed for pious

uses, cannot be effected without the consent of the competent

ecclesiastical authority.

Sub-title II

O F L IFE A NNUITIES

1702. A life annuity may be constituted either for the life of the

person who furnishes the money or other thing, or for the life of the

debtor or of a third party having no right to the annuity.

1703. It may be constituted for the life of one or more persons.

1704. It may also be constituted in favour of a third party,

although the price of it has been paid by another person.

1705. A contract for an annuity for the life of a person who was

dead at the time of the contract, is inoperative.

1706. A life annuity may be constituted at any rate of interest the

parties choose to fix.

1707. The person in whose favour a life annuity has been

constituted for a price, may demand the dissolution of the contract

if the grantor does not furnish to him the security stipulated for its

execution.

1708. The mere default of payment of the annual sums fallen due

does not entitle the grantee of the life annuity to demand the

repayment of the capital, or to recover the thing alienated: he is

only entitled to demand payment of the arrears, and a security for

future payments.

1709. The grantor cannot release himself from the payment of

the annuity by offering to reimburse the capital and by waiving all

claims to the repayment of the annual sums paid by him: he is

bound to pay the annuity during the whole life of the person or

persons for whose life the annuity has been constituted, whatever

may be the duration of the life of such person or persons, and

however burdensome the payment of the annuity may have become.

1710. (1) A life annuity is due to the payee in proportion to the

number of days the person for whose life the annuity was

constituted, has lived.

(2) Nevertheless, if it has been stipulated that the annuity is to

be paid in advance, the whole instalment already paid in advance or

which should have been so paid is acquired from the day on which

the payment became due.

1711. (1) It cannot be stipulated that a life annuity shall not be

subject to attachment in pursuance of a garnishee order, unless it is

created under a gratuitous title, whether by an act inter vivos or by

a will.

(2) Where the annuity is so created under a gratuitous title, it

may be stipulated that it cannot be alienated or sold.

1712. The payee of a life annuity cannot claim the annual sums,

unless he proves the existence of the person for whose life it has

been constituted.

Title XI A

O F LIFE INSURANCE CONTRACTS *

Sub-title 1 - Contractual issues

1712A.(1) A contract of life insurance may be stipulated over the

life of the policyholder or that of a third party in relation to which

the policyholder has an insurable interest, which is lawful, at the

commencement of the contract.

*The provisions of this Title shall have effect in relation to contracts of insurance

entered into after the coming into force of this Title (15th August, 2005) and to

relevant subsequent legal transactions done under or in relation to contracts of

insurance existing on such date. Nothing in the said Title shall affect the validity of

any contract of insurance entered into prior to such date or anything done thereunder

or in relation thereto until such date.

(2)

For the purposes of this article

(a) a person has an insurable interest in his own life and in

the life of his spouse;

(b) a parent of a person who has not attained the age of

eighteen years, and a guardian of such person has an

insurable interest in the life of that person;

(c) a person who is likely to suffer financial loss as a

result of the death of some other person has an

insurable interest in the life of that other person;

(d) a body corporate has an insurable interest in the life of

an officer, shareholder or employee of the body

corporate and a partnership has an insurable interest in

the life of a partner or employee of the partnership;

(e) an employer has an insurable interest in the life of his

employee and an employee has an insurable interest in

the life of his employer;

(f)

a person has an insurable interest in the life of a person

on whom he depends, either wholly or partly, for

maintenance and support;

(g) for the purposes of this title, the term "life insurance"

shall include any contract of insurance in terms of

which any benefit is payable on death.

(3) Subject to the interest being lawful, the agreement by an

insurer to enter into a contract of life insurance over the life of a

person other than the policyholder shall be sufficient evidence of

the fact that the assured has an insurable interest in the life of the

life assured.

(4) Except in the case referred to in sub-article (2)(c), where a

person has an insurable interest in the life of another person it shall

not be necessary for the policyholder to prove that he has suffered

any loss or that the loss suffered bears any relationship to the sum

insured.

1712B.(1) Where the contract of insurance refers to the life of a

third party, the consent in writing of such third party, or in case of

persons who lack legal capacity of their lawful representative, to

the entering into of the contract and to the sum assured, shall be

required on pain of nullity of the contract.

(2) In the absence of consent as above provided the nullity of

the contract may only be raised by the policyholder or the person

whose life is assured and in such event all premia paid to the

insurer shall be returned to the person who paid them.

(3) Consent given by a third party whose life is insured shall be

irrevocable unless expressly stated otherwise in writing in the

policy.

(4) Where consent is revocable as established in sub-article (3)

and it is withdrawn by notice in writing to the policyholder and the

insurer, and barring other arrangements between the parties to the

contract, the contract of insurance shall terminate.

(5) In case of persons who lack legal capacity, where the lawful

representative is himself the proposed policyholder, the prior

consent of the Civil Court in its voluntary jurisdiction shall be

required

Provided that where the lawful representatives are the

parents of a child or any one of them, the consent of any one of the

parents shall be sufficient

Provided further that where the life assured is that of a

minor it shall not be lawful for the life cover under the policy to

exceed forty-six thousand and five hundred and eighty-seven euro

and forty-seven cents (46,587.47) or such other amount as the

Minister may prescribe from time to time by means of a notice in

the Gazette.

(6) Such consent shall be presumed where the third party forms

part of a defined class of persons whose lives are insured in

accordance with terms and conditions of an insurance arrangement

covered by a group policy to which such third party has agreed or

subscribed, including any arrangement forming part of a person’s

conditions of employment.

(7) Notwithstanding the provisions of this Code relating to

assignment and pledge of rights -

(i)

the assignment or pledge of a contract of life

insurance, and

(ii) any designation or substitution in the beneficiary

designated in such contract, or the assignment of such

benefit,

shall not be valid without the consent in writing of the third party

whose life is insured, saving the provisions of any special laws in

terms of which such consent may not be necessary for such

transactions.

1712C.(1) The policyholder may elect that the proceeds or any

benefit arising from a contract of life insurance, whether payable

on a definite maturity date or on the death of the life insured,

including any surrender value, be payable to one or more named

beneficiaries

Provided that in case of a spouse or children of the

policyholder the designation of such persons by reference to the

class of persons shall be sufficient and in such case, unless

otherwise stated in the policy, they shall enjoy rights to the

proceeds in equal shares and shall benefit from such designation

even if they do not accept the inheritance

Provided further that it shall also be lawful to designate a

class of beneficiaries in case of insurance contracts in favour of

persons who participate in a group policy as is referred to in article

1712B(6).

(2) (a) The designation of a beneficiary or a class of

beneficiaries shall be made either in the original

contract of life insurance or policy or in any

subsequent amendment of the policy and such

designation may refer to the full proceeds or part

thereof, and may be subject to conditions, suspensive

or resolutive.

(b) When the purpose of the designation expressly to be

for the provision of maintenance of the beneficiary or

as a pension, the said designation may be subject to

restriction on alienation or any other legal transaction,

subject to diminution or termination in the event that

the beneficiary becomes bankrupt or insolvent or any

of his property becoming liable to seizure for the

benefit of his creditors and shall not be liable to

attachment under a garnishee order issued against the

insurer

Provided that the said immunity from garnishee

shall only apply to sums reasonably required for

maintenance of the beneficiary or for a pension being

not more than twice the highest State pension in Malta.

(3) Subject to the provisions of article 1712D(4), the

policyholder may revoke or vary the terms of any designation of a

beneficiary.

(4) The revocation or modification by a policyholder of a

designation of a beneficiary may not be made by means of a will.

The heirs of the policyholder may not revoke the designation of a

beneficiary after the death of the policyholder.

1712D.(1) Subject to the right of revocation by the policyholder

as provided in article 1712C(3) and the provisions of sub-article (7)

of this article relating to group policies, when made payable to one

or more designated beneficiaries, the proceeds and any benefit

arising from a contract of insurance, including any surrender value,

are due to the beneficiary and form part of his estate, whether or

not such beneficiary is aware of such designation.

(2) The beneficiary shall not enjoy any rights other than as

stated in sub-article (1) in relation to the policy and the insurer

shall not disclose any information about the policy without the

prior written consent of the policyholder, until such time as the

policyholder dies in which case the insurer, upon becoming aware

of such fact, shall inform the beneficiary of his entitlement

Provided that the insurer shall inform a beneficiary who has

accepted the designation, of the reasons which may produce the

lapse of the policy, and this within a reasonable time prior to such

lapse taking effect.

(3) After acceptance by a beneficiary -

(a) the revocation of the designation of a beneficiary, or

(b) the modification of the sum for which the policy has

been taken out, or

(c) the pledge or assignment of the policy, may only be

made with the prior written consent of the beneficiary

Provided that the above shall not apply to a group policy

which shall be governed by the terms of any applicable scheme,

and

Provided further that a pledge or assignment made without

such consent shall be valid but shall be subject to the prior rights of

the designated beneficiary.

(4) Acceptance by a beneficiary of a designation in terms of

this provision shall be dated, signed by the beneficiary and

countersigned by a witness and shall be notified to the insurer. For

the purposes of this article -

(a) "written" shall not include electronic means, and

(b) a written demand claiming the proceeds under the

policy to the insurer by the designated beneficiary

shall be treated as acceptance in writing.

Any such acceptance shall be noted by an endorsement to

the policy.

Notice of a designation of a beneficiary may be given even

after the death of the policy holder or the life insured provided that

any such notice is given within seven working days of such death

after which period the designation shall lapse and shall not have

any legal effects.

(5) Subject to the express terms of the designation, all

references to the beneficiary in these articles shall be construed as

including the heirs, legatees, pledgees or assignees, as the case may

be, of the designated beneficiary.

(6) All transactions referred to in these articles shall have legal

effects only when the insurer receives notice thereof or otherwise

acknowledges a written notice and in cases where more than one

such act is notified, any such acts shall take effect subject to any

previously notified or acknowledged acts.

(7) The following rules shall apply in the case of group

policies referred to in article 1712B(6)

(a) the entitlement of such beneficiary shall be in

accordance with the terms of such scheme and it shall

be lawful to provide for any conditions including the

termination of benefit on the termination of

employment;

(b) subject to the terms of the scheme not providing

otherwise, the participant in a scheme shall not be

entitled to assign or pledge his rights nor shall he be

entitled to the surrender value of the policy on

termination of benefit and the arrangement shall

provide rules on the transferability of the benefits as

required by applicable law.

1712E.(1) The sums payable under a contract of life insurance to

a designated beneficiary shall not be subject to the rules of

reduction for breach of the reserved portion of the estate. Neither

shall such rules apply to the sums paid by the policyholder by way

of premium or additional contributions to the policy where such

sums are moderate, regard being had to the estate of the

policyholder. Where the sum is not moderate, the right to reduction

for breach of the reserved portion of the estate shall only be

exercisable against the beneficiary of the proceeds of the policy

and no rights shall lie against the insurer.

(2) Unless the policyholder exempts the proceeds of an

insurance policy payable to a designated beneficiary who is a co-

heir from collation in terms of this Code, the sums payable shall be

regulated by the applicable provisions of this Code.

1712F.(a)Where a policy of life insurance is entered into by two

or more policyholders, it shall be lawful to agree that

on the death of one policyholder, the contract of

insurance will continue in relation to the surviving

po l ic yh o ld e r a n d i n su c h c a s e a ll th e r i gh t s a nd

obligations under such contract of insurance at the time

of death of the deceased policyholder shall accrue to

the surviving policyholder and shall not form part of

the estate of the deceased policyholder.

(b) Where a joint policy is stated to terminate on the death

of the first life, it shall be lawful to grant the surviving

policyholder an option to choose to receive the

proceeds of the policy or to continue the policy until

the said policyholder’s death.

1712G.(1) Upon the waiver by a beneficiary of a benefit under a

contract of insurance, such beneficiary’s interest shall vest in the

policyholder if there are no other designated beneficiaries. In the

event that there are other designated beneficiaries such interest

shall vest in the other beneficiaries pro rata to their interest. This

provision shall not apply to a group policy which shall be governed

by the express terms of the scheme under which it is issued.

(2) The contract of life insurance shall cease to have effect with

regard to the policyholder or a designated beneficiary who has been

sentenced by a court for the grievious bodily harm or wilful

homicide of the policyholder or the life insured as the case may be.

Furthermore, if the designated beneficiary has made an attempt on

the life of the policyholder or the life insured, and in the cases

referred to in article 1787, subject always to the provisions of

article 1791, the policyholder shall be entitled to revoke the

designation without the consent of the beneficiary or his successors

in title, even if the beneficiary has accepted in terms of article

1712D.

1712H. Where a designation of a beneficiary has been made in

accordance with the preceding articles, the provisions of Title III of

Part II of Book Second of this Code relating to successions shall

not apply to the policy or any rights or proceeds thereunder except

as expressly stated in article 1712E.

1712I.(1) Subject to sub-article (3), the validity and effects of a

contract of life insurance, the obligations of the insurer, the rights

o f t h e p o l i c y h o l d e r, t h e p e r s o n w h o s e l i f e i s a s s u r e d , a n y

beneficiaries and those of third parties, shall be governed by the

proper law expressly chosen by the parties.

(2) In the absence of an express choice, the law applicable in

a ccordance with ge nerally applic able principles o f private

international law and, in case of doubt, the contract, shall be

governed by the law of the country where the insurer carries on its

business, and if it carries on its business in two or more countries,

by the law of the country in which its head office is situated.

(3) Notwithstanding the choice of a foreign proper law and the

express terms of the policy in such case

(i)

when the person whose life is assured is habitually

resident in Malta on the date of the policy, article

1712B shall apply; and

(ii) where the policy holder is domiciled in Malta the

provisions of article 1712E shall apply.

Sub-title 2 - Issues relating to Married Persons

1712J.(1) A contract of life insurance taken out by a person who

s u bs e qu e n tl y co nt r a c t s m a rr i a ge sh a l l no t f or m par t o f t he

community of acquests subject, however, to the right of the other

party to the marriage to be credited with a sum equal to half of the

premia paid by such person during the marriage when such premia

have been paid from community property

Provided that that person may decide that such policy shall

become part of the community of acquests in which case the

subsequent articles shall prevail.

(2) Payments of premia during marriage shall be deemed to

have been made from community property unless there is evidence

to the contrary.

(3) In such cases the policyholder shall be entitled to carry out

all acts in relation to such policy and to receive any proceeds

thereof, whether on maturity or earlier surrender, without the

consent of the other spouse, and the life policy and all proceeds

thereof shall be paraphernal property.

1712K.(1) Married persons may enter into contracts of life

insurance in their own name or jointly.

(2) When taken out jointly, the life policy may only be

surrendered, pledged, assigned or modified, including by the

designation of a beneficiary thereunder, jointly by both spouses

unless the policy is expressly undertaken -

(a) under a condition that either spouse may act without

the consent of the other in all or some matters; or

(b) under the condition stated in article 1712F, and then

only after the demise of a spouse,

in which cases either spouse can act in all matters.

(3) When any contract of life insurance is entered into in the

sole name of a person who is married and whose matrimonial

property is subject to the regime of community of acquests and

notwithstanding any other provisions of law

(a) the life policy may be surrendered, pledged, assigned

or modified, including by the designation of a

beneficiary thereunder, by such person alone and in

such case, when effected -

(i)

for purposes unrelated to the patrimonial

interests of the spouses, or

(ii) without the written consent of the other spouse,

there shall arise a credit in favour of the other

spouse equivalent to half the value of all premia

paid by the policyholder; and

(b) the proceeds of the policy shall be deemed to be

paraphernal property of that spouse subject to a credit

in favour of the other spouse of a sum equal to half the

value of all the premia paid by the policyholder.

(4) Notwithstanding the provisions of the Data Protection Act,

the Professional Secrecy Act or any express clause in the contract,

when a contract of life insurance is entered into by a married

person jointly, both spouses shall be entitled to full information

relating to all matters regarding the said contract. When entered

in to by o n e spo u s e , o n ly s uc h pe rs o n a nd o t he rs ex pr e s s ly

authorised in writing, shall be entitled to information about the

policy.

(5) The credit referred to in sub-article (3)(a) and (b) shall

enjoy a special privilege over the proceeds of the policy in the

hands of the insurer in the event that the share of the community

property accruing to the policyholder at time of the dissolution of

the community is not sufficient to pay the value of the credit to the

other spouse.

Sub-title 3 - Issues relating to parental authority

1712L.(1) It shall be lawful for parents of a child to enter into a

contract of life insurance, for the child as policyholder, in the

administration of the child’s property.

(2) Any such contract may be entered into by either parent and

the name of the child as policyholder shall be recorded in the

policy.

(3) Payments of any proceeds under the policy, at maturity,

during the term by way of withdrawals or on earlier surrender, may

only be made to the parents jointly or to a bank account designated

as property of the child. The provisions of article 136 shall apply to

any relevant acts in relation to the life insurance policy.

(4) It shall not be lawful for the parents to designate a third

party as a beneficiary of a contract of life insurance entered into for

a child as policyholder.

(5) On reaching maturity the child shall be entitled to exercise

all rights in relation to the policy without the need to any formality

other than giving notice to the insurer and providing him with

evidence of his identity and age.

Sub-Title 4 - Pledge of Insurance Policies

1712M.(1) Rights under an insurance policy may be pledged by

the policyholder in favour of any person as security for any

obligation. The pledge of a policy shall be constituted by means of

an instrument in writing entered into between the pledgor and the

pledgee.

(2) The said pledge shall be binding on the insurer and third

parties and the privilege as provided in Title XXIII shall arise only

after notice of the pledge shall have been given in writing by the

pledgor or the pledgee to the insurer or the insurer shall have

acknowledged the pledge in writing.

(3) During the existence of a pledge, any assignment of the

policy shall be subject to the pledge in favour of the pledgee. The

rights of a pledgee are however subject to the rights of a designated

beneficiary who has accepted the designation prior to the pledge.

When a pledge is granted, the insurer shall be bound to inform the

pledgee of any prior rights notwithstanding any duty of

confidentiality.

(4) Subject to any prior rights, the pledgee of an insurance

policy shall enjoy all the rights of the policyholder to receive

notices under the policy, to receive any proceeds of the policy,

when due, on maturity or earlier surrender and the right to exercise

all options of the pledgor under the policy, except the designation

of a beneficiary, but shall not be liable for the performance of any

obligations of the policyholder towards the insurer unless otherwise

expressly agreed in writing.

(5) Without prejudice to the right of the pledgee to apply for

the judicial sale of the policy and notwithstanding the provisions of

this Code, in the event of a default under the agreement between

the pledgor and the pledgee and upon giving notice by judicial act

to the pledgor and the insurer, the pledgee shall be entitled to

(i)

dispose of the policy to a third party; or

(ii) appropriate and acquire the policy himself, in

settlement of the debt due to him or of part thereof, or

at the best achievable price being not less than the fair

value.

(6) For the purpose of the preceding sub-article, the value of

the policy may be established by agreement between the pledgor

and the pledgee after notice of default has been given by the

pledgor to the pledgee and no prior agreement shall be valid

Provided that, in case of disagreement, the fair value for the

sale or appropriation of the policy shall be determined -

(a) by a certified public accountant appointed by the Court

or an arbitrator, if so agreed by the parties, on the

application of the pledgee; or

(b) in such other manner as may be expressly agreed

between the parties

Provided that if the fair value cannot be obtained the

pledgee can apply to the Court or the arbitrator for approval for a

sale or appropriation at a price which is less than the fair value as

aforesaid, subject to such conditions as the Court or arbitrator may

determine.

(7) In cases where there is a surrender value of the policy, the

pledgee may also give notice to the pledgor and insurer requesting

the surrender of the policy and the payment of the surrender value

to the pledgee. The surrender value shall be that established by the

insurer in accordance with the terms of the policy and notified to

the parties.

(8) For the purposes of sub-articles (7) and (8), the value of the

policy shall be that obtaining on the date of the proposed sale,

appropriation or surrender.

(9) Any proceeds of the policy which exceed the debt due to

the pledgee shall be returned to the pledgor.

(10) It shall be lawful for a policyholder to enter into more than

one pledge agreement in relation to the same policy and the rules

stated in this article shall apply to a second and further policy in the

same way as they apply to the first policy but a subsequent pledge

shall rank subject to previous pledges and other prior rights. In

such case, a subsequent pledge shall be conditional on the existence

of the prior pledge and no rights shall be exercisable by the

subsequent pledgee until such time as the prior pledgee’s rights

have been satisfied and, or terminated.

Title XII

O F G AMING AND B ETTING

1713. (1) The law grants no action for a gaming debt, or for

the payment of a bet.

(2)

Nor does it grant any action -

(a) for the recovery of any sum lent by any person who

knew that such sum was intended for gaming;

(b) for the recovery of any sum lent by any person

interested in the game, for the payment of money lost

at such game.

1714. (1) Games which tend to help training in the use of

arms, foot-races, horse-races, boat-races, ball-games and other

games of the same kind which develop the dexterity and exercise of

the body, are excepted from the provisions of the last preceding

article.

(2)

Nevertheless, the court may reduce the sum claimed when it

appears to it to be excessive.

1715. Any agreement made for the purpose of defeating the

provisions of the last two preceding articles, is void.

1716. The loser at a game, not included in those mentioned in

article 1714 may recover from the winner the sum or thing which

he has already paid to him, provided he shall, by means of a

judicial act, within two months to be reckoned from the day of

payment, call upon the winner to return the sum or thing so paid.

1717. Any person who has made any payment in Malta in

connection with a lottery set up in Malta or in other countries, may

recover the sum paid by him from the person to whom the payment

was made, although the latter was only an agent of some other

person; unless the lottery was authorised or permitted by the

competent authority in Malta.

1717A.No debt or other obligation arising under any contract of

differences, interest cap agreement, swap, foreign currency

exchange or other similar agreement the purpose or intended

purpose of which is to secure a profit or avoid a loss (by reference

to fluctuations in the value or price of property of any description

or in an index or other factor designated for such purpose in the

contract) nor any contract of insurance shall be void or

unenforceable by reason of the provisions of this Title or of any

other law related to gaming or betting.

Title XIII

O F C OMPROMISE

1718. A compromise is a contract whereby the parties, by means

of a thing given, promised or retained, put an end to a lawsuit

which has commenced or prevent a lawsuit which is about to

commence.

1719. (1) Where the subject-matter of the lawsuit to which the

parties wish to put an end or which they wish to prevent is

immovable property, the compromise is null, if not made by a

public deed.

(2) The same rule shall apply where, in order to compromise,

an immovable thing is given or promised.

1720. No person may make a compromise unless he is a person

capable of alienating the things included in the compromise.

1721. A compromise between the spouses without the authority

of the competent court, is null, except in the cases where, according

to the provisions of article 1366, a contract of sale may be validly

made between them.

1722. Any compromise regarding property subject to entail, or

regarding future maintenance, whether bequeathed by a will or

acquired by donation or other contract, or ordered by the court, or

due by law, is also null, if made without the authority of the

competent court.

1723. (1) Where for the validity of a compromise the authority

of the court is requisite, such authority shall, if the lawsuit, or the

hearing of the lawsuit has not yet commenced, be granted, if

expedient, by the court of voluntary jurisdiction.

(2) If the hearing of the lawsuit has commenced, the authority

may be granted either by the said court, or by the court before

which the lawsuit is pending.

1724. (1) A penalty clause stipulated in a contract of

compromise against the party who fails to fulfil the compromise,

shall be in lieu of compensation for any damage caused by delay,

without prejudice to the obligation to fulfil the compromise, saving

the provisions of article 1119 in case the contract is annulled.

(2) If the contract of compromise is impeached on the ground

of nullity, the payment of the penalty is suspended, pending the

suit.

(3) The provisions of this article shall apply to arbitration

agreements which contain a penalty clause.

1725. A compromise shall not extend beyond the subject-matter

thereof: a renunciation in a contract of compromise of all rights,

actions, and claims, applies only to what relates to the controversy

which has given rise to such compromise.

1726. A compromise shall only settle the controversies which

the parties had in view, whether such parties have expressed their

intention in special or general terms, or whether such intention

appears as a necessary consequence of what has been expressed.

1727. If a person who has made a compromise as to a right

belonging to him acquires thereafter a similar right from another

person, he is not bound by the compromise previously made, with

respect to the right newly acquired.

1728. A compromise made by one of several interested parties

does not bind the others, nor may it be set up by them.

1729. (1) A compromise shall have as between the parties the

effect of a res judicata.

(2)

It cannot be set aside on the ground of an error of law.

1730. (1) Nevertheless, a compromise may be set aside, where

there has been an error as to the person with whom the contract was

made, or as to the matter of the controversy which the parties

intended to compromise.

(2) It may be set aside in all cases where there has been fraud

or violence.

1731. A compromise may also be set aside when through an

error of fact it has been made in execution of a title which was null,

unless the parties have expressly taken such nullity into account.

1732. A compromise based on documents which are

subsequently found to be false, is wholly void.

1733. (1) A compromise of a suit determined by a judgment

which has become a res judicata, of which the parties or one of

them had no knowledge, is also void.

(2) If the judgment of which the parties had no knowledge is

one from which there could still be an appeal, the compromise shall

be valid.

1734. (1) Where the parties have made a general compromise

regarding all outstanding matters between them, the documents

which were unknown to them or which have been subsequently

discovered, shall not be a good ground for rescission, unless they

had been concealed through the act of one of the parties.

(2) The compromise, however, shall be void if it only referred

to a single thing and it is shown by the documents subsequently

discovered that one of the parties had no right on such thing.

1735. Each of the parties has a right to demand the correction of

any error of calculation incurred in a compromise.

1736. A compromise concerning an inheritance depending upon

a will which is not known, is void.

Title XIV

O F D ONATION

G ENERAL P ROVISIONS

1737. (1) The law allows only donations inter vivos.

(2) A donation inter vivos is a contract whereby the donor

irrevocably and gratuitously transfers a thing to the donee who

accepts it.

(3) A donation in which the donor reserves to himself the

power to revoke or alter the donation itself, is void, except in the

cases expressly provided in this Code.

1738. A gift made out of gratitude, or in consideration of the

merits of the donee, or as a special remuneration for services for

which the donee had no right of action, as well as that to which

some burden on the donee is attached, is likewise a donation,

saving the provisions of the next following article.

1739. If the donation is made in remuneration for services for

which the donee had a right of action, the special rules relating to

donations shall not apply, except when the value of the thing given

exceeds, by at least one-half, the value of such services, and in

regard only to such excess.

1740. Nor shall the special rules relating to donations apply to an

onerous donation, except when the value of the thing given

exceeds, by at least one-half, the value of the burden imposed on

the donee, and in regard only to such excess.

1740A. The rules relating to donations shall not apply to the

settlement or distribution of property under trusts except to the

extent expressly stated by the provisions of this Code.

1740B. Any transfer which is -

(a) a settlement of property under trusts to a trustee or a

distribution or a reversion of property from a trustee

pursuant to any trust; or

(b) an endowment of property to a foundation or a

distribution or a reversion of property from a

foundation pursuant to its terms;

(c) a gratuitous assignment, transfer or contribution of

capital, cash or any other assets by an undertaking to

another undertaking where both undertakings are

either controlled or beneficially owned, directly or

indirectly, to the extent of more than fifty per cent by

the same persons

Provided that such assignment, transfer or contribution

shall on the pain of nullity be expressed in writing; or

(d) a grant of security by title transfer for the performance

of an obligation, and any transfer of such property

back to the transferor upon the performance of the

obligation,

shall not be governed by the provisions of this Title and in

particular shall not be subject to the formalities required by article

1753

Provided that where the transaction consists in or includes a

transfer of immovable property in Malta, the transfer of such

immovable property only shall remain subject to the formalities

required by article 1753(1).

1741. (1) A donation may only include the present property of

the donor.

(2) If it includes future property, it shall be null with regard to

such property.

(3) The provisions of this article shall not apply to the

donations mentioned in Sub-titles IV and V of this Title.

1742. Saving any other special law in Malta, any ecclesiastical

benefice, or perpetual ecclesiastical chaplaincy, or perpetual sacred

patrimony or patrimonial subsidy, shall, as regards both the

exercise, enjoyment, extinguishment or loss of the right of

advowson, whether active or passive, as well as the terms and

conditions required in order that they may constitute a title for

ordination or be availed of for such purpose, be governed by the

canon law for the time being in force in Malta

Provided that nothing in this article shall affect any right

competent to and exercised by the Government with regard to any

benefice, chaplaincy, sacred patrimony or patrimonial subsidy.

Sub-title I

O F THE C APACITY TO DISPOSE OR RECEIVE BY D ONATION

1743. All persons can dispose of or receive property by

do nation, excep t those who are in thi s Titl e decl ar ed to be

incapable.

1744. The following persons are incapable of making a donation

(a) those who, according to the provisions of paragraphs

(a), (b), (c) and (d) of article 597, are incapable of

making a will;

(b) any person interdicted on the ground of prodigality,

unless authorized to make a donation by the court

which had ordered his interdiction;

(c) minors.

1745. A donation made by a person who is incapable of making a

donation is null, even though the incapacity of the donor has ceased

previous to the time in which the donation is to be carried into

execution.

1746. (1) Those who, at the time of the donation, or at the time

o f th e happen ing of the suspensiv e condi tion attached to a

donation, were not yet conceived, are incapable of receiving by

donation.

(2) The provisions of this article shall not apply with regard to

the immediate children of a stated person who is alive at the time of

the donation, nor with regard to persons called to the enjoyment of

any foundation.

1747. (1) Those who are not born viable, are also incapable of

receiving by donation.

(2) In case of doubt, those who are born alive shall be

presumed to be viable.

1748. Repealed by: XVIII.2004.104.

1749. The provisions of article 609 respecting the incapacity of a

tutor or curator, shall apply to donations.

1750. A donation made in favour of a person who is incapable of

receiving by donation, as provided in article 1749 is null, even

though it is disguised under the form of an onerous contract, or

made in the name of intermediaries.

1751. Any one of the parents, the children, the descendants and

the spouse of the person who is incapable of receiving by donation

shall, unless the contrary is proved, be considered to be

intermediaries.

1752. A donation made to the notary by whom the deed of

donation was received, or to his spouse, or to any person related to

him by consanguinity or affinity to the third degree inclusively,

may be annulled on the demand of the donor or of his heirs, so long

as such donation has not been carried into execution.

Sub-title II

O F THE F ORM AND E FFECTS OF D ONATIONS

1753. (1) A donation is null, if not made by a public deed.

(2) The provisions of sub-article (1) of this article, however,

shall not apply to -

(a) manual gifts of money or of other movable corporeal

things, or of documents to bearer, when the sum or

value thereof is moderate, regard being had to the

condition of the persons and to other circumstances;

(b) any gratuitous renunciation of rights or assignment of

debts or negotiable securities, or to any remission of

debts or any stipulation made in favour of third parties

in any of the cases referred to in articles 999, 1000 and

1704

Provided that, as regards the form of any such

renunciation, assignment, remission or stipulation, the

provisions of the said articles or of any other law shall

be observed, notwithstanding that such provisions

relate to onerous agreements.

1754. (1) A donation shall not bind the donor and shall not be

operative except as from the day on which it is expressly or tacitly

accepted by the donee.

(2)

The acceptance of a donation of immovable things is null,

unless it is made in the deed of donation or by any other public

deed.

1755. The donee may validly accept the donation at any time

during the life of the donor so long as the latter has not revoked it.

1756. (1) An acceptance made after the death of the donor

shall be ineffectual, except in the following cases

(a) when the donor has reserved to himself, during his

lifetime, the use or usufruct of the thing given;

(b) when the donation is to be carried into execution after

the death of the donor;

(c) when the donor dies within three months from the day

of the donation.

(2) In each of the aforesaid cases, the donee may, until the

expiration of a time to be fixed by the court upon the demand of

any interested party, validly accept the donation which has not been

revoked by the donor; such time may not exceed one month, but

may for just cause be extended by the court to another month.

1757. An acceptance made by the heirs or the creditors of the

donee has no effect.

1758. (1) A donation made to a minor may be accepted in his

behalf by any one of his parents, as well as by his ascendants even

though his parents are living.

(2) If the donation is made by one of the parents or by an

ascendant of the minor, it may be accepted in his behalf by the

other parent or any other ascendant.

(3) Where, however, the minor is subject to parental authority,

no person, other than the parent exercising parental authority, may

accept the donation on behalf of the minor except with the authority

of the court.

(4) If the donation is made by both parents of the minor, the

court may authorise the minor himself to accept it or appoint a

person to accept it in his behalf.

1759. The provisions of the last preceding article shall also

apply with regard to the parents of an illegitimate child

acknowledged in the deed of acceptance itself or by any other

instrument, or legitimated by a decree of the court.

1760. A donation made to a person who, by reason of age or for

other cause, is subject to tutorship or curatorship, may not be

accepted except by the tutor or curator, with the authority of the

court.

1761. In the cases referred to in the last three preceding articles,

the donation may not be annulled for want of the authority therein

mentioned, except upon the demand of the donee; and such demand

may not be made after the expiration of two years from the day on

which the donee attains his majority or ceases to be subject to

tutorship or curatorship.

1762. (1) Where in the cases referred to in articles 1758, 1759

and 1760 the parent, the legitimate ascendant, or the tutor or

curator neglects or without just cause refuses to accept the

donation, the court shall, upon the demand of any person, appoint a

special curator for the purpose.

(2) The same shall apply where the person making the demand

declares on oath that he does not know whether the minor has any

parent or legitimate ascendant alive or that he does not know where

any such parent or ascendant is to be found, and the court is of

opinion that the donation is advantageous to the minor.

1763. A minor who is not subject to parental authority nor

provided with a curator, may validly accept a donation if he has

completed the age of fourteen years; saving the action of rescission

which may be competent to him under article 971.

1764. (1) The person who has lawfully accepted a donation on

behalf of another person is bound to cause such donation to be

registered, where required, in the Public Registry according to and

for the purposes of the provisions of article 996.

(2) Such registration, however, may also be made upon the

demand of the notary by whom the deed of donation or acceptance

was received, or upon the demand of the donee, whoever he may

be, and even without any authority.

1765. (1) A minor or any other person, being a donee, shall not

be reinstated in case of non-acceptance or non-registration of the

donation; saving any right of relief to which the donee may be

entitled according to law against the person who was bound to

accept the donation in his behalf or to cause it to be registered.

(2) Such reinstatement shall not be granted even though the

person so bound is insolvent.

1766. A donation made in contemplation of a certain and

determinate marriage, and prior to such marriage, whether by the

future spouses to each other or by any other person in favour of the

future spouses and of the children to be born of their marriage, may

not be impeached on the ground of non-acceptance.

1767. The provisions of the last preceding article shall also

apply with regard to donations between spouses, during marriage.

1768. Notwithstanding the provisions of article 1056, a donation

made on condition that the donee shall restore the thing given, in

the event of the donor having children by a marriage contracted

either before or after the donation, is valid.

1769. The donee is not bound to pay the debts of the donor

unless required to do so by the terms of the donation; saving in

favour of the creditors the action referred to in article 1144, and the

hypothecary action, where competent.

1770. (1) A donation made subject to the condition of the

payment of debts or burdens existing at the time of the donation, or

of future debts or burdens the causes whereof, however, are

specified in the deed of donation or in a note annexed thereto, is

valid.

(2) A donation, however, made subject to the condition of the

payment of other future debts or burdens, is null.

1771. In any of the cases referred to in sub-article (1) of the last

preceding article, if the amount of the debts or burdens has not been

also stated in the deed or note aforesaid, the donee is not liable

beyond the value of the thing given, unless he has expressly bound

himself to pay such debts or burdens whatever their amount may

prove to be.

1772. A donation, however, of all present property or of a part of

all present property, unless a contrary intention appears from the

d e e d o f d on a t io n , i s p r e s u me d to hav e be e n m a d e w i th t he

reservation of deducting therefrom, before the release or delivery

of the property, the amount of the debts of the donor, existing at the

time of the donation, either wholly or in proportion to the part

given according as to whether the donation includes all the property

or only a part thereof

Provided that such deduction cannot be claimed after the

delivery or the release of the property has taken place; saving the

right of the creditors to any of the actions mentioned in article

1769.

1773. (1) The donee is bound to supply maintenance to the

donor who has become indigent, to the extent of the fruits of the

thing given, provided the donee is in possession of the thing given

or the value thereof and is not himself in a state of indigence.

(2) If the thing given is in the possession of the donee but

yields no fruits, the obligation aforesaid shall be limited to the

extent of the interest on the value of the thing itself as fixed by a

valuation.

(3) If the donees are two or more, the prior donee is bound as

aforesaid, only where the amount which the subsequent donee is

bound to supply is not sufficient for the maintenance of the donor.

(4) The provisions of this article shall apply even if there are

persons related to the donor by consanguinity or affinity who are

bound and in a position to supply maintenance to him.

1774. If the donor has reserved to himself the power to dispose

of a thing included in the donation or of a specified sum out of the

property given, and dies without having disposed of the same, such

thing or sum shall belong to the donee, unless a contrary

declaration has been expressly made in the deed of donation, or

unless the donee has prevented the donor from disposing of such

thing or sum.

1775. If the donor has excluded a thing from the donation, in

order to dispose of it, and does not dispose of such thing either

inter vivos or by will, it shall vest in the heirs of the donor, unless

the donor himself has expressly declared in the deed of donation

that such thing shall vest in the donee if he dies without having

disposed of it.

1776. Entails are forbidden in donations as in wills; and the

provisions of articles 331, 736 and 757 to 761 shall apply to

donations.

1777. It shall be lawful for the donor to reserve to himself the

usufruct of the thing given.

1778. Where a donation of movable things has been made with

the reservation of usufruct, the donee shall, upon the cessation of

the usufruct, have against the donor or his heirs the same rights as

are granted to the owner under the provisions of Title III of Part I of

Book Second of this Code for the restoration of such things.

1779. (1) The donor may stipulate that the things given shall

revert to himself or his heirs, in case of the decease of the donee

without issue at any time.

(2) He may also stipulate the reversion of the things given in

case of the predecease of the donee alone or in case of the

predecease of the donee and his descendants

Provided that such stipulation can only be made in favour of the

donor alone.

1780. When the reversion takes place, any alienation of the

property given is dissolved, and such property reverts to the donor

free from any burden or hypothec, with the exception of the

hypothec registered in security of the dowry and the dower of the

wife of the donee, if his other property is insufficient for that

purpose, and the donation was made to him in the same marriage

c o n t r a c t b y w hi c h t h e d o w r y w a s co n s t i t u te d or t h e d o w e r

promised.

1781. If a donation containing a stipulation of reversion is made

in favour of two or more persons, the condition shall, in case of the

predecease of one of such persons or of his descendants, according

to the cases mentioned in article 1779, be deemed to have happened

with regard to the portion of the party deceased, and the provisions

of the last preceding article shall apply with regard to such portion.

1782. The donor is not bound to warrant the donee against

eviction in respect of the things given except in any of the

following cases

(a) if the donation has been made in contemplation of

marriage or for the constitution of a sacred patrimony;

(b) if the donor has expressly promised warranty;

(c) if eviction takes place in consequence of debts for

which the donor himself is personally liable;

(d) if the donor has given a thing belonging to another

person, in bad faith and with the object of inducing the

donee to give, or to do or not to do any thing;

(e) if, by the donation, burdens that may be estimated in

money have been imposed on the donee, or if the

donation has been made in remuneration for services

that may be estimated in money for which the donee

had a right of action: in which case the donor is bound

to give warranty up to the value of such burdens or

services.

1783. (1) In the cases referred to in paragraphs (a), (b), (c) and

(d) of the last preceding article, the donee cannot claim from the

donor more than the value which the thing given had at the time of

the donation; unless, in the case referred to in paragraph (d), the

donee has suffered damage to an amount greater than the value of

the thing given, in which case the effects of the warranty shall

extend to such amount.

(2) In the case referred to in paragraph (e) of the last preceding

article, the donee can claim from the donor a sum corresponding to

the value of the burdens discharged or of the services rendered,

whatever such value may be.

1784. The donor is not bound to free the thing given from any

easement or other burden to which it is subject, saving the right of

the donee who has accepted the donation without being aware of

the existence of such easement or burden to renounce the thing

given within one year from the day on which he became aware of

the existence of such easement or burden.

Sub-title III

O F THE E XCEPTIONS TO THE R ULE OF I RREVOCABILITY OF

D ONATIONS

1785. A donation can only be revoked in virtue of a resolutive

condition, express or implied, according to the provisions of

articles 1066, 1067, 1068 and 1069, or for ingratitude or, in case of

endowments to organisations established in accordance with the

Second Schedule, in virtue of the provisions regulating the

revocation of foundations and of endowments made to an

organisation.

1786. In case of revocation in virtue of a resolutive condition,

the property reverts to the donor free from all burdens or hypothecs

imposed by the donee; and the donor shall have against third parties

in possession of the immovables given all the rights which he

would have against the donee himself.

1787. A donation cannot be revoked for ingratitude except in any

of the following cases

(a) if the donee has attempted to take the life of the donor

or has been guilty towards him of cruelty or grievous

injury;

(b) if the donee has wilfully, and with intent to cause

injury to the donor, considerably damaged his

property, or prejudiced his interests;

(c) if, the donor being in urgent need of maintenance or

other personal assistance, the donee has refused him

such support as without great inconvenience to himself

he could have given him.

1788. The revocation of a donation for ingratitude shall never

take place ipso jure.

1789. A renunciation of the right to revoke a donation for

ingratitude is null if made prior to the happening of the event which

gives rise to the exercise of such right.

1790. (1) The demand for revocation on the ground of

ingratitude can only be made within one year from the day of the

offence with which the donee has been charged by the donor, or

from the day on which the donor could have become aware of such

offence.

(2) Revocation on such ground cannot be demanded by the

donor against the heirs of the donee, nor by the heirs of the donor

against the donee, unless, in the latter case, the action had been

commenced by the donor himself, or unless he died within a year

from the day of the offence.

1791. (1) Revocation on the ground of ingratitude shall not

affect any alienation made by the donee, nor any hypothec or other

burden with which he may have charged the property given,

previously to the judicial demand for revocation.

(2) The donee, however, is bound to restore to the donor the

value of the things alienated, having regard to the time of the

aforesaid demand, together with the fruits from the day of such

demand, and to indemnify the donor for any hypothec or other

burden with which he may have charged the property not alienated.

1792. (1) Donations in contemplation of marriage are not

subject to revocation on the ground of ingratitude.

(2) The provisions of this article shall not apply to donations

made by one of the future spouses to the other.

Sub-title IV

OF D ONATIONS IN C ONTEMPLATION OF M ARRIAGE

1793. Donations of present property only, although made in

contemplation of marriage, are, in the absence of any provision to

the contrary, subject to the rules laid down in this Title relating to

donations in general.

1794. Any person not being under a legal disability may, in

contemplation of a certain and determinate marriage, but before

such marriage, dispose of the whole or of a part of the property

which he may leave at the time of his death, in favour of the future

spouses or one of them as well as in favour of the children to be

born of their marriage.

1795. (1) The donation referred to in the last preceding article

is irrevocable in this sense only, that the donor can no longer

dispose, under a gratuitous title, of the things included in the

donation, except as regards small sums by way of remuneration or

otherwise, unless he has reserved to himself a more ample power of

disposing.

(2) The donor, however, shall be at liberty, up to the time of his

death, to dispose under an onerous title of the things included in the

donation; and any renunciation of such power is null.

1796. A donation in contemplation of a certain and determinate

marriage, in favour of the future spouses or of one of them, or of

their children, may be made of both present and future property,

either wholly or in part, provided a description of the property and

of the debts and burdens of the donor existing at the time of the

donation, is annexed to the deed of donation; in which case the

donee shall be at liberty, at the time of the death of the donor, to

retain for himself the property existing at the time of the donation,

subject to the obligation of discharging only the debts and burdens

existing at such time, renouncing his right to the remainder of the

property of the donor.

1797. (1) If the description mentioned in the last preceding

article has not been annexed to the deed of donation of present and

future property, the donee shall be bound to accept or renounce the

donation in its entirety.

(2) In case of acceptance, he can only claim the property

existing at the time of the donor’s death, and shall be bound to

discharge all the hereditary debts and burdens up to the value of

such property.

1798. The property vesting in the donee by a donation made in

terms of article 1794 or in the case mentioned in the last preceding

article, shall be presumed to be sufficient for the discharge of the

hereditary debts or burdens, if the donee, before taking possession

of such property, has not made up an inventory in the manner

provided in the Code of Organization and Civil Procedure, saving

always any proof to the contrary.

1799. (1) As regards the donations referred to in articles 1794

and 1796, the donee cannot, during the life of the donor, demand

that the donation be carried into execution with regard to any part

of the property included therein.

(2) By any such donation, the ownership of the property shall

not vest in the donee except at the death of the donor.

(3) Nevertheless, where the donation was made in terms of

article 1796 and, at the death of the donor, the donee wishes to

avail himself of the power, granted to him in that article, to retain

for himself the property existing at the time of the donation subject

to the obligation of discharging only the debts and burdens existing

at that time, the donee shall be entitled to demand the dissolution of

any alienation, even if made under an onerous title, which the

donor may have made of immovables included in that property, and

of any hypothec or other burden with which the donor himself may

have charged such immo vables, provided the donation was

registered in accordance with the provisions of article 996.

1800. (1) The donations referred to in articles 1794 and 1796

shall lapse, if the donor survives the donee and his descendants

from the marriage in contemplation of which the donation was

made.

(2) Where the children and descendants are excluded from the

donation, such donation shall lapse if the donor survives the donee.

1801. (1) The aforesaid donations, although made in favour of

the future spouses or one of them, shall always, in the event of the

survival of the donor, be presumed to have been made in favour of

the chi ldren and descendants to be born of the marriage in

contemplation of which such donations were made, unless such

children and descendants were excluded by the deed of donation.

(2) The provisions of this article shall also apply in favour of

children born before the donation, and legitimated by the marriage

in contemplation of which the donation was made.

1802. Presents which relations or friends of one of the future

spouses give to the other in contemplation of marriage shall be

deemed to have been given to the former, notwithstanding that in

making such presents words were used implying a donation in

favour of the latter, unless, independently of such words, it is

proved that the intention of the donor was that of giving such things

to the future spouse to whom he has delivered them.

1803. (1) Any donation or promise made in contemplation of

marriage shall lapse if the marriage does not take place.

(2) Any donation made by way of a sacred patrimony shall

lapse, if the donee fails to take holy orders within five years from

the day on which he shall have attained the age at which he could

be admitted to such orders.

Sub-title V

O F D ONATIONS BETWEEN F UTURE S POUSES OR BETWEEN

H USBAND AND W IFE , EITHER BY THE M ARRIAGE C ONTRACT

OR DURING THE M ARRIAGE

1804. The future spouses may, in their marriage contract, make

to each other reciprocally or the one to the other, donations under

the conditions hereinafter mentioned.

1805. Repealed by: XVIII.2004.107.

1806. Any donation of present property, or of present and future

property, or of such property as the donor may leave at the time of

his death, shall, in all cases, even if it is reciprocal, be presumed to

have been made subject to the condition of the survival of the

donee, unless an express stipulation to the contrary is made; and in

every other respect such donation shall be subject to the foregoing

rules relating to donations made in favour of the future spouses by

other persons.

1807. Deleted by Act XXII.2025.9.

1808. (1) Presents given by one of the future spouses to the

other, on the occasion of marriage, shall, notwithstanding that in

delivering such presents words were used implying a donation,

remain the property of the former, and shall be deemed to have

been given to the latter for mere use, during marriage, unless a

donation of such things is proved by the marriage contract.

(2) Even such right of use of the said presents shall cease in the

event of separation on grounds imputable to the party who had

received such presents.

1809. (1) Any donation made by the future spouses in

contemplation of marriage, or by the marriage contract, whether

reciprocally or by one to the other, shall lapse if the marriage does

not take place.

(2) The provisions of this article, however, shall not apply, and

the donee may retain the things given, if the marriage does not take

place by reason of the refusal of the donor without just cause to

contract such marriage; saving the right of the donee to claim

damages under the provisions of the Promises of Marriage Law.

1810. (1) Any donation made by one of the spouses to the

other spouse during the marriage, without the authority of the

court, is null, even if such donation is reciprocal or remuneratory.

(2) If there be such authority, however, one of the spouses may

make to the other spouse, a donation of present property, or of

present and future property, or of such property as the donor may

leave at the time of his death; and to any such donation the

provisions of article 1806 shall apply.

1811. Any donation made without the authority of the court by

one of the spouses to a person related to the other spouse by

consanguinity or affinity, is likewise null.

1812. The authority of the court mentioned in the last two

preceding articles shall not be required with regard to presents or

manual gifts of small value, regard being had to the circumstances

of the donor.

Sub-title VI

O F THE R EDUCTION OF D ONATIONS

1813. Donations of any kind, even if made in contemplation of

marriage to future spouses and to the children to be born of their

marriage, shall, if at the time of the opening of the succession of

the donor they are found to exceed the portion of property whereof

the donor, according to the rule laid down in article 614, could

dispose, be reduced to that portion.

1814. The rules laid down in article 621 and in article 647 and

the articles following, relating to the reduction of testamentary

dispositions, shall also be observed with regard to the reduction of

donations.

1815. The reduction of donations can only be demanded by those

for whose benefit the law has reserved a portion of the property of

the deceased, and by their heirs or other persons claiming under

them.

1816. Saving the provisions of article 1240 the persons to whom

the law grants the right to demand the reduction of donations,

cannot waive such right during the lifetime of the donor, whether

by an express declaration or by consenting to such donations.

1817. Donees, legatees, or creditors of the deceased cannot

demand the reduction of donations or benefit by it.

1818. No reduction of donations can take place until the value of

all the property disposed of under the will has been exhausted; and

when such reduction takes place, it shall be made commencing with

the last donation and so on successively, from the last to the

previous donations.

1819. Any restitution of things under the provisions of the last

preceding article, shall be made in kind, saving the provisions of

article 653.

1820. The donee shall restore the fruits of such part of the

donation as exceeds the disposable portion, from the day of the

opening of the succession of the donor, if the action for reduction

has been brought within the year; otherwise, from the day of the

demand.

1821. The immovable property which is to be returned in

consequence of the reduction shall be free from any debt or

hypothec with which it may have been charged by the donee.

1822. (1) The action for reduction or for recovery may be

brought by the person to whom it is competent, against third parties

in possession of the immovable property forming part of the

donations and alienated by the donees, in the same manner and in

the same order as if against the donees themselves, but not until the

plaintiff has first discussed the donees.

(2)

Such action shall be exercised according to the order of the

dates of the alienations, commencing with the last.

1823. (1) The action for reduction or recovery, whether against

the donees or against third parties, shall be barred by prescription

on the lapse of five years to be reckoned from the day of the

opening of the succession.

(2) The aforesaid time shall also run against minors and

persons interdicted.

Title XV

O F L OAN FOR US E OR C OMMODATUM

1824. Commodatum or loan for use, is a contract whereby one of

the parties delivers a thing to the other, to be used by him,

gratuitously, for a specified time or purpose, subject to the

obligation of the borrower to restore the thing itself.

1825. All things which are not extra commercium and which are

not consumed by use may form the subject of this contract.

1826. The obligations undertaken in virtue of a loan for use shall

pass to the heirs of the lender and of the borrower

Provided that if the loan is made out of regard to the borrower,

and only to him personally, his heirs cannot continue to enjoy the

thing lent.

1827. (1) The borrower is bound to take care of and preserve

the thing borrowed as a bonus paterfamilias.

(2) He cannot, under pain of paying damages, apply the thing

to any other use than that for which it is intended by its nature or by

agreement.

1828. If the thing perishes by a fortuitous event, without the

fault of the borrower, the borrower is not liable for any indemnity.

1829. If the borrower uses the thing for another purpose or for a

longer time than he ought, he shall be answerable for the loss which

may occur even by a fortuitous event, unless he proves that the

thing would have equally perished if he had not used it for another

purpose, or had restored it at the time fixed in the contract.

1830. If the thing lent perishes by a fortuitous event from which

the borrower could have preserved it by making use of his own

thing instead of the thing borrowed, or if, being able to save only

one of the two things, he has preferred to save his own, he is

answerable for the loss of the other.

1831. A valuation of the thing, made at the time of the loan, shall

have no other effect except that of determining its value at that

time, in case the borrower should be answerable for any loss which

may occur; and the borrower shall not, merely because the thing

was appraised at the time of delivery, be answerable for any loss

resulting from a fortuitous event, unless it is otherwise shown that

an agreement to the contrary was made.

1832. If the thing has deteriorated merely by the use for which it

was lent, and without fault of the borrower, the borrower is not

answerable for such deterioration.

1833. If in order to be able to make use of the thing lent, the

borrower has incurred any expense, he cannot claim the

reimbursement thereof.

1834. If several persons have borrowed the same thing together,

they are jointly and severally liable to the lender.

1835. (1) The lender cannot take back the thing until after the

expiration of the time agreed upon, or, in the absence of an

agreement, until it has served the purpose for which it was

borrowed.

(2) Nevertheless, if during the time agreed upon, or before the

borrower has ceased to need the thing, the lender happens to be in

pressing and unforeseen need of making use of the thing, the court

may, according to circumstances, compel the borrower to restore it

to him subject to the obligation of the lender to reimburse to the

borrower any expenses which the latter may have incurred to make

use of the thing.

1836. If, during the continuance of the loan, the borrower had to

incur, for the preservation of the thing, any extraordinary and

necessary expenses of so urgent a nature that he was unable to give

previous notice thereof to the lender, the latter shall be bound to

reimburse such expenses to him.

1837. When the thing lent has defects that may cause injury to

the person making use of it, the lender is answerable for damages,

if he knew of such defects and did not warn the borrower.

1838. (1) If any question shall arise as to whether the loan of a

thing is by way of a loan for use, or by way of letting and hiring,

the person claiming a reward must prove his right thereto by

express or tacit agreement.

(2) A tacit agreement may be inferred from the condition of the

parties, the quality of the thing, the prolonged use thereof and other

circumstances.

Title XVI

O F P RECARIOUS L OAN OR P RECARIUM

1839. Precarious loan or precarium is the same contract of loan

for use defined in article 1824 with the only difference that the

lender has the power to take back the thing when he pleases.

1840. The borrower of a thing by way of precarium cannot delay

the restitution thereof, when demanded, on the ground of any

prejudice which he might sustain thereby

Provided that if it appears that the restitution is demanded with

intent to cause injury to the borrower, the court shall have power to

grant him time for such restitution.

1841. Saving the provisions of the last two preceding articles,

the rules laid down with regard to the contract of loan for use, shall

apply to the contract of precarious loan.

Title XVII

L OAN FOR C ONSUMPTION OR M UTUUM

1842. Mutuum or loan for consumption is a contract whereby one

of the parties delivers to the other a certain quantity of things which

are consumed by use subject to the obligation of the borrower to

return to the lender as much of the same kind and quality.

1843. In virtue of such a loan, the borrower becomes the owner

of the thing lent, and the loss of such thing falls upon him, in

whatever manner it may have occurred.

1844. (1) The liability resulting from a loan of money is, in all

cases, for the same numerical sum stated in the contract.

(2) Notwithstanding any agreement to the contrary, if any

change occurs in the monetary system before the expiration of the

time for payment, the debtor is only bound to return the numerical

sum which was lent to him, in coins according to their legal value

at the time of payment.

1845. It may be stipulated that the restitution shall be made in a

determinate species of coin; and in any such case restitution shall

be made in the manner agreed upon, provided that if at the time of

pay ment no such coi ns can be fo und o r th ey are put out of

circulation, the borrower shall be bound to return the sum to the

lender in current coin, and to pay damages, if any.

1846. Where the loan is of ingots or goods, the debtor is, in all

cases, bound to return the same quantity and quality, whatever may

be the rise or fall in their price.

1847. The provisions of article 1837 shall also apply to mutuum.

1848. (1) If it is not possible for the borrower, without serious

prejudice, to return the things borrowed in the same quantity and

quality at the time agreed upon, he is obliged to pay the value

thereof, regard being had to the time and place at which they were

to be returned.

(2) If the time and place have not been fixed, the payment shall

be made according to the current price at the time and place at

which the loan was made.

1849. No interest is due in respect of mutuum unless agreed

upon, saving the provisions of articles 1139 and 1140 where the

borrower does not return the things borrowed at the time agreed

upon, or at the time which, in the absence of an agreement, is fixed

by the court.

1850. (1) It shall be lawful to stipulate for interest on a loan,

whether of money or of goods or other movable things.

(2) It shall also be lawful to convert into a new capital at

interest, the amount of interest due, provided such interest be not

due for a time less than one year.

(3)

Any other agreement for payment of interest on interest, is

null.

1851. (1) The borrower who has paid interest which was not

agreed upon, can neither claim it back nor deduct it from the

capital, except in so far as such interest exceeds the rate fixed in the

next following article.

(2) Nevertheless, the interest paid on any amount of interest

due for a time less than one year, may be claimed back or deducted

from the capital, even though the interest so paid does not exceed

the said rate.

1852. (1) The rate of interest cannot exceed eight per cent per

annum.

(2)

Any higher interest agreed upon shall be reduced to the said

rate.

(3) If a higher interest than that fixed by law has been paid, the

excess shall be deducted from the capital.

1853. Any contract, whatever its designation, made in evasion of

the provisions of the last preceding article, is subject to rescission;

and in any such case, if the things given cannot be returned, the

creditor can only demand the payment of their value at the time

when he delivered them to the debtor.

1854. If the borrower has bound himself to pay interest without

fixing the rate, interest shall be at the rate of five per cent per

annum.

1855. An acquittance for the capital, given without any

reservation as to the interest, creates a presumption of the payment

of the interest, and operates as a discharge thereof, saving any

proof to the contrary.

1855A. The Minister in conjunction with the Minister

responsible for finance may make regulations prescribing the

conditions under which debts and obligations as designated by the

same regulations may be exempted from any of the provisions of

Title IV and Title XVII of Part II of Book Second subject to such

conditions as he may in such regulations establish, and further

regulating the charging of interests, the compounding of interests in

all respects and the maximum amount of interest that may become

payable.

Title XVIII

O F M ANDATE

Sub-title I

O F THE N ATURE AND F ORM OF M ANDATE

1856. (1) Mandate or procuration is a contract whereby a

person gives to another the power to do something for him.

(2) The contract is not perfected until the mandatary has

accepted the mandate.

1857. (1) Every mandate must have for its object something

lawful which the mandator might have done himself.

(2) Subject to any other special provision of the law, a mandate

can be granted by a public deed, by a private writing, by letter, or

verbally, or even tacitly.

(3) An irrevocable mandate granted by way of security as

specified in article 1887(1) shall be granted in writing on pain of

nullity.

1858. The acceptance on the part of the mandatary may also be

tacit, and may be inferred from acts.

1859. Any person carrying on trade or exercising a profession

who, without just cause, fails to give notice to the mandator,

without delay, of his refusal to accept a mandate relating to

commercial or to professional business, as the case may be, is

answerable to the mandator for damages occasioned by the delay.

1860. If a mandate is granted by a private writing, the name of

the mandatary may be left in blank; in which case, so long as the

name is not written, the bearer of the writing or of the instrument or

procuration shall be deemed to be the mandatary.

1861. Mandate is gratuitous, unless there is a stipulation to the

contrary.

1862. Mandate is either special, if it is for one matter or for

certain matters, only; or general, if it is for all the affairs of the

mandator.

1863. (1) A mandate made out in general terms applies only to

acts of administration.

(2) The power to make alienations of property, except such

alienations as fall within the limits of the administration, or to

hypothecate property or to perform other acts of ownership, must

be expressed.

1864. A mandatary cannot do anything beyond the limits of the

mandate.

1864A. (1) A mandate given by a person of full age in

anticipation of his incapacity to a mandatary, for the latter to take

care of the mandator or to administer his property shall be drawn,

under pain of nullity by a notary public in the presence of two

witnesses in accordance with the requirements of article 655(1) of

this Code, after having obtained a medical declaration that

circumstances so require in the best interests of that person. This

mandate shall be registered in the same manner as any one of the

acts mentioned in article 50 of the Notarial Profession and Notarial

Archives Act.

(2) In the case of a person of full age, performance of the

mandate shall be conditional upon the occurrence of the incapacity

and after obtaining the necessary approval from the court of

voluntary jurisdiction upon application by the mandatary

designated in the act. The court of voluntary jurisdiction may

impose those conditions that it may deem necessary.

(3) (a) For the purpose of termination of the mandate, that

termination has to be drawn by a notary public in the

same manner as the mandate was constituted and the

termination shall be accompanied by a sworn medical

certificate which confirms that the incapacity has

ceased and that termination has to be approved by the

court of voluntary jurisdiction. That termination shall

be registered in the same manner as any one act

mentioned in article 50 of the Notarial Profession and

Notarial Archives Act.

(b) Such termination shall be communicated or notified,

as the case may be, to the mandatary who shall be

bound to cease from representing the mandator with

immediate effect. The registrar of the court of

voluntary jurisdiction shall send a copy of the

termination approved by the court of voluntary

jurisdiction to the Chief Notary to Government who

shall enter the particulars of such termination in a

register held by him for the purpose and which shall be

accessible to the public during office hours.

(c) If the mandatary continues to represent the mandator

after the termination has been communicated or

notified to him, the mandatary shall be held personally

responsible for damages and shall be considered as

acting in contravention of this article.

(4) The provisions of sub-title II of Title XVIII of Part II of

Book Second of the Code shall, mutatis mutandis, apply to a

mandatary appointed in terms of this article.

1865. (1) For the carrying out of the mandate, the mandatary

may institute legal proceedings; make and prosecute appeals; make

proof by reference to the oath of his adversary; take the oath in

litem or the suppletory oath; enforce judgments both on movable

and immovable property; make demand for the issue of

precautionary acts including those for the issue of which an

application or declaration on oath is required; make demand for the

personal arrest of the debtor of the mandator, where such demand is

competent; and do any other thing which the mandator might do

personally, notwithstanding that such powers have not been

expressly given in the mandate.

(2) The mandatary may also, in virtue of the said powers, be a

defendant on behalf of the mandator, in any law-suit concerning the

matter included in the mandate.

1866. A mandatary, however, may not sue or be sued, on behalf

of the mandator, although the latter shall have given him authority

to do so, when the mandator himself is not absent from the Island in

which the action is to be tried, saving the provisions of article 786

of the Code of Organization and Civil Procedure: provided that a

mandatary under an irrevocable mandate granted by way of

security may sue on behalf of the mandator irrespective of this

provision in order to protect or enforce the interests secured by the

mandate.

1867. (1) The express power to compromise does not include

the power to submit to arbitration or vice versa.

(2) The power to receive includes the power to give

acquittance.

(3)

The power to sell includes the power to receive the price.

1868. Where a person has been employed to do something in the

ordinary course of his profession or calling, without any express

limitation of power, such person shall be presumed to have been

given power to do all that which he thinks to be necessary for the

carrying out of the mandate, and which, according to the nature of

the profession or calling aforesaid, may be done by him.

1869. Minors may be appointed mandataries; but in any such

case the mandator cannot maintain an action against the mandatary

except i n accordance with the general rules relating to the

obligations of minors.

1870. (1) The mandator can, for the execution of a contract, act

directly against the person with whom the mandatary in his

capacity as such has contracted.

(2) The powers of the mandator in relation to the subject matter

of the irrevocable mandate by way of security may be suspended by

express agreement for the duration of the mandate.

(3) Such mandates may be registered in a public register. In

this article "public register" means

(a) where the subject matter of the mandate is a ship or

rights related or connected therewith, the Register of

Maltese Ships and by means of an annotation;

(b) where the subject matter of the mandate is an aircraft

or an aircraft engine or rights related or connected

therewith, the National Aircraft Register and by means

of an annotation; and

(c) in all other cases, the Public Registry by means of a

note,

and in such case it shall have effect in relation to third parties and

any exercise of any such powers by the mandatary as are suspended

shall not have any effect except when done with the written consent

of the mandatary.

1871. (1) When the mandatary has acted in his own name, the

mandator cannot maintain an action against those with whom the

mandatary has contracted, nor the latter against the mandator.

(2) In any such case, however, the mandatary is directly bound

towards the person with whom he has contracted as if the matter

were his own.

1871A. (1) Any person holding property for another holds

property subject to fiduciary obligations to the person engaging

him for such purpose and shall be regulated by the provisions of

this title and by the provisions of this Code relating to fiduciary

obligations.

(2) Where such person acquires property in his own name but

on behalf of a mandator, the mandator shall at all times be entitled

to demand the immediate and unconditional transfer thereof from

the mandatory. The mandatory shall on such demand or, in any

case, on the expiration of the time during which the mandate was to

continue, immediately render account of his mandate in terms of

article 1875 and transfer the property to the mandator by such

means as may be appropriate, saving any special terms of the

mandate relating to fees and expenses and rights of any third party

in good faith.

(3) Notwithstanding article 1886, a mandate in favour of a

person acting in terms of this article shall not lapse -

(a) on the death of the mandator and shall continue to bind

the mandatory to preserve the property and all rights

related thereto until such time as the property held by

him is validly transferred to the heirs or legatees of the

mandator; and

(b) on the bankruptcy of the mandator or the mandatory

and shall continue to bind the mandatory to preserve

the property and all rights related thereto until such

time as the property held by him is validly transferred

as directed by the competent court for the benefit of

the mandator or of the creditors of the mandator, as the

case may be.

(4) A term of the mandate purporting to bind a mandatory as

referred to above to transfer the property held by him to a third

party after the death of the mandator shall not be valid unless such

bequest be made by means of a will in accordance with the

formalities required by law.

(5) In the event of the death of the mandatory, the heirs at law

or the executor, if any, of the will of the mandatory shall be bound

by the same obligations to preserve the property held for the

mandator and to immediately transfer it to him or as he may

instruct, saving such rights to the payment of outstanding dues and

expenses according to law.

(6) Notwithstanding the provisions of article 1871(1), in cases

where a mandatory, as referred to above, brings, by any means, to

the attention of any third party the fact that he is acting in such

capacity, the mandatory shall not be personally liable for the

obligations entered into other than with and to the extent of the

property held by him.

1872. The provisions of this Code shall not affect the provisions

of the Commercial Code, or of any other special law or other

usages of trade.

Sub-title II

O F THE O BLIGATIONS OF THE M ANDATARY

1873. (1) A mandatary is bound to carry out the mandate so

long as he is vested therewith, and in case of non-performance he is

answerable for damages and interest.

(2) He is also bound to conclude any matter, which he may

have commenced before the death of the mandator, if delay might

be prejudicial.

1874. (1) A mandatary is answerable not only for fraud, but

also for negligence in carrying out the mandate.

(2) Nevertheless, such liability in respect of negligence is

enforced less rigorously against a person whose mandate is

gratuitous than against one receiving a remuneration.

1875. The mandatary, unless expressly exempted by the

mandator, is bound to render to the latter an account of his

management and of everything he has received by virtue of the

mandate, even if what he has received was not due to the mandator.

1876. (1) The mandatary cannot substitute another person for

himself, if he has not been empowered to do so by the mandator.

(2) If such power has been conferred upon him but without

naming the person to be substituted, the mandatary is answerable

for the person he has substituted if he has selected a person

notoriously incompetent or insolvent or whom he otherwise knew

to be such.

(3) In all cases, the mandator may act directly against the

person whom the mandatary has substituted.

1877. (1) Where there are several attorneys or mandataries

appointed by the same instrument, there is no joint and several

liability between them, unless it be expressly so agreed.

(2) Each of such mandataries may validly carry out the

mandate independently of the consent of the other mandataries or

notwithstanding their opposition, unless the mandator has expressly

ordered that one shall not act without the other, or has otherwise

expressly specified their duties.

(3) The limitation of powers of each of the aforesaid

mandataries may not be set up against third parties, unless such

limitation appears from the instrument of procuration, or unless it

is shown that such third parties have otherwise had sufficient

knowledge of such limitation.

1878. A mandatary owes interest on the sums which, without the

authority of the mandator, he has applied to his own use, from the

day on which he has made such use, and on any other sum in which

he shall remain debtor, from the day on which he is put in default,

saving, in both the aforesaid cases, the usages of trade.

1879. A mandatary who has given to the party with whom he has

contracted in such capacity sufficient information as to his powers,

is not liable for any warranty in respect of what he has done beyond

such powers, unless he has personally bound himself thereto.

Sub-title III

O F THE O BLIGATIONS OF THE M ANDATOR

1880. (1) A mandator is bound to carry out the obligations

contracted by the mandatary in accordance with the powers which

he has given him.

(2) He is not liable for what the mandatary has done beyond

such powers, unless he has expressly or tacitly ratified it.

1881. (1) The mandator must repay to the mandatary the

advances and expenses made or incurred by him in carrying out the

mandate; and he must pay him the remuneration if promised to him,

or if it is presumed to have been tacitly agreed upon, regard being

had to the profession of the mandatary and to other circumstances.

(2) If no negligence be imputable to the mandatary, the

mandator cannot refuse to make such reimbursement and payment,

even though the matter has not been successful; nor can he have the

amount of such expenses and advances bona fide incurred or made,

reduced, on the ground that they might have been less.

1882. The mandator must also indemnify the mandatary for the

losses he has sustained by reason of the mandate, where no

negligence is imputable to him.

1883. Interest is due by the mandator to the mandatary on the

advances and expenses mentioned in article 1881 from the day of

the payment of such sums.

1884. Where the mandatary has been appointed by several

persons for a common business, each of them is jointly and

severally liable towards him for all the consequences resulting from

the mandate.

1885. The mandatary shall have the right of retention, so long as

he is not paid what is due to him in consequence of the mandate.

Sub-title IV

O F THE WAYS IN WHICH M ANDATE IS T ERMINATED.

1886. (1) Mandate is terminated -

(a) by the revocation of the procuration;

(b) by the death, the interdiction or the incapacitation,

whether general or special, from entering into

contracts, the declaration of bankruptcy, or the cessio

bonorum either of the mandator or of the mandatary;

(c) by the termination of the powers of the mandator;

(d) by the expiration of the time during which the mandate

was to continue;

(e) by the renunciation on the part of the mandatary

Provided that

(i)

in the case of the termination of a mandate

whereby the mandatory, being a physical person,

has been empowered to transfer immovable

property on behalf of the mandator or where the

mandate is one of a general nature given

between physical persons, such termination may

be notified by the mandator or by any other

person having an interest in the mandate to the

Chief Notary to Government who will enter the

particulars of such termination in a register held

by him for the purpose and which shall be

accessible to the public during office hours; and

(ii) the Minister shall have the power to issue

regulations to establish an electronic register

where the registration of mandates and their

termination may be made and to establish such

formalities, fees and applicable procedures for

registration in the said electronic register and to

regulate access to the said register.

(2) An irrevocable mandate by way of security shall not

terminate upon the events stated in sub-article (1) and shall

continue to be binding on, or continue for the benefit of, the heirs

or liquidator (or similar officer) of the mandator, or of the

mandatary, or the creditor if a different person, in accordance with

its terms. Neither shall such an irrevocable mandate terminate on

such events when they occur in relation to a mandatary who is a

different person than the creditor in whose favour the mandate has

been granted.

(3) The creditor whose interests are secured through the

mandate, or his heirs, or liquidator (or similar officer), may appoint

a substitute to act as mandatary, including himself, or may apply to

the Court of voluntary jurisdiction to make such appointment.

1887. (1) The mandator may revoke the mandate whenever he

chooses, unless the mandate is expressly stated to be granted by

way of security in favour of the mandatary or of any other person,

and that it is irrevocable, in which case it may only be revoked with

the consent of the person whose interest is secured thereby. The

mandatary under such an irrevocable mandate granted by way of

security, shall be bound to act in a fair and reasonable manner when

exercising the powers granted thereunder, provided that a mandate

by way of security which is irrevocable may only be granted when

the object to which it relates is property which is movable, by

nature or by operation of law, and it shall not be permissible for

such a mandate to be issued with reference to immovable property

or rights therein.

(2) Where powers are exercised under an irrevocable mandate

granted as stated above and form part of or are granted pursuant to

or in the context of a written agreement governing a broader

relationship, the mandatary shall furthermore be bound to exercise

such powers in accordance with the terms and subject to the

conditions of such agreement.

(3) Except as provided in the preceding sub-article, the

appointment of a new mandatary for the same business is

equivalent to a revocation of the mandate given to the previous one,

even though the new mandatary does not accept the mandate.

(4) A general mandate does not produce the revocation of a

special mandate previously given, unless the business contemplated

in the special mandate is expressly included in the general mandate.

1888. (1) The existence of any of the causes for which a

mandate is terminated cannot be set up against third parties who,

having no knowledge of such cause, have contracted with the

mandatary; saving the right of the mandator to seek relief against

the mandatary, where competent.

(2) Nor may the existence of any such cause be set up against

the mandatary, if at the time of acting he also had no knowledge

thereof.

1889. (1) A mandatary may renounce the mandate by giving

notice of his renunciation to the mandator.

(2) Nevertheless, if the renunciation is prejudicial to the

mandator, he must be compensated by the mandatary, unless it is

impossible for the latter to continue to carry out the mandate

without suffering himself considerable prejudice.

1890. In case of the death of the mandatary, his heirs must, if

they know that he was a mandatary, give notice thereof to the

mandator, and attend, in the meantime, to what is required in the

interest of the latter, as circumstances may demand.

Title XIX

O F D EPOSIT

1891. Deposit, in general, is a contract whereby a person

receives a thing belonging to another person subject to the

obligation of preserving it and of returning it in kind.

Sub-title I

O F D EPOSIT PROPERLY SO CALLED

1892. (1) Deposit properly so called is a gratuitous contract,

saving any stipulation to the contrary.

(2)

Only movable things can be the subject of such deposit.

1893. (1) A deposit is only perfected by the delivery of the

thing to the depositary.

(2) The delivery is effected by the consent alone, if the thing is

already in the hands of the depositary by any other title and it is

agreed that it is to remain in his hands as a deposit.

1894. A deposit of money or of other things which are consumed

by use, is regulated by the laws relating to loan for consumption or

mutuum, whenever power has been granted to the depositary to

make use of the thing deposited on the sole condition of returning

as much of the same kind and quality.

1895. Deposit is voluntary or necessary.

§ I. O F V OLUNTARY D EPOSIT

1896. A voluntary deposit takes place by the mutual consent of

the person who makes the deposit and of the person who receives

the thing on deposit.

1897. (1) A voluntary deposit can only take place between

persons who are capable of contracting.

(2) Nevertheless, if a person capable of contracting accepts a

deposit made by a person who is incapable, the former is bound by

all the obligations of a true depositary.

1898. If the deposit has been made by a person who is capable of

contracting to another who is not, the person who has made the

deposit cannot but claim the recovery of the thing deposited so long

as it exists in the hands of the depositary, or bring an action for

restitution to the extent of the benefit accruing in favour of the

latter.

O F THE O BLIGATIONS OF THE D EPOSITARY

1899. A depositary must, for the custody of the thing deposited,

use the same diligence which he uses for the custody of his own

things.

1900. (1) The provisions of the last preceding article shall be

applied more rigorously -

(a) if the depositary has himself offered to receive the

deposit;

(b) if he has stipulated for a reward for the custody of the

deposit;

(c) if the deposit has been made solely in the interest of

the depositary;

(d) if it has been expressly agreed that the depositary shall

be answerable for every kind of negligence.

(2) In each of the cases referred to in paragraphs (a), (b) and (c)

of sub-article (1) of this article, the provisions of sub-article (1) of

article 1132 shall apply; and in the case referred to in paragraph (d)

of the same sub-article, the depositary shall be liable even for the

slightest negligence.

1901. A depositary is in no case answerable for accidents

resulting from irresistible force, unless he has been put in default

for delay in restoring the thing deposited; nor shall he be

answerable, in the latter case, if the thing would have equally

perished in the possession of the depositor.

1902. The depositary cannot make use of the thing deposited

without the express or implied consent of the depositor.

1903. He shall not attempt to discover what are the things which

have been deposited with him, if they have been entrusted to him in

a closed box or under a sealed cover.

1904. (1) The depositary must restore the identical thing

which he has received, in the condition in which it may be at the

time of its restitution.

(2) Any deterioration which occurs through no fault of the

depositary, shall be borne by the depositor.

1905. A depositary from whom the thing deposited has been

taken away by irresistible force, and who has received a sum of

money or some other thing in its place, must restore what he has

received.

1906. The heir of the depositary who has sold in good faith a

thing which he did not know to be a deposit, is only bound to return

the price which he has received, or to assign his right of action

against the buyer if the price has not been paid to him.

1907. If the thing deposited has produced fruits which have been

collected by the depositary, he is obliged to restore them.

1908. The depositary must restore the thing deposited only to the

person who has entrusted it to him, or to the person in whose name

the deposit has been made, or to the person who has been appointed

to receive back the thing.

1909. (1) The depositary cannot require the depositor to prove

that he is the owner of the thing deposited.

(2) Nevertheless, if the depositary discovers that the thing has

been lost or stolen, he must inform the person from whom it was

stolen, or who lost it, of the deposit which has been made with him,

allowing him a sufficient time to claim such deposit. If the person

so informed fails to claim the deposit within the said time, the

depositary is released by delivering the deposit to the person from

whom he has received it.

1910. In case of death of the depositor, the thing deposited can

only be restored to his heir.

1911. If there are several heirs, or if otherwise the thing

deposited belongs to several persons the depositary may not restore

the thing except with the concurrence of all of them, unless the

share of each is determined.

1912. If the status of the person who has made the deposit has

changed, as for instance, if a person of age who made the deposit

has been interdicted, in all such and similar cases, the depositary

who knows of such change of status, cannot restore the deposit

except to the person who has the administration of the rights and

property of the depositor.

1913. If the deposit has been made by a tutor or curator, or by a

spouse or an administrator, in any of such capacities, it cannot be

restored except to the person whom such tutor, curator, spouse or

administrator represented, if their administration has terminated

and the depositary knows of such termination.

1914. (1) The restitution of the deposit must be made at the

place where the thing deposited exists. If another place has been

specified in the contract, the depositary is bound to take the thing

to such place.

(2)

The expenses of removal shall be borne by the depositor.

1915. The deposit must be restored to the depositor as soon as he

demands it, even though the contract has fixed a time for the

restitution, unless there is opposition to its restitution, by a

garnishee order or a judicial demand.

1916. (1) The depositary may compel the depositor to

withdraw the deposit.

(2) He cannot, however, without just cause, compel him to

withdraw the deposit before the time agreed upon.

1917. All the obligations of the depositary cease, if he discovers

and proves that he himself is the owner of the thing deposited.

O F THE O BLIGATIONS OF THE D EPOSITOR

1918. The depositor is bound to reimburse to the depositary the

expenses which the latter has incurred for the preservation of the

thing deposited and to make good to him all the losses which the

deposit may have occasioned him.

1919. The depositary may retain the deposit until full payment of

what is due to him by reason of such deposit.

§ II. O F N ECESSARY D EPOSIT

1920. A necessary deposit is that which a person is compelled to

make owing to some calamity, as, for instance, in case of a fire,

destruction, pillage, shipwreck or other unforeseen emergency.

1921. All other provisions relating to voluntary deposit shall

also apply to necessary deposit.

Sub-title II

O F C ONVENTIONAL S EQUESTRATION

1922. (1) Conventional sequestration is the deposit of a thing

in dispute made in the hands of a third party who binds himself to

restore it, after the controversy is terminated, to the person to

whom the thing shall be declared to belong.

(2) The subject of a conventional sequestration may be

movable as well as immovable property.

1923. The sequestrator cannot be released before the controversy

is terminated, except with the consent of the persons who have

entrusted the thing to him, or for a just cause.

1924. The provisions relating to voluntary deposit shall apply to

conventional sequestration.

Title XX

O F S URETYSHIP

Sub-title I

O F THE N ATURE AND E XTENT OF S URETYSHIP

1925. Suretyship is a contract whereby a person binds himself

towards the creditor to satisfy the obligation of another person, if

the latter fails to satisfy it himself.

1926. (1) Suretyship can only exist in respect of a valid

obligation.

(2) Nevertheless, suretyship may be contracted for an

obligation which can be annulled on some plea personal to the

debtor, as for instance, that of disability arising from minority or

interdiction.

1927. (1) Suretyship cannot exceed what is due by the debtor,

nor be contracted under more onerous conditions.

(2) It may be contracted for a part only of the debt, and under

less onerous conditions.

(3) The suretyship which exceeds the debt or is contracted

under more onerous conditions shall only be valid to the extent of

the principal obligation.

1928. (1) Any person may become surety without the request

and even without the knowledge of the party for whom he binds

himself.

(2) A person may also become surety, not only for the principal

debtor, but also for his surety.

1929. Suretyship cannot be presumed, it must be expressed; and

it cannot be extended beyond the limits within which it has been

contracted.

1930. (1) A suretyship contracted for a principal obligation, in

general terms, extends to all accessories of the debt.

(2) It also extends to the expenses necessarily incurred for

obtaining payment provided the creditor, before commencing the

proceedings giving rise to such expenses, gives notice thereof to

the surety, by means of a judicial act.

(3) The expenses of such act are included in the expenses to

which the suretyship extends.

1931. A debtor who is obliged to produce a surety must offer a

person who is capable of entering into contracts, who has sufficient

property to answer for the subject-matter of the obligation, and

whose domicile is in Malta.

1932. (1) When a surety accepted by the creditor, whether

voluntarily or by order of the court, afterwards becomes insolvent,

the debtor must produce another.

(2) An exception to this rule is made only where the surety has

been given in virtue of a covenant by which the creditor has

required that particular person as surety.

1933. Repealed by article 83 of Act XX1 of 1993.

Sub-title II

O F THE E FFECTS OF S URETYSHIP

§ I. O F THE E FFECTS OF S URETYSHIP AS BETWEEN C REDITOR

AND S URETY

1934. The surety is only bound to pay in the event of the default

of the principal debtor whose property must first be discussed.

1935. The benefit of discussion shall not apply -

(a)

if the surety has renounced such benefit;

(b) if the surety has bound himself, jointly and severally,

with the debtor;

(c) if the debtor can set up a personal plea, such as those

mentioned in article 1926;

(d) if the debtor has become insolvent.

1936. When the benefit of discussion has been admitted, the

creditor is, to the extent of the property stated in the list produced

in accordance with the provisions contained in Sub-title VIII of

Title II of Book Third of the Code of Organization and Civil

Procedure, liable towards the surety for the insolvency of the

principal debtor which has supervened in consequence of the

creditor himself having delayed the institution or proceedings or

the prosecution with due diligence of the proceedings commenced.

1937. (1) When several persons have become sureties for the

same debtor and the same debt, each one shall be liable for the

whole debt.

(2) Nevertheless, each one of them may, unless he has

renounced the benefit of division, or unless he has bound himself

jointly and severally with the debtor, demand that the creditor

should divide his action and reduce it to the share due by each

surety.

1938. If, at the time when one of the sureties has obtained such

division, some of them are insolvent he is liable proportionately for

the shares of those who are insolvent; but no claim can be made

against him in respect of the share of any other surety who becomes

insolvent subsequently to the division.

1939. If the creditor has himself voluntarily divided his action,

he may not repudiate such division, even though there were

insolvent sureties previously to the time when he consented to such

division.

1940. A surety for the surety is not liable towards the creditor,

except where the principal debtor and all the sureties are insolvent,

or have been released consequent on some plea personal to the

debtor and to the sureties.

1941. In commercial matters, the surety is always, in the absence

of an agreement to the contrary, presumed to be bound jointly and

severally with the debtor.

§ II. O F THE E FFECTS OF S URETYSHIP AS BETWEEN D EBTOR

AND S URETY

1942. (1) A surety who has paid has a right to relief against the

principal debtor, whether the suretyship has been contracted with

the consent of the debtor or without his knowledge.

(2) This right of relief shall extend both to the capital and to

the interest and expenses

Provided that with regard to expenses, the surety has no right to

relief except for those incurred after he has, by means of a judicial

act, given notice to the principal debtor of the molestations which

he has sustained.

1943. (1) He may also claim relief for interest on any sum that

he has paid for the debtor, although the debt did not yield interest,

as well as for damages, if any.

(2) The interest, however, which was not due to the creditor,

does not run in favour of the surety, except from the day on which

the latter shall have, by means of a judicial act, given notice to the

debtor of the payment made.

1944. If the suretyship has been contracted against the will of the

debtor, the surety shall not be entitled to relief against the debtor

except to the extent of the advantage accruing to him.

1945. A surety who has paid the debt succeeds ipso jure to all the

rights which the creditor had against the debtor; saving always the

provisions of article 1167 where a part only of the debt has been

paid.

1946. When there are several principal debtors jointly and

severally bound for the same debt, the person who stands surety for

all of them, has against each one of them a right of relief for the

whole of the amount he has paid.

1947. (1) A surety has no right to relief against the principal

debtor, if the latter, not having been notified by the surety of the

payment made by him, pays as well.

(2) A surety who has paid without having notified the principal

debtor, has no right to relief against the latter, if, at the time of the

payment, the debtor was in possession of such means as would have

enabled him to have the debt declared extinct.

(3) In each of the aforesaid cases the right of the surety to an

action for recovery against the creditor remains unimpaired.

1948. A surety, even before paying, may proceed against the

debtor to be indemnified by him -

(a) if he has been sued for payment;

(b) if the debtor has become bankrupt or insolvent, or his

condition has altered and there is a reasonable

apprehension of insolvency;

(c) if the debtor has undertaken to release him from the

suretyship within a specified time, and such time has

elapsed;

(d) if the debt has become due by the expiration of the

time agreed upon for payment;

(e) if the debtor is in default for delay in payment;

(f)

at the expiration of two years, where no time has been

fixed for payment, and the obligation is not, of its

nature, such that it cannot be extinguished before a

longer time.

§ III. O F THE E FFECTS OF S URETYSHIP AS BETWEEN

C O-SURETIES

1949. (1) Where several persons have become sureties for the

same debtor and for the same debt, the surety who has paid the

debt, has a right to relief against the other co-sureties for their

respective shares.

(2) The surety is entitled to such relief only if he has paid in

any of the cases mentioned in the last preceding article.

1950. A surety who has discharged the debt may only claim from

each of his co-sureties the amount for which each co-surety is

liable and is himself liable, together with the other co-sureties, for

contribution in respect of the shares of the insolvent sureties, even

though, on paying, he may have obtained from the creditor an

express assignment of the latter’s rights.

Sub-title III

O F L EGAL AND J UDICIAL S URETYSHIP

1951. Where a person is required by law or by an order of the

court to produce a surety, the surety offered m ust have the

qualifications mentioned in article 1931.

1952. A person who cannot find a surety may in lieu thereof give

a pledge or other security sufficient for the discharge of the debt.

1953. A legal or judicial surety cannot demand the discussion of

the principal debtor.

1954. A person who has only bound himself as surety for a legal

or judicial surety may claim the discussion of the latter.

1955. The provisions of this sub-title shall not be in derogation

of the provisions contained in the Code of Organization and Civil

Procedure.

Sub-title IV

O F THE E XTINGUISHMENT OF S URETYSHIP

1956. The obligation which arises from suretyship

is

extinguished for the same causes as all other obligations.

1957. The merger which takes place in the person of the

principal debtor and his surety, when the one becomes the heir of

the other, shall not operate so as to extinguish the right of action of

the creditor against the person who has become surety for the

surety.

1958. A surety may set up against the creditor all the pleas which

appertain to the principal debtor, and which are inherent in the

debt; but he may not set up pleas which are purely personal to the

debtor.

1959. A surety, even if jointly and severally bound, is released,

if the subrogation to the rights, hypothecs, and privileges of the

creditor cannot take place in his favour owing to the fault of the

creditor.

1960. If the creditor releases one of his sureties without the

consent of the others, such release operates in favour of the other

sureties to the extent of the share of the surety so released.

1961. Where the creditor voluntarily accepts immovable or other

property in discharge of the principal debt, the surety is released,

even though the creditor is afterwards evicted from such property.

1962. The mere extension of time granted by the creditor to the

principal debtor does not release the surety, who may, in such case,

proceed against the debtor to compel him to effect payment.

1963. The surety who has limited his obligation to the same term

which was granted to the principal debtor shall continue to be

bound even beyond that term, for all the time which may be

necessary to compel the debtor to effect payment, provided the

creditor, within two months from the expiration of such term,

commences proceedings and prosecutes them with due diligence.

Title XXI

O F C ONTRACTS OF P LEDGE

1964. (1) Pledge is a contract created as a security for an

obligation. The pledge may be given either by the debtor himself or

by a third party for the debtor.

(2) The things that may be given as a pledge are movable

things and debts and other rights relating to movable things.

1965. (1) The pledge of movable things is constituted by the

delivery to the creditor of the thing pledged or of the document

conferring the exclusive right to the disposal of the thing.

(2) The thing pledged or the document aforesaid may also be

delivered to a third party selected by the parties to the contract or

placed in the custody of both parties in such a way that the party

giving the pledge may not dispose of it without the co-operation of

the creditor.

1966. (1) A pledge confers upon the creditor the right to

obtain payment out of the thing pledged with privilege over other

creditors as provided in Title XXIII.

(2) The said privilege exists over the thing pledged only if such

thing or the document relating to it has been delivered or placed in

custody as provided in article 1965 and only so long as such thing

or document remains in the possession of the creditor or of the third

party selected by the parties or in the custody of both parties as

aforesaid.

(3) Where the thing pledged is a debt or other right in respect

of which there is no such document as is referred to in article 1965,

the said privilege shall not arise unless the pledge results from a

public deed or a private writing, and either notice of the pledge has

been given by a judicial act served on the debtor of the debt or

other right or such debtor has in writing acknowledged the pledge.

(4) Where such debt or other right results from a document, the

person giving the pledge shall, except where the document is a

public deed, be bound to deliver the document to the creditor.

1967. If the same debtor contracts another debt with the same

creditor subsequently to the delivery of the thing pledged, the

creditor, in the absence of an agreement to the contrary, shall have,

in respect of the second debt, the same rights on the thing pledged

as are competent to him in respect of the prior debt, even though it

has not been expressly agreed that the pledge should be made liable

for the payment of the second debt.

1968. (1) Where the thing pledged is a debt, the pledgee shall

be responsible for the collection of such debt on maturity, and shall

place the moneys or other things received either as agreed or,

failing such agreement, as the court may determine.

(2) If the debt secured by the pledge is due, the pledgee may

retain, from any moneys received as aforesaid, an amount sufficient

to satisfy his rights and shall deliver the remainder to the pledgor;

and if the thing received is not money, he may proceed with the sale

of the thing as provided in article 1970.

(3) The creditor of a debt secured by the pledge of another debt

may, at any time after his debt becomes due, demand that the debt

pledged in his favour be assigned to him in payment up to the

amount of his debt.

(4) The debtor of a debt given in pledge may oppose to the

creditor of the debt secured thereby all the pleas which he could

have set up against his own creditor; but if such debtor has himself

accepted without reservation the giving of the debt in pledge, he

m a y n o t o p p o se t o t h e c r e d i t o r o f t h e d e b t so s e c u r e d a n y

compensation that may have taken place before the giving of the

pledge.

1969. (1) The thing given as a pledge by a person to whom it

does not belong is validly pledged, and the owner cannot recover it,

except on payment of the debt in respect of which it was pledged.

(2) This provision except as regards Il-Monti shall not apply in

the following cases

(a) when it is shown that the pledgee was in bad faith;

(b) when the thing pledged is proved to have been stolen,

and the pledgor could not, presumably, have been the

owner thereof.

1970. (1) The creditor, unless such creditor be Il-Monti,

cannot dispose of the thing pledged in case of non-payment: but he

may cause the thing to be sold by auction under the authority of the

court.

(2) The demand of the creditor for such sale may be made even

by means of an application and it shall be lawful for the court upon

such application to order the sale of the thing pledged, if the debtor

or his lawful representative, duly served with a copy of such

application with a time of three days within which to file an

answer, fails to file such answer or makes no opposition to the

demand.

(3) It shall be lawful for the court, on good cause being shown,

to abridge at its discretion the times fixed in articles 256 and 312

and in the latter part of sub-article (3) of article 314 of the Code of

Organization and Civil Procedure.

(4) If the thing pledged has a stock exchange or market price, it

shall be lawful for the court, on the application of the creditor, to be

served upon the debtor or his lawful representative, to order that

the sale of the thing pledged, even though such sale be in execution

of a judgment, be carried out, instead of by auction, by means of a

public broker or a bank or other banking institution to be appointed

by the court.

(5) The application referred to in the last preceding sub-article

of this article may not, except where the sale of the pledge is in

execution of a judgment, be made by the creditor until after the

lapse of three days from the service of an intimation, calling upon

the debtor or his lawful representative to pay the debt within the

said time and warning him that in default of payment, proceedings

will be taken for the sale of the pledge.

(6) In no case shall the opposition of the debtor to the sale of

the pledge as provided in sub-article (4) of this article operate so as

to prevent or delay such sale, saving the right of the debtor to

maintain an action for damages, where competent.

(7) In the case referred to in sub-article (4) of this article the

court may, if the creditor is a bank or other banking institution,

authorize such creditor to sell the pledge at the current price, saving

the right of the debtor to maintain an action for damages, where

competent.

(8) The public broker, or the bank or other banking institution

referred to in this article shall, within twenty-four hours from the

receipt of the proceeds of the sale of the pledge, pay such proceeds

into the court by which the sale was ordered, after deducting

therefrom any expenses and commission which may be due.

1971. The debtor also may, after the debt has fallen due, or even

before if the time for payment was not stipulated in favour of the

creditor, demand in the manner prescribed in the last preceding

article the sale of the pledge in order to pay the debt in respect of

which the pledge was given.

1972. The sale of the pledge may be demanded at any time both

by the debtor and by the creditor if it is shown that the thing

pledged can no longer be preserved without deterioration.

1973. Any covenant allowing the creditor to appropriate the

thing pledged, or to dispose of it without complying with the

formalities prescribed in article 1970 or depriving the creditor or

the debtor of the right to demand the sale of the pledge as provided

in articles 1970, 1971 and 1972 is void.

1974. The debtor remains the owner of the thing pledged until he

is divested of the ownership thereof.

1975. (1) The creditor is liable for the loss or deterioration of

the thing pledged resulting from his negligence.

(2) The debtor is bound on his part to refund to the creditor any

expenses which the latter may have incurred for the preservation of

the pledge.

1976. The fruits of the pledge shall be deemed to form a part

thereof, and shall be subject to all the rights of the creditor as the

pledge itself.

1977. (1) If the thing pledged bears interest or yields other

profits, the creditor shall appropriate such interest or profits to the

interest which may be due to him.

(2) If the debt in security of which the pledge was given does

not bear interest, the appropriation shall be made to the principal of

the debt.

(3)

Any covenant contrary to the provision of this article is

null.

1978. In case of abuse of the pledge on the part of the creditor,

the debtor may demand that the thing pledged be deposited with a

third party, in order to safeguard the rights of the creditor and of the

debtor.

1979. The debtor cannot claim the restitution of the thing

pledged until he has wholly paid the principal, interest and

expenses of the debt for which the pledge is liable.

1980. The creditor may, with the consent of the debtor, make use

of the pledge, saving the provisions of article 1977 in case the

creditor should derive an advantage therefrom.

1981. The use of the thing pledged made by the creditor without

the consent of the debtor shall be deemed to be an abuse thereof,

and the creditor shall be liable to the consequences mentioned in

a r t i c l e 1 9 7 8 , a n d s h a l l , m o r e o v e r, b e b o u n d t o m a k e t h e

appropriation referred to in article 1977, if he has derived any

advantage from such use.

1982. The creditor who with the consent of the debtor sub-

pledges the thing which he holds by way of pledge shall continue to

be liable for any loss of or injury to the thing pledged, which is

caused by negligence, as well as for the restitution of the pledge at

the time when such restitution is due.

1983. The creditor who without the consent of the debtor sub-

pledges the thing which he holds by way of pledge, shall be liable

also for any loss or injury caused by a fortuitous event, where the

thing pledged would not have been lost or injured if it had remained

in the possession of the creditor.

1984. If the person to whom the thing has been given by the

creditor by way of sub-pledge, makes use thereof, the provisions of

articles 1980 and 1981 shall apply in favour of the debtor who had

given such thing to the creditor by way of pledge.

1985. (1) A pledge is indivisible, notwithstanding the

divisibility of the debt between the heirs of the debtor or the heirs

of the creditor.

(2) The heir of the debtor who has discharged his share of the

debt cannot demand the restitution of his share of the pledge until

the whole debt has been discharged.

(3) On the other hand, the heir of the creditor who has received

his share of the debt, cannot return the pledge to the prejudice of

the unpaid co-heirs.

1986. The provisions of this Title shall not affect other laws and

usages in force touching the rights of creditors in respect of

advances made on goods, in commercial transactions.

Title XXII

O F A NTICHRESIS

1987. (1) Antichresis is a contract whereby a creditor acquires

the right to collect the fruits of an immovable belonging to his

debtor, subject to his obligation of deducting annually such fruits

from the interest if any be due to him, and then from the principal

of the debt.

(2)

Antichresis can only be created by virtue of a writing.

(3) Any antichresis created by virtue of a public deed before

the 28th February, 1961, for a period exceeding thirty years, is

deemed to be a sale, provided the said public deed is enrolled in the

Public Registry as a transfer by title of sale.

(4) The enrolment referred to in sub-article (3) of this article

may be made at any time by the creditor or by any person deriving

title from the creditor.

1988. (1) The creditor is bound, unless it has been otherwise

agreed, to pay the ground-rent and other burdens to which the

immovable which he holds in antichresis is subject.

(2) He must also provide for the maintenance and the necessary

repairs of the immovable.

(3) All the expenses for the above purposes shall be deducted

from the fruits.

1989. (1) The debtor cannot, before he has wholly satisfied his

debt, resume the enjoyment of the immovable which he has given

by way of antichresis.

(2) Nevertheless, the creditor who wishes to release himself

from the obligations mentioned in the last preceding article, can

always compel the debtor to resume the enjoyment of the

immovable, unless he has renounced such right.

1990. (1) The creditor does not become the owner of the

immovable by the mere default of payment at the time agreed upon;

and any agreement to the contrary is void.

(2) In default of payment, he may sue for the sale of the

immovable by judicial auction according to the provisions of the

Code of Organization and Civil Procedure.

1991. The contracting parties may stipulate that the fruits be set

off against the interest, in whole or in part, even though the interest

agreed upon may thus be exceeded, provided the interest shall not

thereby exceed the rate of eight per cent per annum.

1992. (1) Antichresis may be given by a third party for the

debtor.

(2) The provisions of articles 1979 and 1985 shall also apply to

antichresis.

1993. (1) Nothing in this Title shall affect the rights which

third parties may have on the immovable subject to antichresis.

(2) If the creditor who holds the immovable by way of

antichresis, enjoys, independently of such antichresis, any right of

privilege or hypothec lawfully created on such immovable, he may

exercise such right of privilege or hypothec in the order competent

to him and as any other creditor.

Title XXIII

O F P RIVILEGES AND OF H YPOTHECS

1994. Whosoever has bound himself personally, is obliged to

fulfil his obligations with all his property, present and future.

1995. (1) The property of a debtor is the common guarantee of

his creditors, all of whom have an equal right over such property,

unless there exist between them lawful causes of preference or

there shall have been a transfer of any property by way of security

or a transfer under a security trust for such purpose in accordance

with this Code.

(2) Property is lawfully transferred by way of security, if made

in accordance with article 2095E or articles 2095F to 2095I and

such transfer shall not be subject to re-characterisation as any other

contract.

(3) Creditors of the transferor may impeach any transfer by

way of security as aforesaid if the transfer is made in fraud of their

rights. For the purposes of article 1144 such transfers shall be

considered to be onerous and in case of a security trust, the creditor

must prove fraud on the part of both the transferor and the

transferee but it shall be sufficient if he proves fraud either on the

part of the security trustee or on the part of the beneficiary whose

interest is being secured thereby.

1996. The lawful causes of preference are privileges, hypothecs

and the benefit of the separation of estates.

1996A. (1) It shall be lawful for a creditor to subordinate,

postpone, waive or otherwise modify his existing or future rights of

payment, enforcement, ranking and other similar existing or future

rights in favour of another person.

Such subordinatation, postponement, waiver, modification

or similar action may be made by agreement with or by unilateral

declaration to any person, including another creditor, whether

determined or yet to be determined at the time of the entry of such

agreement or the making of such declaration.

The words "creditor" and "person" as used in this article

shall include a class of creditors or a class of persons, as the case

may be, whether the members of either such class are determinate

or yet to be determined.

(2) Notwithstanding that the right may arise from a public

deed, be registered in a public register or be subject to any other

formality, an agreement or declaration as contemplated by this

article shall be valid and enforceable between the relevant parties if

made in writing without the need of any other formality or

registration

Provided that such agreement or declaration may be

registered by any party to such agreement and by any maker of such

declaration -

(a) at the ship registry by means of an annotation,

(b) at the aircraft registry by means of an annotation,

(c) in all other cases, at the Public Registry by means of a

note,

and in such case it shall have effect in relation to third parties.

(3) Such subordination, postponement, waiver, modification or

other similar action in respect of any existing or future rights may

be governed by a trust instrument in terms of which rights of any

persons, including creditors or debtors, present or future, are

regulated.

(4) Any agreement or declaration as referred to in sub-article

(1) hereof shall be valid and enforceable in accordance with its

terms, and shall not be affected by the insolvency of any person

bound by or entitled under such agreement or unilateral declaration

or of the relevant debtor.

1997. (1) The provisions of this Title shall not affect the right

of retention in cases in which such right is competent according to

law.

(2) The said provisions shall not apply to ships or aircraft, or to

debts to which ships or aircraft may be subject except so far as they

are consistent with the provisions of the Merchant Shipping Act or

of the Aircraft Registration Act, as the case may be.

(3) Nor shall the said provisions apply to debts in respect of

advances made on goods in commercial transactions, except so far

as such provisions are consistent with other existing laws and

usages.

1998. The provisions of this Title excepting those contained in

Sub-title V shall not affect the provisions of previous laws as

regards privileges and hypothecs created before the 11th February,

1870. Sub-title I

O F P RIVILEGES

1999. Privilege is a right of preference which the nature of a debt

co nfers u po n a cred ito r ov er t he oth er cred it ors, i ncl udi ng

hypothecary creditors.

2000. Privileges may exist over movables as well as over

immovables. They are either general or special.

2001. (1) A general privilege extends over all property in

general.

(2) A special privilege affects certain particular movables or

immovables.

2002. (1) Special privileges over movables, except those

specified under sub-article (2), and general privileges as referred to

in article 2003, cease to exist if the property passes into the hands

of a third party.

(2)

Special privileges over immovables and those movables

which the Minister shall, from time to time, establish shall continue

to attach to such immovables or movables whatever transfers to

other persons take place.

§ I. O F G ENERAL P RIVILEGES

2003. The privileged debts over all property in general, are

(a) judicial costs;

(b) funeral expenses;

(c) death-bed expenses;

(d) wages of servants;

(e) supplies of provisions.

2004. (1) The judicial costs which are privileged are the costs

incurred in making up the inventory, or otherwise incurred for the

common benefit of the creditors, including the costs necessary for

carrying out the sale of the property and for distributing the

proceeds thereof.

(2) The costs incurred by a creditor in respect of the debt due to

him and which are not advantageous to the other creditors, are

considered as accessory to the debt itself.

2005. The funeral expenses which are privileged are the expenses

which, according to custom and within the limits of decency, are

incurred in connection with the removal, burial or cremation of the

dead body, and with the religious services.

2006. (1) The death-bed expenses which are privileged are the

charges of the physician, surgeon, obstetrician, midwife or

apothecary, and the expenses incurred for nursing the sick person.

(2) In the case of a chronic illness, the privilege applies only to

the expenses incurred in the last two months preceding the death.

2007. The wages of servants which are privileged are only those

due in respect of the two months preceding the opening of the

competition for the ranking of creditors, or the death of the debtor.

2008. The supplies and provisions which are privileged include

all objects that are necessary for the support of the debtor and his

family, and which shall, for all intents and purposes of law, not

exceed the sum of three thousand and four hundred and ninety-four

euro and six cents (3,494.06) or such other amount as the Minister

may from time to time prescribe

Provided that in the case of a widow or a widower or of

their dependants, the sum shall be five thousand and eight hundred

and twenty-three euro and forty-three cents (5,823.43) or such other

amount as the Minister may from time to time prescribe.

CIVIL CODE

§ II. O F S PECIAL P RIVILEGES

O F P RIVILEGES OVER P ARTICULAR M OVABLES

2009. The privileged debts over particular movables are

(a) the debt due to the pledgee, over the thing which he

holds as a pledge;

(b) the debt due to a hotel-keeper for accommodation

provided or supplies furnished to a guest, over the

effects of such guest, so long as such effects exist in

the hotel or house of the hotel-keeper;

(c) the debt due for the carriage of goods, over the goods

carried;

(d) the debt due in respect of the price of a thing, whether

the sale has been effected with a stipulation as to credit

or without such stipulation; and the debt due for

labour, supplies or expenses, bestowed, furnished or

incurred in the production or for the preservation or

improvement of a thing, over the thing itself, saving,

with regard to the seller, the provisions of article 1439.

This privilege applies also to the debt due to the

advocate and legal procurator for their fees in respect

of the action for the recovery of a thing, over the thing

itself, if recovered; as well as to the debt due to the

person disbursing the expenses incurred in such

action;

(e) the debt due to the dominus for ground-rent, and the

debt due to the lessor for the rent of an immovable,

over the fruits, and over the value of all things which

serve for the furnishing or stocking, or for the

cultivation of the tenement, to whomsoever such fruits

or other things may belong

Provided that such privilege shall not be available to

the proprietor or the lessor if the said products or

things belong to or are held by or on behalf of any

department of the Government of Malta in any case in

which such department is not itself directly liable for

the payment of the debt.

This privilege applies also to indemnities due to the

dominus or to the lessor for the repairs which the

emphyteuta or the lessee has failed to carry out, and

for the non-performance of any other covenant of the

contract.

It shall be lawful for the dominus and the lessor to

seize, or attach by a garnishee order the movables with

which the tenement was furnished or stocked or which

served for its cultivation if such movables have been

removed elsewhere without their consent, and they

preserve their privilege over such movables provided

they make the demand for the issue of the warrant

within fifteen days from the day on which the said

movables have been so removed.

O F P RIVILEGES OVER I MMOVABLES

2010. The privileged creditors over immovables are

(a) the dominus, over the dominium utile of the

emphyteutical tenement, for the debt due to him by the

emphyteuta in respect of ground-rent and for the

performance of the other obligations arising from the

emphyteutical contract;

(b) architects, contractors, masons and other workmen,

over the immovable constructed, reconstructed or

repaired, for debts due to them in respect of the

expenses and the price of their work.

The same privilege is competent to the person who

has, by means of a public deed, supplied money or

materials for the construction, reconstruction or repair

of the immovable, or for the payment of the workmen

employed on such work, provided it is shown by the

said deed that the supply was made for that purpose,

and it is proved that the work was carried out or the

payments to the workmen made, with the materials or

out of the money supplied.

The same privilege is also competent to a third party

in possession, over the immovable of which he has

been dispossessed, for the repairs and improvements

made in or on such immovable.

The said privilege, in case of repairs necessary for the

preservation of the immovable extends to the whole

amount of the debt; in any other case, it is limited to

the sum corresponding to the increase in the value of

the immovable resulting from the works or expenses;

(c) the vendor or any other alienor, whether under an

onerous or a gratuitous title, over the immovable sold

or alienated by means of a public deed, for the whole

or the residue of the price, or for the performance of

the covenants stipulated in the deed of sale or

alienation.

The same privilege is competent to the person who

has, by means of a public deed, supplied in whole or in

part the money for the payment of the price agreed

CIVIL CODE

upon, provided it is shown by the deed of loan that the

money was supplied for that purpose, and it is proved

that the money taken on loan has been paid to the

vendor or other alienor.

If there are several successive alienations, the first

alienor is preferred to the second, the second to the

third, and so on;

(d) co-heirs and other co-partitioners, over the

immovables which were the subject of the partition, in

case of eviction of the immovables divided between

them, and for any compensation or owelty of partition;

(e) the advocate and the legal procurator, for the fees due

to them for their services in the action for the recovery

of the immovable, and the person disbursing the

expenses of the said action, over the immovable, if

recovered.

Sub-title II

O F H YPOTHECS

2011. (1) Hypothec is a right created over the property of a

debtor or of a third party, for the benefit of the creditor, as security

for the fulfilment of an obligation.

(2) Hypothec is of its nature indivisible, and it exists in its

entirety over all the things so charged, over each of such things and

over every portion thereof.

2012. * (1) A hypothec is general or special: it is general when it

affects all the property present and future of the debtor; it is special

when it affects only one or more

(a) particular immovables of the following kind

(i)

things which are immovable by their nature, and

products of such immovables so long as they are

not separated thereform;

(ii) the right of usufruct over the said immovables,

during the continuance of such right;

(iii) the dominium directum over the said

immovables given on emphyteusis, and the

dominium utile over such immovables; and

(b) particular movables as the Minister may, from time to

time, establish.

(2)

A hypothec is legal, judicial or conventional: it is legal if it

*This article, as substituted by Act LVIII of 1975, applies to all hypothecs arising or

contracted before 1st January, 1976.

arises by operation of law; it is judicial if it originates from a

judgment; it is conventional if it is established by contract.

2013. * (1) A special hypothec continues to attach to any

immovables charged therewith as defined in article 2012(1)(a) and

movables charged therewith under sub-article (1)(b) of the said

article into whosoever’s possession such immovable or movable

may pass.

(2) A general hypothec attaches to the property affected

thereby only so long as such property does not pass into the hands

of a third party.

(3) For the effects of a hypothec, a debt or an action which has

been assigned shall not be deemed to have passed into the hands of

a third party so long as the assignee has not collected the debt or

obtained the thing forming the subject of the action, except in cases

of d ebts or actions arising from bills of exchange o r other

documents of title transferable by endorsement or delivery.

2014. A hypothec can be created even in regard to an

indeterminate obligation, provided the object thereof be

determinate.

2015. If the right of the debtor over the thing affected by the

hypothec is subject to a suspensive condition or is subject to

dissolution or annulment, the hypothec is likewise conditional or

subject to dissolution or rescission, saving the provisions of article

1791.

2016. † (1) The creditor of a debt secured by a general hypothec

and whose rights are not otherwise already adequately secured,

shall have, and may cause to be registered, as a further security of

the same debt, a special hypothec over such of the immovable and

movable property of the debtor which are of a kind referred to in

article 2012 and which are of a value sufficient to secure the debt as

provided in article 2063.

(2) The right conferred by sub-article (1) of this article shall be

exercisable by means of a note presented to the Director of the

Public Registry for registration and signed by any person who,

according to article 2045, could have signed the note in respect of

the general hypothec and in the case of debtors resulting from a

public deed by means of a note signed by any notary public; but the

exercise of such right shall be without prejudice to the rights of the

* This article, as substituted by Act LVIII of 1975, applies to all hypothecs arising or

contracted before 1st January, 1976. However, until the expiration of ten years after

the said date, and subject to all other provisions of this Code, a general hypothec

registered before the 1st January, 1976 shall continue to attach to immovables charged

therewith, even if such immovables are acquired after the 1st January, 1976, as if the

provision of this Code were still operative as in force prior to the substitution effected

by Act LVIII of 1975.

† This article, as substituted by Act LVIII of 1975, applies to all hypothecs arising or

contracted before 1st January, 1976. However, until the expiration of ten years after

the said date, and subject to all other provisions of this Code, a general hypothec

registered before the 1st January, 1976 shall continue to attach to immovables charged

therewith, even if such immovables are acquired after the 1st January, 1976, as if the

provision of this Code were still operative as in force prior to the substitution effected

by Act LVIII of 1975.

debtor to demand the reduction or cancellation of the registration in

accordance with the provisions of Sub-title V of this Title.

(3) Where the immovable property of the debtor over which is

to be registered the special hypothec referred to in sub-article (1) of

this article is situated in an area declared to be a land registration

area in accordance with the Land Registration Act, or is otherwise

registered in accordance with the provisions of that Act, the right

conferred by sub-article (1) shall be exercisable by the registration

in accordance with that Act, of a charge or a cautionary charge as

the case may be.

§ I. O F L EGAL H YPOTHEC

2017. A legal hypothec is granted only in the cases hereinafter

specified.

2018. (1) The wife has, as from the day of the celebration of

her marriage, a general legal hypothec over the property of the

husband, for the dowry settled by means of a public deed

previously to the marriage.

(2) In regard to dotal money or property coming to her under

any succession or donation, the said hypothec arises only from the

day on which the succession is opened or the donation takes effect.

2019. (1) A minor has a general legal hypothec over the

property of the parent to whose authority he is subject in respect of

the liability contracted by such parent in the administration of the

property of the minor.

(2) Such hypothec arises from the day on which the

administration of such property vests in the parent.

(3) Where a parent contracts another marriage, the said

hypothec extends over the property of the step-parent as from the

day of the marriage, if the parent continues in the administration

without the authority required by law.

2020. (1) Children and other descendants have also a general

legal hypothec over the property of their surviving ascendant, in

respect of the rights saved to them under articles 637, 638 and 825

in case the said ascendant contracts another marriage.

(2) Such hypothec arises from the day of the death of the other

ascendant.

2021. Persons subject to tutorship or curatorship have a general

legal hypothec over the property of the tutors or curators, for the

liability of the latter in respect of their administration, as from the

day on which such tutors or curators have accepted the office of

tutor or curator.

2022. The creditor who has a privilege over an immovable, has a

special legal hypothec over the immovable subject to the privilege.

§ II. O F J UDICIAL H YPOTHEC

2023. Judicial hypothec originates from -

(a) judgments given by any of the courts of Malta in

favour of the parties obtaining such judgments;

(b) awards of arbitrators, an executive title and decisions

given by courts outside Malta, in favour of the parties

obtaining such awards or decisions, provided the

execution thereof has been ordered by a judgment of

the competent court in Malta.

§ III. O F C ONVENTIONAL H YPOTHEC

2024. (1) A conventional hypothec can only be contracted by

persons who are capable of alienating the property which they

charge with such hypothec.

(2) The property of persons who are not capable of alienating

cannot be hypothecated by contract except for the causes and in the

form established by law.

2025. A conventional hypothec cannot be created except by a

public deed.

2026. Contracts made outside Malta, by any public or authentic

instrument, according to the laws of the place, or before the

diplomatic or consular representative of the Government of Malta

in that place or a person serving in the diplomatic, consular or other

foreign service of any country which, by arrangement with the

Government of Malta, has undertaken to represent that

Government’s interests in that place or a person authorized in that

behalf by the President of Malta, can create a hypothec over

property existing in Malta, if the competent civil court, on the

demand of the creditor, by sworn application, shall have ordered

the registration thereof.

2027. A conventional hypothec is not valid if the sum for which

it is agreed upon is not specified and stated in the deed. If the debt

resulting from an obligation is conditional as to its existence, or

indeterminate as to its value, the creditor cannot demand the

registration of the hypothec except for an amount expressly stated

by him, saving the right of the debtor to cause such amount to be

reduced, where competent.

2028. (1) A conventional hypothec may be general or special.

(2) Only the immovables and movables mentioned in article

2012 can be charged with a special hypothec.

(3) A special hypothec shall extend to all improvements

subsequently made in or on the property hypothecated.

Sub-title III

H OW P RIVILEGES AND H YPOTHECS ARE P RESERVED *

2029. Special privileges over immovables and over those

movables as specified in articles 2002(2) and 2012(1)(b) are

ineffectual unless they are registered in the Public Registry within

the time of two months.

2030. The time referred to in the last preceding article shall run-

(a) as regards the debts mentioned in paragraphs (a), (c)

and (d) of article 2010 from the date of the contract;

(b) as regards the debt mentioned in paragraph (b) of the

said article from the day on which the works are

completed, or, as the case may be, from the day of the

adjudication of the immovable;

(c) as regards the debts mentioned in paragraph (e) of the

same article from the date of the judgment or of the act

by which the suit is terminated.

2031. (1) The aforesaid privileges, if registered within the

time mentioned in the last preceding article, shall not be affected

by any alienation of the property charged with the privilege, or by

any hypothec or burden created thereon, during the course of the

aforesaid time.

(2) The legal hypothec attached to privileged debts shall

remain unimpaired, even though such privileges are not registered

within the aforesaid time, provided such hypothec is preserved as

required in article 2033.

2032. Except for those special privileges specified in articles

2002(2) and 2012(1)(b), general privileges and special privileges

over movables are not subject to registration.

2033. (1) A hypothec, whether legal, judicial, or conventional,

is not effectual unless it is registered in the Public Registry, and it

does not rank except from the date of its registration.

(2) Nevertheless, the hypothec for the dowry settled before

marriage shall rank from the day of the celebration of the marriage

provided it is registered within one month from such day: and in

such case the said hypothec shall not be affected by any alienation,

or hypothec, or burden, made or registered during the course of the

aforesaid time.

*As to old privileges and hypothecs, see the Old Privileges and Hypothecs

(Registration and Renewal) Ordinance (Chapter 27).

2034. (1) The notary who receives a deed involving the

settlement of a dowry shall cause the registration of the relative

hypothec over the property of the husband to be made within the

next following month, notwithstanding any covenant to the

contrary, unless such registration shall have been made within the

time on the demand of other persons.

(2) The notary who contravenes the provisions of sub-article

(1) of this article shall be liable in damages towards the party

interested, and shall be subject to a fine (ammenda) not exceeding

eleven euro and sixty-five cents (11.65) to be awarded by the Court

of Revision of Notarial Acts, either of its own motion or on the

demand of any person.

2035. The registrar of the court of voluntary jurisdiction shall be

liable in damages towards any person under tutorship or

curatorship if he fails to cause the obligations assumed by any tutor

or curator to be registered as provided in the Code of Organization

and Civil Procedure.

2036. Registration may be demanded by the creditor, or by any

other person interested.

2037. The registration of legal hypothecs granted to minors, or

to persons insane or interdicted, may also be demanded by any of

their relatives.

2038. (1) The registration of the legal hypothec granted to

minors under the provisions of article 2019 shall be effected by the

parent mentioned in that article within four months from the day on

which the hypothec arises, unless such registration shall have

already been made at the request of any other relative of such

children.

(2) If the parent contravenes the provisions of sub-article (1) of

this article, he shall forfeit his rights of parental authority, as well

as the right of further managing the property of the persons

previously subject to his authority or of enjoying the usufruct to

which he may have been entitled by law.

(3) The court of voluntary jurisdiction may, according to

circumstances, reinstate the parent in the rights so forfeited.

2039. (1) Where the children or other descendants mentioned

in article 2020 are minors, the registration of the hypothec granted

to them under that article shall be effected by the ascendant therein

referred to, or, as the case may be, by the tutor or curator, within

fifteen days from the celebration of the marriage of the said

ascendant, unless it shall have already been made at the request of

any other relative.

(2) If the ascendant bound to cause such registration to be made

fails to do so within the said time, the court may, according to

circumstances, appoint an administrator of the property the

ownership of which, in virtue of the provisions of articles 637, 638

and 825, shall have vested in the said children or descendants, and

the provisions of the last preceding article shall apply with regard

to the rights of parental authority which may be competent to such

ascendant.

2040. (1) The registration is ineffectual if it is made at a time

when the debtor is in a state of bankruptcy, or if it is proved that the

creditor, at the time of the registration, knew of the existence of

circumstances on which the debtor could found a declaration of

bankruptcy.

(2) The provisions of sub-article (1) of this article shall also

apply as between the creditors of an inheritance, if the registration

is made after the opening of the succession, and the inheritance

remains vacant or is accepted with the benefit of inventory.

2041. (1) The provisions of the last preceding article shall not

apply where it was not possible, owing to the insufficiency of time,

to make the registration; and such insufficiency of time shall be

presumed if fifteen days shall not have elapsed from the day on

which the registration could have been made to the day on which

the debtor was in a state of bankruptcy, or on which the creditor

became aware of the existence of circumstances on which the

debtor could found a declaration of bankruptcy, or on which the

debtor died.

(2) Nor shall such provisions apply with regard to the

registration of privileges or hypothecs acquired previously to the

day last mentioned, if the time allowed for the preservation thereof

shall not have yet elapsed.

2042. For the purposes of registration, there shall be presented to

the Director of the Public Registry a note containing the following

particulars

(a) with regard to the creditor

(i)

his name, current surname, and surname at birth,

where the surname at birth differs from the

current surname;

(ii) his legally valid identification document number

written in figures only, and where the person is

not eligible to hold a legally valid identification

document, the number as appearing in another

document of identification;

(iii) his place and date of birth;

(iv) his place of residence;

(v) whether he is single; married; in a civil union; in

a cohabitation; separated; divorced; annulled; or

widowed; and

(vi) the name, current surname, and surname at birth

of his parents

Provided that the Director of the Public Registry

may, in his discretion, accept notes solely in

those instances where it is manifestly impossible

to identify any of the details

Provided further that the Director of the Public

Registry shall have the right to request the

presentation of other particulars which, in the

opinion of the Director, serve to identify the

creditor, or any detail, with the assistance or

application of those listed, which the Minister may,

from time to time, indicate by means of

regulations.

(b) with regard to the debtor

(i)

his name, current surname, and surname at birth,

where the surname at birth differs from the

current surname;

(ii) his legally valid identification document number

written in figures only, and where the person is

not eligible to hold a legally valid identification

document, the number as appearing in another

document of identification;

(iii) his place and date of birth;

(iv) his place of residence;

(v) whether he is single; married; in a civil union; in

a cohabitation; separated; divorced; annulled; or

widowed; and

(vi) the name, current surname, and surname at birth

of his parents

Provided that the Director of the Public Registry

may, in his discretion, accept notes solely in

those instances where it is manifestly impossible

to identify any of the details

Provided further that the Director of the Public

Registry shall have the right to request the

presentation of other particulars which, in the

opinion of the Director, serve to identify the

debtor, or any detail, with the assistance or

application of those listed, which the Minister may,

from time to time, indicate by means of

regulations;

(c) the cause of the debt or other claim, and the date and

nature of the act creating such debt or claim;

(d) the amount of the capital due, or the amount stated in

the cases referred to in article 2027;

(e) an indication as to whether interest on the debt has

been agreed upon or not;

(f)

(deleted by Act VIII.2010.61.);

(g) an indication as to whether the registration is

demanded for privilege or hypothec, and, in case of

hypothec, whether it is general or special;

(h) in case of privilege or special hypothec, an indication

of the immovable and movable charged with such

privilege or hypothec.

2043. Where a legal hypothec or a privilege exists independently

of a public deed, the cause giving rise to such privilege or hypothec

and the time of its origin shall be stated in the note.

2044. In the case of legal hypothecs, the obligation to state the

amount of the debt shall not apply with regard to claims the value

whereof in a liquidated sum is not stated in a public deed.

2045. (1) If the debt results from a public deed, the note must

be signed by the registrar of the court, or by the notary who has

received, or is the keeper of the deed, or is authorized to give out a

copy thereof.

(2) If the debt results from a judgment, the note must be signed

by the registrar of the court by which the judgment was delivered.

(3) In any other case, the note must be signed by the person

requiring the registration, or by an advocate, a notary, or a legal

procurator.

2046. (1) A judicial hypothec may be registered even though

the judgment be subject to appeal, saving any reduction or

cancellation which may become necessary.

(2) Nevertheless, if the judgment or award does not order the

debtor to pay a liquidated sum, the registration cannot be made

unless the amount to be registered is determined in the same or any

other judgment or award, or, with the concurrence of the debtor, in

a public deed.

2047. A registration affecting the property of a deceased person

may be made under his name, without mentioning the heir.

2048. If at the time of the registration, the immovables and

movables are in the hands of third parties, the indication of the

debtor alone shall be sufficient.

2049. Where there is any difference between the amount due and

that stated in the registration, the registration shall be operative for

the lesser amount.

2050. The expenses of registration shall, in the absence of an

agreement to the contrary, be borne by the debtor.

2051. (1) The assignee of any debt or other claim secured by a

registered privilege or hypothec may demand that the assignment,

whether it be in respect of the whole sum or a part thereof, be

entered in the registry for the amount so assigned, provided the

assignment shall have been made by a public deed.

(2) The aforesaid demand may also be made by any other party

interested.

2052. (1) For the purpose of entering an assignment in the

registry as aforesaid, a note shall be presented to the Director of the

Public Registry containing, the progressive number and the year of

the registration, the date of the assignment, and an indication of the

assignee in the manner prescribed for the indication of the creditor.

(2) The note must be signed by the notary who has received, or

is the keeper of the deed of assignment, or is authorized to give out

a copy thereof.

Sub-title IV

O F THE R ENEWAL OF R EGISTRATIONS

2053. (1) The registration of a privilege or hypothec in the

Public Registry shall cease to have effect after thirty years from the

date thereof unless such registration is renewed before the

expiration of the said time.

(2) The registration of a legal hypothec in favour of the wife or

of any person subject to tutorship or curatorship shall be exempt

from renewal until one year after the dissolution of the marriage or

the cessation of the administration.

2054. A renewal, if made after the expiration of the prescribed

time shall, even in the case of a privilege, have the effect of an

original hypothec which shall rank only from the date of the

renewal.

2055. (1) The renewal of a registration may be demanded by

any person who, according to law, is entitled to demand the

registration.

(2) The renewal shall be made in the same Public Registry in

which the registration was made.

2056. The renewal of a registration caused to be made by the

creditor shall not interrupt the running of prescription in favour of

the debtor or of the third party in possession.

2057. In order to obtain the renewal of a registration it shall be

necessary to present to the Director of the Public Registry a note

similar to that of the previous registration with a declaration that it

is intended to renew the original registration.

2058. In the absence of an agreement to the contrary the

expenses of the renewal shall be at the charge of the debtor.

Sub-title V

O F THE R EDUCTION AND C ANCELLATION OF R EGISTRATIONS

2059. (1) The reduction of a registration is a partial

cancellation thereof.

(2)

A registration may be reduced -

(a) if a part of the debt is extinguished;

(b) if the right of the creditor, previously affecting the

whole of an immovable, or several immovables, is

restricted to a part of such immovable conveniently

separable therefrom, or to one or some only of such

immovables.

2060. (1) A registration may be reduced or totally cancelled

either with the consent of the creditor given in a public deed, or in

virtue of a judgment of the competent court.

(2) If the creditor is not capable of alienating, his consent for

the reduction or cancellation of a registration is not valid unless it

is given in the form prescribed by law.

2061. If the total or partial extinguishment of a registered debt

results from a judgment which has become res judicata or from any

other public deed, the cancellation of the registration, or the

reduction thereof as to the amount of the debt, may be effected

without the consent of the creditor.

2062. (1) Besides in the case mentioned in article 2027, the

reduction of a registration may be ordered by a judgment in the

case of a general legal hypothec, or of a judicial hypothec, if it is

shown that the registration can be restricted as to the property

affected thereby without injuring the interests of the creditor.

(2) The same rule shall apply in the case of a general

conventional hypothec created to secure a right contingent upon an

uncertain event, even though such hypothec may have been

covenanted before the 11th February, 1870; and any renunciation of

the right to demand the reduction is void, unless it is made by a

public deed on a day subsequent to that of the instrument by which

the hypothec was created.

2063. (1) The reduction, however, shall not be ordered in any

of the cases referred to in the last preceding article, if the value of

the immovable property to which the debtor demands that the

registration should be restricted, does not exceed, by at least one-

half, the amount of the registered debt together with the interest

accrued due, and that which will become due up to five years from

the day of the reduction.

(2) It shall be lawful for the court to determine the value of the

aforesaid immovable property according to the rules laid down in

Sub-title III of Title II of Book Third of the Code of Organization

and Civil Procedure.

2064. The cancellation of a registration may also be ordered by a

judgment if it is not shown that the registration was made for a

lawful cause, or if it is shown that the right of the creditor is

extinguished.

2065. For the purpose of effecting the reduction or cancellation

of a registration, there shall be presented to the Director of the

Public Registry a note containing the following particulars

(a) the progressive

number

and

the

year

of

the

registration;

(b) an indication as to whether a reduction or the

cancellation of the registration is demanded;

(c) an indication of the judgement, or deed, if any, under

which the reduction or cancellation is demanded.

2066. Where the reduction of a registration is demanded, the

sum or property in respect of which the registration is to continue

to be operative shall be stated in the note.

2067. Where the reduction or cancellation is demanded in

pursuance of a public deed, the note shall be signed by the notary

who has received or is the keeper of such deed, or is authorized to

give out copies thereof; where the reduction or cancellation is

demanded in pursuance of a judgment, the note shall be signed by

the registrar of the court by which the judgment was delivered.

2068. (1) The expenses for the reduction or cancellation of a

registration shall be borne by the debtor.

(2) Nevertheless, if the cancellation is due to the absence of a

lawful cause for making the registration, the expenses shall be

borne by the person who caused such registration to be made.

(3) In the case referred to in article 2027 it shall be in the

discretion of the court to direct, according to circumstances,

whether such expenses are to be borne by the creditor or by the

debtor.

Sub-title VI

O F THE E FFECT OF P RIVILEGES AND OF H YPOTHECS AGAINST

T HIRD P ARTIES IN P OSSESSION

2069. Creditors who have a privilege or hypothec which has

been registered retain over the immovables or movables subject to

the privi lege or hyp othec their right to be ranked and paid

according to the order of the debts due to them or the registration

thereof, into whosesoever hands such immovables or movables may

pass.

2070. If the third party in possession has not complied with the

formalities prescribed for disencumbering his property, he remains,

in virtue of the registration legally made, liable as possessor for all

the h ypothecary debts, and shall be entitled to any time or

extension of time granted to the original debtor.

2071. The third party in possession is bound, in the aforesaid

case, to surrender, without any reservation, the immovable or

movable charged with the hypothec, unless he elects to pay all the

hypothecary debts, as each of them falls due, whatever their

amount may be.

2072. (1) If the third party in possession fails to surrender the

immovable or movable or to pay the debt fallen due, it shall be

lawful for the hypothecary creditor to demand judicially the sale of

the immovable or movable charged with the hypothec after having

by means of a protest called upon the debtor to discharge the debt,

and upon the third party in possession either to discharge the debt

or to surrender the immovable or movable.

(2) The said demand may not be made before the expiration of

thirty days from the service of the protest on the debtor and the

third party in possession.

2073. A third party in possession who is not personally liable for

the debt may, by setting up the benefit of discussion, oppose the

sale of the immovable or movable of which he is in possession, if

there is in the possession of the debtor or of his sureties or of other

persons personally, though not jointly and severally, liable for the

debt, other property subject to the same debt.

2074. The benefit of discussion may not be set up against a

creditor having a privilege or special hypothec over the immovable

or movable.

2075. Where the actual value of the improvements made in or on

the tenement or movable by the third party in possession, exceeds

the actual value of the immovable or movable without such

improvements, the third party in possession may elect either to pay

t h e a c t u a l v a l u e o f t h e i m m o va b l e o r m o v a b l e w i t h o u t t h e

improvements or to surrender the immovable or movable.

2076. The surrender of an immovable or of a movable for the

satisfaction of the obligation to which it is subject, may be made by

any third party in possession who is not personally liable for the

debt, wholly or in part, and who is capable of alienating or has been

duly authorized for such purpose.

2077. The surrender of the immovable or of the movable until

the sale thereof has taken place, shall not prevent the third party in

possession from taking back the immovable or the movable on

paying the whole debt and the costs, even though the surrender may

have taken place in execution of a judgment.

2078. The surrender of the immovable or of the movable shall be

made by means of an act filed before the competent court.

2079. (1) Any deteriorations caused in consequence of gross

negligence on the part of the third party in possession injuriously

affecting the interest of the hypothecary creditors, give rise to an

action for indemnity against him.

(2) He cannot claim reimbursement in respect of the expenses

a n d im pr o v e m e n t s m a d e b y h i m , e x c e pt a s p r o vi d e d u n d e r

paragraph (b) of article 2010.

(3)

He has no right of retention on account of improvements.

2080. The fruits of the immovable are not due by the third party

in possession except from the day on which he has been called upon

to surrender the immovable or to pay the debt; and if since that day

one year shall have elapsed before the judicial demand is made, the

fruits shall be due from the date of such demand.

2081. (1) The easements and real rights which a third party in

possession had upon the immovable before he came into possession

thereof, shall revive after the surrender made by him or after the

adjudication which has taken place against him.

(2) If, however, such rights were rights of privilege or

hypothec, they are not ranked unless they have been registered.

2082. The third party’s own creditors shall exercise their rights

of hypothec over the immovable or the movable surrendered or

sold, according to the order of their respective registrations, after

the creditors whose claims shall have been registered against the

former owners previously to the alienation made by the latter, or

within the times mentioned in articles 2031 and 2033.

2083. (1) The third party in possession who has paid the debt

or has surrendered the immovable or has been dispossessed thereof,

has a right to relief for eviction against the principal debtor.

(2) He can also maintain an action against other third parties in

possession of other immovables liable for the same debt, provided

such other third parties have acquired their immovables at a later

date than that on which he acquired his immovable.

Sub-title VII

O F THE E XTINGUISHMENT OF P RIVILEGES AND H YPOTHECS

2084. Privileges and hypothecs are extinguished -

(a) by the extinguishment of the principal obligation;

(b) by the creditor’s renunciation of the privilege or

hypothec;

(c) by the fulfilment of the formalities prescribed in Title

II of Part II of Book Second of the Code of

Organization and Civil Procedure;

(d) by prescription.

2085. Prescription takes place in favour of the debtor, in respect

of property of which he is in possession, by the lapse of the time

established for the prescription of the debt to which the privilege or

hypothec refers.

2086. As to property which is in the possession of a third party,

prescription takes place in favour of such third party by the lapse of

ten years from the day on which he acquired such property, even

though the creditor may not have known that such property had

passed into the hands of a third party.

2087. The registration caused to be made by the creditor shall

not interrupt the running of prescription in favour of the debtor or

of the third party in possession.

Sub-title VIII

O F THE O RDER OF P RIORITY OF P RIVILEGES AND H YPOTHECS

2088. Among privileged debts priority is regulated according to

the particular nature of each privilege.

2089. Debts having a general privilege for any of the causes

mentioned in paragraphs (a), (b) and (c) of article 2003 are paid in

preference to those having any other privilege, excepting only the

debt due to the pledgee as provided in paragraph (a) of article 2009.

2090. Debts having a general privilege for any of the causes

mentioned in paragraphs (d) and (e) of article 2003 are paid in

preference to those having any other privilege, excepting the debts

mentioned in paragraphs (a), (b) and (c) of the said article, the debt

due to the pledgee as aforesaid, and the debt due to the hotel-keeper

as provided in paragraph (b) of article 2009.

2091. (1) Saving the provisions of the last two preceding

articles, in all cases of competition of privileged debts, differing in

degree, the order in which the privileges are set forth in articles

2003, 2009 and 2010 shall determine their respective priority.

(2) Nevertheless, the privilege of the seller, mentioned in

paragraph (d) of article 2009, shall not operate to the prejudice of

the privilege of the dominus or of the lessor, m entioned in

paragraph (e) of the said article; the right of the seller mentioned in

art icle 1439 sh al l not operate to the prejudice of the debt s

mentioned in paragraphs (a), (b) and (c) of article 2009; and the

debt mentioned in paragraph (b) of article 2010, if it is in respect of

necessary repairs for the preservation of the tenement, shall have

preference over the debt due to the dominus.

2092. Hypothecary debts are paid according to the order of

registration, saving the provisions of sub-article (2) of article 2033.

2093. Hypothecs registered on the same day confer on the

creditors an equal rank, without any distinction between

registrations made at different hours of the same day.

2094. Privileged or hypothecary debts in the same rank, are paid

ratably.

2095. (1) In the same rank in which a debt is placed, there shall

be placed also the interest accruing on that debt, the expenses of

registration, and the expenses, if any, incurred for the judicial

acknowledgment of the debt unless the latter are otherwise

privileged

Provided that in the case of a hypothec, the above rule shall

apply with reference to interest only if the fact that interest has

been agreed upon is indicated in the note of registration of the

hypothec in accordance with article 2042(e).

(2) When the note of registration of a hypothec indicates that

interest has been agreed to accrue on a debt, no additional note of

registration shall be required when any change, variation, or

amendment takes place in relation to the of rates of interest

payable, the modalities for the calculation of interest including any

indices, margin, or market mechanism.

(3) Furthermore, no additional note of registration shall be

required, for any change, variation or amendment of

(a) the repayment schedule; or

(b) the currency in which payment of the debt is to be

made.

(4) The above shall apply irrespective of whether the change,

variation or amendment takes place in virtue of a public deed or a

private writing, pursuant to a term of the original agreement or as a

result of a market event.

(5) The obligations changed, varied, or amended as aforesaid

shall continue to rank in the same rank in which the principal

obligation is placed.

Title XXIIIA

O F TRUSTS AND OBLIGATIONS

Sub-title I

O F MATRIMONIAL REGIMES

2095A. (1) Property being the subject of matrimonial contracts

may be settled in trust only by means of a written instrument.

Trusts between spouses are not created by operation of law.

(2) Property forming part of the community of acquests or

governed by the system of community of residue under separate

administration may only be settled in trust with the consent of both

spouses. Paraphernal property of either spouse may be settled in

trust by each spouse acting singly.

(3) A trust settled by both spouses jointly may only be varied

or, if revocable, may only be revoked by both spouses acting jointly

and after the death of one of the spouses such trust shall be

irrevocable notwithstanding any of its terms, except with the

authorisation of the Court in its voluntary jurisdiction.

(4) A beneficial interest held by a spouse under a trust shall not

form part of the community of acquests irrespective of when it was

settled in his favour or when he became a beneficiary, except in the

case of a beneficial interest under a trust into which community

property has been jointly settled by the spouses and only in relation

to such property.

(5) Any distribution of income made under a trust in favour of

a spouse shall, unless otherwise expressly provided in the trust

instrument, form part of the community of acquests or of the

community of residue under separate administration of such

spouse, as may be applicable, in terms of article 1320 and article

1338(2) respectively.

(6) When the matrimonial home is the subject of trusts for the

benefit of the spouses or any one of them, nothing in the trust

instrument or in the law shall imply that a spouse enjoys lesser

rights to the home and its enjoyment than under article 3A, and the

terms of the trust may not be revoked or varied, nor may the trustee

dispose of the said property, without the consent in writing of both

spouses or, in the absence of consent, without the authorisation of

the Court.

(7) Any debt, indemnity or other liability due by either spouse

as a trustee shall not be charged to the assets of the community of

acquests in terms of article 1327 except as provided in article 1329

and, for the purposes of article 1341, any such debt shall be deemed

to be a paraphernal debt.

2095B. (1) A person may settle property under trusts to his

spouse acting as trustee for the benefit of beneficiaries including

any such spouse as beneficiary.

(2) When a spouse is a beneficiary, a trustee may not enter into

a contract of sale with the settlor spouse except in the cases

specified in article 1366(b).

(3) A person cannot be a beneficiary under a trust settled by his

or her spouse for more than the property that is allowed to be

bequeathed or donated to such spouse in terms of this Code.

Notwithstanding the term s of the trust and the rules at law

otherwise applicable in relation to any excess, the excess shall be

held by the trustee for the use and enjoyment of such spouse for his

lifetime and thereafter shall be held on trust for the settlor or his

heirs.

(4) If a beneficiary spouse is entitled at law to any property in

ownership, the property held in trust up to the reserved portion,

having regard to any other dispositions in such person’s favour,

shall in virtue of this provision be held on separate trust for the

benefit of such spouse alone irrespective of the terms of the trust.

Any further property settled in trust for the benefit of the spouse

shall, irrespective of the terms of the trust, be held under trust only

for the use and enjoyment of the beneficiary for his lifetime and

thereafter for the benefit of the settlor or his heirs. The above shall

be without prejudice to the right of any person entitled to the

reserved portion to demand the reduction of the trust when the

settlement impinges on right of the reserved portion as provided by

this Code.

2095C. The provisions of law relating to spouses or matrimonial

property shall not apply in any manner to the actions of a spouse

when acting as trustee.

Sub-title II

O F ANNUITIES

2095D. Title XI of Book Second ''Of the Constitution of

Annuities'' and the provisions of sub-titles I and II thereof shall not

apply in relation to annuities constituted in a deed of trust or

testamentary trusts and the obligations of trustees and the rights of

the beneficiaries shall be regulated exclusively by the terms of the

trust and the special laws relating to trusts unless the trust

instrument (or any written agreement entered into by the trustee)

expressly states that a particular annuity shall be governed by the

provisions of the said Title.

Sub-title III

O F SECURITY TRUSTS

2095E. (1) Security may be created in favour of a trustee, called

a security trustee, for the benefit of any creditor or creditors,

present or future, or in favour of a class or classes of creditors by

either constituting security in favour of the trustee in the manner

provided for by applicable law of Malta relating to particular types

of security, or, by the settlement of property in favour of the trustee

under written terms governing the trusts intended to operate for the

purposes of providing security.

For the purposes of article 2042 and other provisions under

special laws which may be applicable to security, the trustee shall

be treated as a creditor and shall be entitled to be registered as

holder of the security, indicating his position as trustee.

(2) The security trustee shall enjoy all such rights and be

subject to such obligations as may be stated in the instrument in

writing regulating -

(a) the appointment of the security trustee, and

(b) the security granted to the security trustee for the

benefit of the creditor or creditors.

(3) Security, for the purposes of this article, means any

arrangement whereby the rights of a creditor are legally protected

including any undertaking, guarantee, mandate, pledge, title,

transfer, grant, privilege or hypothec or the placing of property in

possession or control of the trustee with rights of retention and sale

as may be agreed.

(4) When a hypothec is created in favour of a security trustee

which is a bank or other entity which is authorised in terms of the

Banking Act or in terms of equivalent legislation overseas, such

hypothec may, notwithstanding any other provision of law, be

granted to secure future debts by the same debtor to the security

trustee or the beneficiaries of the security trusts, present or future,

as may be defined in the trust instrument. Such a hypothec shall be

valid on condition that the deed constituting the hypothec expressly

states that it secures future debts of the same debtor and limits the

effects of the hypothec to a stated maximum sum. Such information

shall form part of the relative note of registration for the purposes

of article 2042 in lieu of the requirements of article 2042(c), (d)

and (e).

(5) The Minister may make regulations to regulate the

operation of security granted in favour of a security trustee to

secure future debts.

(6) When security is granted to a security trustee, such trustee

shall have the power and legal interest to file any legal proceedings

for the enforcement thereof even where under the terms of the deed

of trust and the security -

(a) the trustee is not the creditor of the principal debt or

obligation; or

(b) all creditors enjoy the right to sue, jointly and

severally, for the enforcement of the debt

Provided that payment by the debtor either to the security

trustee or to the beneficiaries, if also creditors, shall discharge the

obligations of the debtor to the extent of the payment made.

(7) Subject to the preceding sub-article, nothing in the Code of

Organization and Civil Procedure shall hinder the action of a

security trustee for the benefit of the beneficiaries under a trust on

the basis of any simultaneous judicial or other action by any

beneficiary under the trust.

(8) A security trustee shall not be subject to any of the

obligations of the creditors for whose benefit he may hold security

except to the extent to which he has expressly agreed in writing.

(9) A security trustee may resign, retire or be substituted in

accordance with the terms of the trust and in such case the original

security trustee shall assign any security held by him to the

substitute security trustee in the form required by law for the

particular security held.

(10) Beneficiaries of a security trust who may be vested with the

debt, may assign the debt to third parties and the provisions of

article 1475 shall apply to the security for such debt even when

held by a security trustee and in such case the assignees of such

debt shall enjoy the rights of beneficiaries under the security trust

upon notice to or acknowledgement by the trustee without the need

of a separate assignment of the beneficiary rights under the trust

deed.

(11) The appointment of a security trustee to hold security, his

removal or his substitution by another trustee and any related

transactions shall not operate as a novation nor shall they affect the

security validly constituted in any manner.

(12) A security trustee may also act as an agent or mandatory for

the beneficiaries of the security trust and may carry out functions

under such contract in accordance with its terms.

(13) In the exercise of any right relating to the enforcement of

any security, the security trustee shall be bound by the legal

provisions relating to the particular type of security and in any case

where the security arrangements are not subject to rules as to its

enforcement, the security trustee shall act in a fair and reasonable

manner in relation to the debtor.

(14) The provisions of article 1967 shall apply mutatis mutandis

where a pledge is granted by the debtor or a third party for the

debtor, to a security trustee, for the benefit of any creditor or

creditors, present or future, or in favour of a class or classes of

creditors.

Title XXIIIB

OF SECURITY BY TITLE TRANSFER

2095F. (1) Security by title transfer is a contract whereby the

debtor, or a third party for the debtor, transfers or assigns movable

things, whether by nature of by operation of law, so as to secure a

present or future obligation, to

(a) a creditor or creditors, present or future; or

(b) to a third party, who shall thereby be considered to be

a trustee for the benefit of a creditor or creditors,

present and, or future and subordinately for the debtor

in accordance with article 2095E.

In this title

(i)

the term "creditor" shall include both the

creditor and a third party security trustee for the

creditor; and

(ii) the terms "debtor" and "transferor" may refer to

the same person or to different persons

depending on the circumstances and the term

"debtor" shall include the transferor unless the

context requires otherwise.

(2) Subject to the observance of such formalities as may be

required in case of particular types of movable property, ownership

of the property is acquired by the creditor as soon as the debtor and,

or the transferor and the creditor enter into an agreement in writing

designating

(a) the property being transferred;

(b) the secured obligations, which may be existing or

future obligations; and

(c) the rights of the transferee in case of default as

stipulated in the agreement.

(3)

For the purposes of the preceding sub-article -

(a) when the property being transferred consists of debts

and other monetary obligations the inclusion in the

agreement of a list of debts arising from a written or

legally equivalent instrument shall be sufficient;

(b) when the transfer of property refers to a large amount

of debts or to a class or classes of debts, present or

future, the provisions of articles 9 to 14 of the

Securitisation Act shall apply mutatis mutandis with

such amendments as are required paying regard to the

fact that in lieu of a transfer for the purposes of a

securitisation, the parties may agree to a transfer of the

same assets for the purpose of security.

(4)

Such agreement may also designate

(a) the rights of the transferee in the event of a breach of

the secured obligations; and

(b) the rights of the transferor in case of payment or other

extinction of the secured obligations; and

(c) the manner in which the property is to be valued when

rights of sale or set-off are exercised by the creditor,

and such agreement shall take effect in accordance with its terms.

In the absence of terms of agreement on the matters stated in this

sub-article, the provisions of this title shall apply.

(5) Where the property being transferred by way of security is

of a kind which may be transferred by mere delivery, an agreement

in writing as provided for in sub-article (2) shall be required for the

transfer of such property. Without prejudice to the rights of third

parties acting in good faith, the creditor may agree that the debtor

use the property so transferred.

(6) A transfer by way of security of debts and other rights shall

b e o p er a t e b e t w e e n t h e p a r t i e s f r o m t h e m o m e n t w h e n t h e

agreement referred to in sub-article (2) is made.

(7) A transfer by way of security shall operate as a transfer

with regard to third parties

(a) in the case of debts and rights against an obligor, when

notice is given in accordance with the article 1471 or

the obligor of the assigned right has acknowledged the

assignment; or

(b) in the case where the rights consist of property, where

there is no obligor and where the title to which is

registered in a public registry, the effects of the

transfer shall arise when the transfer is registered in

the relevant register.

For the purposes of article 1471, notice in writing may be

given by any means, including by electronic means, and it shall not

be required that notice be made by judicial act.

(8) Apart from the case contemplated in article 1472(b), when a

further assignment of a debt or other right is made by way of

security and is notified to the debtor or registered in accordance

with sub-article (7), the effects of the subsequent assignment shall

arise only on the termination of the effects of the prior assignment

and the rights of the subsequent assignee are conditional thereon.

Except where the subsequent assignment is made with the written

consent of the prior assignee and subject to the terms of such

consent, the prior assignee shall have no obligations towards any

subsequent assignee.

(9) The consideration for a transfer by way of security shall be

the grant and acceptance of security, and the provisions of Title VI

of Part II of Book Second as to "price" shall not apply to such

transfers.

(10) For all effects and purposes, the creditor to whom the

property has been transferred shall be considered to be the absolute

owner of the property so transferred and such property shall not

form part of the patrimony of the debtor.

(11) A transfer made in accordance with the provisions of this

title

(a) shall not be subject to re-characterisation as any other

contract and shall take effect in accordance with its

terms; and

(b) shall be enforceable in accordance with the terms of an

agreement made in accordance with sub-article (2) and

the provisions of this title notwithstanding the

bankruptcy or insolvency of the debtor of the debt or

the grantor of security by title transfer or the

commencement or continuation of any insolvency or

winding up proceedings or re-organisation measures.

(12) The fruits of the property transferred by way of security

shall be deemed to form a part of the property and shall be subject

to all the rights of the creditor as stated in this Title.

2095G. (1) The terms of the agreement relating to the transfer of

property by way of security shall regulate all matters between the

debtor, the transferor and the creditor, including the rights of the

creditor to enforce the security in case of default.

(2)

Subject to the terms of the agreement between the parties,

in the event of a default, the creditor shall, upon giving notice in

writing to the debtor and the transferor of property by way of

security, if different, be entitled to realise the property transferred

in one of the following ways

(a) by sale; or

(b) by setting off or netting their value, and applying their

value in discharge of the secured obligations.

(3) Set-off or netting shall only be possible if it has been

expressly agreed to in the agreement between the parties.

(4) Where a creditor exercises his rights as aforesaid, he must

exercise such rights in a commercially reasonable manner, shall be

bound by fiduciary obligations in that regard and shall be bound to

account to the debtor as to the value used for such enforcement.

(5) Without prejudice to the title vested in the creditor, the

creditor shall be entitled, in any case, to demand the sale by judicial

auction of the property transferred by way of security and the

provisions of Sub-title II of Title VII of Part I of Book Second of

Code of Organization and Civil Procedure on Judicial Sales by

Auction shall apply with such variation as is required due to the

context.

(6) Where the property transferred by way of security is in the

possession of the debtor, the Court shall afford such support to the

creditor as may be necessary to take possession of the property for

the purposes of any mode of enforcement as aforesaid.

(7) Any enforcement pursuant to the preceding sub-articles

shall be without prejudice to the rights of any third party who may

have acquired any personal or real rights over the property from the

debtor prior to the transfer by way of security, or, if after, with the

prior written consent and participation of the creditor; provided that

when the security arrangement is not binding with regard to third

parties or otherwise publicly known through -

(a) registration of the transfer in a public registry; or

(b) notice to or acknowledgement by the debtor of a debt

in accordance with article 1471 (as modified by sub-

article (7) of article 2095F), or

(c) transfer of possession of the property to the creditor or

a security trustee,

any person acquiring rights over the said property in good faith for

value shall also be protected.

(8) It shall be lawful for the parties to enter into a close out

netting agreement in accordance with the Set-Off and Netting on

Insolvency Act to be applied when a default takes place.

2095H. (1) When the creditor has taken possession of the

property so transferred, subject to the terms of the transfer

agreement, he shall not be permitted to make use of the property

unless expressly permitted to do so by the agreement between the

parties and shall be liable to the transferor for the loss or

deterioration of the property arising from his negligence.

(2) Where the property transferred by way of security is

fungible in nature

(a) the parties may agree that the creditor to whom the

property has been transferred may enter into

transactions involving its sale and may also use it as

security for the performance of his obligations;

(b)

the obligation to return the property shall be to return

equivalent property but may be extended to return

equivalent value.

(3) The provisions on fiduciary obligations in this Code shall

apply to the creditor who shall be considered as having acquired

title and possession as a fiduciary for the sole purposes of -

(a) retaining the title and, if so agreed, possession of

property as security for the performance of the secured

obligations,

(b) of applying such property or its value in settlement of

the secured obligations in case of default; and

(c) of returning the property, or its equivalent in case of

fungible property, on performance of the secured

obligations or of returning any excess in value to the

transferor in case of enforcement,

and notwithstanding the obligation to avoid conflicts of interest he

shall be entitled to act in his own interests for the above purposes.

(4) Notwithstanding the fact that the creditor is the absolute

owner of property transferred by way of security, any exercise of

ownership rights other than as may be provided for in the

agreement between the parties or as herein provided shall be a

breach of fiduciary duties for which the creditor shall be liable

toward the debtor in accordance with this Code.

(5) When enforcement is through set-off by the creditor, upon

notice of enforcement given in accordance with article 2095G(2),

the creditor shall become the absolute owner of the property and

shall be released of all fiduciary duties arising from the transfer

agreement and these provisions. The value of the obligation of the

creditor to return the property transferred by way of security which

is set-off against the rights of the creditor to payment of the

obligation due to him shall be established by agreement with the

transferor or established in the manner agreed between the parties

and in the absence of such agreement, at the market value if there is

one, or where there is no market value, at a price established by an

independent person competent to value such property.

(6) Upon a notice of enforcement through sale of the property

in accordance with article 2095F(2), the creditor shall have the

power to sell the property -

(a) in the manner agreed with the transferor or, in the

absence of agreement, in the manner the creditor

considers most appropriate and commercially

reasonable;

(b) for a price established by agreement with the

transferor or established in the manner agreed between

the parties and in the absence of such agreement, at the

market value if there is one, or where there is no

market value, at a price established by an independent

person competent to value such property; and

(c) when the property is to be sold through a judicial sale

by auction, at a price and in accordance with

applicable provisions of law,

and the creditor shall be the sole person entitled to receive the

proceeds of sale.

7) Upon the events in the preceding sub-articles taking place,

the creditor shall allocate to and set-off against the obligation

secured -

(a) in the case referred to in sub-article (5), the value of

the obligation to return the property set-off against the

secured obligations;

(b) in the case referred to in sub-article (6), the proceeds

of sale received by the creditor shall be set-off against

the secured obligations,

and any excess shall be immediately paid over to the transferor.

(8) If it is necessary to properly realise the commercially

reasonable value, the creditor shall be entitled to sell or set-off as

aforesaid all the property transferred by way of security even if it

exceeds the value of the secured obligations. Otherwise, the

creditor shall only sell or set-off as much as is required to cover the

secured obligations, interest and charges and return the excess

property to the transferor.

(9) Except where special laws permit otherwise, it shall not be

lawful for the debtor to agree on the value of property transferred

by way of security for the purposes of enforcement before the

receipt by him of a notice of sale or set-off provided for in article

2095G(2); provided it shall be lawful to agree on a value to be

established by reference to a market or on valuation mechanisms to

be followed in case of disagreement between the parties.

(10) The Court may, a posteriori, on the demand of the debtor

verify the commercial reasonableness of the realisation of the

property or the valuation used in terms of the preceding provisions.

Upon such review the Court may, if it finds that the realisation was

not carried out in accordance with the agreement between the

parties or, absent terms of agreement, in a commercially reasonable

manner or at a fair value, condemn the creditor to pay damages to

the transferor and, or the debtor for the losses suffered by his

actions.

2095I. (1) When the debtor has performed the secured

obligations the creditor is bound absolutely to return the property

to the transferor by carrying out such formal and others acts as may

be required.

(2)

Except as otherwise agreed, it shall not be lawful for the

transferor to demand the partial return of the property transferred

by w ay o f security on the part ial ful fil ment of th e secured

obligations and the creditor is only obliged to return the property so

transferred to the transferor, when the debtor has fully performed

the secured obligations.

(3) The terms of any undertaking relating to the return of

pr op e r t y t r a n s f e r r e d i n ac c o rd a n c e w i t h t h i s Ti t l e s h a l l b e

enforceable in accordance with its terms and the provisions of

article 1357 shall not apply.

2095J. (1) Nothing in this Title shall limit or affect the

ap plication o f the laws of Malta which m ay im plement t he

Financial Collateral Arrangements Directive (2002/47/EC), as the

same may from time to time be amended, in so far as it applies to

particular property which may be the subject of a title transfer

financial collateral arrangement.

(2) A transfer of an obligation by way of security shall not

affect the operation or effect of the legal or contractual terms of the

underlying debt or other right being the property transferred by way

of security.

(3) A debtor of a debt or other right may, in accordance with

article 1996A, validly waive his rights of set-off or other defence

vis-a-vis his immediate creditor when such debt or other obligation

is the subject of a transfer by way of security and such debtor shall

not, thereafter, be entitled to raise any defence against any claim

made by a transferee of the assigned debt and this notwithstanding

the absence of any notice or acknowledgement in terms of article

1471. (4) The provisions of article 1483 shall not apply in the case of

an assignment by way of security.

Title XXIV

O F THE B ENEFIT OF S EPARATION OF E STATES

2096. The benefit of separation of estates is the right which the

creditors of a deceased person and his legatees have, to demand

that the property, both movable and immovable, of the inheritance

be separated from the particular property of the heir, and applied to

the payment of their respective debts or legacies with preference

over all the heir’s own creditors.

2097. The effect of the aforesaid benefit in favour of those

entitled to it is only that of protecting them against any prejudice

which they might sustain in regard to the property of the

inheritance in consequence of the claims of the particular creditors

of the heir; and such benefit maintains in favour of all and each of

them, in competition, such rights only as are competent to them

respectively, according to the nature and the conditions of their

debts or other rights over the property of the inheritance.

2098. The right to exercise the said benefit ceases unless it is

exercised within one year from the day of the opening of the

succession.

2099. Any alienation of hereditary property, whether movable or

immovable, made by the heir, even during the course of the said

time, before such benefit is exercised, shall remain unimpaired; but

in any such case the benefit may be exercised over the price which

may be still due.

2100. (1) Any alienation of movables made by the heir shall

remain unimpaired, even if made after the benefit has been

exercised, saving the provisions of the law relating to the alienation

of litigious things.

(2) Immovables, however, alienated after the benefit aforesaid

has been exercised, continue to be subject to the rights of the

creditors of the deceased and to those of his legatees.

2101. (1) The said benefit is exercised by means of a judicial

demand.

(2) As regards immovables, however, the registration of the

benefit takes the place of such demand.

2102. (1) For the purpose of effecting the registration of the

benefit of the separation of estates, there shall be presented to the

Director of the Public Registry a note containing -

(a) the particulars set forth in paragraphs (a), (b), (c), (d),

(e) and (f) of article 2042;

(b) a demand for the registration of the benefit of the

separation of the estate of the deceased debtor from

that of his heirs.

(2) The provisions of articles 2043 to 2047 and 2049 to 2052

shall apply to the registration of this benefit.

2103. The registration of the aforesaid benefit effected within

three months of the day of the opening of the succession shall be

operative as from such day in regard to immovables alienated

within the said time.

2104. (1) The benefit of the separation of estates cannot be

exercised if there has been novation by acknowledging the heir as

the debtor.

(2) The benefit shall not operate except in favour of the persons

exercising it.

(3) It may be exercised in regard to all the property

indiscriminately or for the separation of one or more things

specified in the demand.

2105. The creditors of the heir cannot demand the separation of

estates against the creditors of the inheritance.

2106. The benefit of the separation of estates in regard to

successions opened before the 11th February, 1870 shall continue

to be regulated by the laws in force at the time of the opening of

such successions.

Title XXV

O F P RESCRIPTION

G ENERAL P ROVISIONS

2107. (1) Prescription is a mode of acquiring a right by a

continuous, uninterrupted, peaceable, open, and unequivocal

possession for a time specified by law.

(2) Prescription is also a mode of releasing oneself from an

action, when the creditor has failed to exercise his right for a time

specified by law.

2108. (1) Prescription cannot be renounced beforehand, nor

shall it be lawful to establish a time for prescription longer than

that specified by law.

(2)

Prescription already acquired may be renounced.

2109. (1) Renunciation of prescription is express or tacit.

(2) Tacit renunciation is inferred from a fact which implies the

abandonment of the right acquired.

2110. A person who is under disability to alienate cannot

renounce a prescriptive right already acquired.

2111. The court cannot of its own motion give effect to

prescription, where the plea of prescription has not been set up by

the party concerned.

2112. Prescription may be set up at any stage of the proceedings,

even on appeal.

2113. Creditors and other persons having an interest in giving

effect to prescription may set up the plea of prescription, even

though the debtor or the possessor shall have renounced it.

2114. Prescription does not take place in regard to things which

are extra commercium.

2115. (1) Prescription applies to rights and actions vested in

any person, institution, or body corporate, indiscriminately, as well

as to property subject to entail.

(2) Nevertheless, prescription may not be set up against any

right or action of the Government of Malta, except in the cases

mentioned in articles 2149, 2153, 2154, 2155 and 2156.

2116. The provisions of this Title shall apply, unless otherwise

provided in other parts of this Code or in other laws.

2117. (1) Prescriptions commenced before the 11th February,

1870 shall be governed by the law then in force.

1870. (2) Nevertheless, prescriptions commenced before the

aforesaid day, and for the completion of which, according to the

law then in force, a period of time longer than that fixed by this

Code had yet to run, shall be completed by the lapse of the period

fixed by this Code to be reckoned from the said day.

(3) No period of time elapsed previously to the said day shall

be computed for the prescription of things or actions which,

according to the law then in force, were not subject to prescription,

and which have become so subject in virtue of this Code.

2117A. With regard to prescription, the referral of any matter to

arbitration in accordance with the provisions of the Arbitration Act

shall have the same effect as a judicial action before a competent

court.

Sub-title I

O F THE C AUSES WHICH P REVENT P RESCRIPTION

2118. Persons who hold a thing in the name of others or the heirs

of such persons, cannot prescribe in their own favour: such are

tenants, depositaries, usufructuaries, and, generally, persons who

hold the thing not as their own.

2119. The persons mentioned in the last preceding article may,

nevertheless, prescribe, if their title is changed by a cause flowing

from a third party, or by the opposition which they may have made

to the right of the owner.

2120. Any person to whom a tenant, depositary, or other mere

holder has transferred the thing under a title capable of transferring

ownership, may prescribe.

2121. (1) No one can prescribe against his own title, in the

sense that no one can change, in regard to himself, the cause for

which he holds the thing.

(2) Nevertheless, a person may prescribe against his own title,

in the sense that he may by prescription obtain his discharge from

an obligation.

Sub-title II

O F THE C AUSES WHICH S USPEND P RESCRIPTION

2122. Prescription runs against -

(a) an absentee;

(b) a vacant inheritance even though a curator has not

been appointed thereto;

(c) the heir during the time for making up the inventory or

for deliberating; and

(d) generally, any other person not included in the

exceptions laid down in the following articles.

2123. Prescription does not run -

(a) as between spouses;

(b) as between the parent and the child subject to parental

authority;

(c) as between the person under tutorship or curatorship

and his tutor or curator until the tutorship or

curatorship ceases, and the accounts are definitely

rendered and approved;

(d) as between the heir and the inheritance entered upon

inventory.

2124. (1) Save as otherwise provided by law, prescription does

not run against minors and persons interdicted.

(2) Nor does it run, during the continuance of marriage, against

any one of the spouses, in any case in which the action competent to

such spouse, if exercised, would vest the defendant with a right of

relief against the other spouse.

(3) Where damages arise from a criminal offence committed

against a minor, prescription shall run from the day on which the victim

attains the age of majority.

2125. Prescription is likewise suspended -

(a) in regard to conditional rights, until the condition is

fulfilled;

(b) in regard to actions for breach of warranty, until

eviction takes place;

(c) in regard to any other action the exercise of which is

suspended by a time, until such time expires;

(d) in regard to an action for damages, during the time

before the commencement of the cause when

negotiations are taking place between all or any of the

parties or their insurers having opposing interests in

the claim;

(e) where a consumer who has a dispute with a trader, has

recourse to an ADR procedure in accordance with the

Consumer Affairs Act, the outcome of which

procedure is not binding on either party, until such

time when the ADR procedure is brought to a

conclusion

Provided that the provisions of article 2 of the

Consumer Affairs Act shall apply in relation to this

paragraph;

(f)

when a qualified entity as defined in the Representative

2023. Actions (Consumers) Act, has brought a representative

action according to the same Act, until the proceedings

are decided definitively.

2126. Prescription commenced and suspended shall continue to

run as soon as the cause of suspension shall cease.

Sub-title III

O F THE C AUSES WHICH I NTERRUPT P RESCRIPTION

2127. Prescription is interrupted when the possessor is deprived,

for more than one year, of the enjoyment of the thing, whether by

the owner or by a third party.

2128. Prescription is also interrupted by any judicial act filed in

the name of the owner or of the creditor, served on the party against

whom it is sought to prevent the running of prescription, showing

clearly that the owner or creditor intends to preserve his right.

2129. The interruption shall be operative even though the

demand, protest, or other judicial act is null owing to a defect in its

form, or is filed before a court which is not the competent court.

2130. (1) No interruption takes place if the act is not served

before the expiration of one month to be reckoned from the last day

of the period of prescription.

(2) Nevertheless, if the party to be served is absent from Malta,

service shall be deemed to be effected by the publication of a notice

in the Government Gazette, within a month to be reckoned from the

last day of the aforesaid period, on the demand of the party filing

th e act , as provided in the Code of Organi zati on and Civil

Procedure.

(3) The said notice shall contain a summary of the act of

interruption, and shall be signed by the registrar of the court before

which the act has been filed.

2131. Prescription is interrupted by a judicial demand, even

though such demand has not been notified to the defendant on

account of his absence or for any other lawful cause, provided the

plaintiff has continued the proceedings against a curator appointed

by the court according to the provisions of the Code of

Organization and Civil Procedure, and has obtained a judgment on

such demand.

2132. (1) The interruption of prescription made by means of a

judicial demand shall be deemed inoperative if the plaintiff

withdraws the action or if the action is deserted, or dismissed.

(2) With regard to the withdrawal or the dismissal of an action,

the provisions of this article shall not apply in cases where the

plaintiff can, according to law, re-institute the action, provided

such action is so re-instituted before the same or another court

within one month from the day of its previous withdrawal or

dismissal, and service thereof is effected in the manner and within

the times established in the two preceding articles, as the case may

be.

2133. Prescription is interrupted if the debtor or possessor

acknowledges the right of the party against whom such prescription

had commenced.

2134. Prescription is also interrupted by a payment on account of

the debt, made by the debtor himself or by a person acting in his

behalf.

2135. The acknowledgment of the debt made by the principal

debtor, or any other act which interrupts prescription as against

such debtor, shall also be effectual as an interruption against the

surety, saving, where the surety has bound himself jointly and

severally with the principal debtor, the provisions of articles 1100

and 1101.

2136. (1) Where prescription is interrupted, the portion of the

prescriptive period already elapsed shall not be reckoned for the

purpose of prescribing.

(2)

Prescription, however, may commence anew.

Sub-title IV

O F THE T IME R EQUIRED FOR P RESCRIPTION

2137. Subject to any other provisions of the law, the prescription

of an action commences to run from the day on which such action

can be exercised, irrespective of the state or condition of the person

to whom the action is competent.

2138. (1) Prescription is reckoned by whole days, and not by

hours.

(2) The days are running days: the months are reckoned

according to the calendar.

2139. (1) Prescription is completed immediately upon the

expiration of the last day of the prescriptive period.

(2) Nevertheless, if the last day is a Saturday or a public

holiday, prescription shall be completed upon the expiration of the

next following day, not being a Saturday or a public holiday.

§ I. O F P RESCRIPTION OF T EN , T HIRTY AND F ORTY YEARS

2140. (1) Any person who in good faith and under a title

capable of transferring ownership possesses an immovable thing

for a period of ten years acquires ownership thereof.

(2) If the title derives from an act which, according to law,

must be registered in the Public Registry, the prescriptive period

does not commence to run except from the day of the registration of

such act.

2141. Good faith must not only exist at the time of acquisition,

but must continue during the whole prescriptive period.

2142. (1) The bad faith of a previous possessor does not

prejudice his successor, whether universal or singular.

(2) Nevertheless, in any such case the successor may not, for

the purposes of prescription, conjoin his possession with that of his

predecessor.

2143. All actions, whether real, personal, or mixed, are barred by

the lapse of thirty years, and no opposition to the benefit of

limitation may be made on the ground of the absence of title or

good faith.

2144. (1) The prescriptive period referred to in articles 2140

and 2143 shall not apply in the case of immovables subject to

entail, or of immovables or actions belonging or competent to

churches or other pious institutions.

(2) In the cases referred to in the said articles, prescription as

regards property or actions mentioned in sub-article (1) of this

article is only completed by the lapse of forty years, provided that

no opposition to the benefit of limitation may be made on the

ground of the absence of title or good faith.

2145. (1) The provisions of the last preceding article shall also

apply in the case of a right, even if ecclesiastical, which cannot be

exercised but seldom.

(2) In any such case, however, the party pleading prescription

must, besides the lapse of forty years, prove also that, within such

period, there were at least three occasions on which such right

could have been exercised, and that on each occasion he exercised

such right, or, as the case may be, that the party to whom such right

was competent failed on each occasion to exercise it.

2146. (1) After twenty-five years from the date of the last

writing, the debtor of an annuity or other yearly payment which is

to continue for more than thirty years may be compelled to give to

the creditor or to the person claiming under him, a new writing

containing an acknowledgment of the debt, or a declaration of the

payments made.

(2) The creditor may require such writing to be, at his expense,

made by means of a public deed.

§ II. Of Certain P articular P rescriptions

2147. The following actions are barred by the lapse of one year

(a) actions of masters and teachers of sciences or arts, for

lessons given by the day or by the month;

(b) actions of keepers of inns, taverns or lodging-houses

for lodging and board furnished by them;

(c) actions of domestic servants or other persons paid by

the month, of artificers or day-labourers for the

payment of their wages, salaries or the supplies due to

them;

(d) actions of carriers by land or water referred to in

articles 1628 to 1631 for the payment of their hire or

wages.

2148. The following actions are barred by the lapse of eighteen

months

(a) actions of tailors, shoemakers, carpenters, masons,

whitewashers, locksmiths, goldsmiths, watch-makers,

and other persons exercising any trade or mechanical

art, for the price of their work or labour or the

materials supplied by them;

(b) actions of creditors for the price of merchandise,

goods or other movable things, sold by retail;

(c) actions of persons who keep educational or

instructional establishments of any kind, for the

payment of the fees due to them;

(d) actions of persons for the payment of their salary;

(e) actions of brokers for brokerage fees;

(f)

actions of any person for the hire of movable things.

2149. The following actions are barred by the lapse of two years

(a) actions of builders of ships or other vessels, and of

contractors in respect of constructions or other works

made of wood, stone or other material, for the works

carried out by them or for the materials supplied by

them;

(b) actions of physicians, surgeons, obstetricians and

apothecaries for their visits or operations or for

medicines supplied by them;

(c) actions of advocates, legal procurators, notaries,

architects and civil engineers, and other persons

exercising any other profession or liberal art, for their

fees and disbursements;

(d) actions of procurators ad litem or other attorneys or

mandataries, for their remuneration, the expenses

incurred by them, indemnities due to them for losses

sustained, and for the reimbursement of advances

made by them.

2150. (1) In regard to the said actions of advocates, legal

procurators or procurators ad litem, the prescriptive period shall

commence to run from the day of the final decision or of the

compromise of the lawsuit or from the day of the cessation of their

mandate.

(2) For the purposes of this article, any act which, although not

forming part of the proceedings of the suit, is, nevertheless,

connected therewith, shall be deemed to be part of such

proceedings.

(3) In regard to fees for advice and to fees or expenses for

judicial letters, protests, warrants, applications or other acts or

services not connected with a suit pending or commenced within

two years from the day on which the advice, act or service has been

given or has taken place, the prescriptive period shall commence to

run from that day.

2151. (1) In the cases referred to in the last four preceding

articles, prescription takes place, even though there may have been

a continuation of supplies, deliveries on credit, labour, services or

other work.

(2) Nevertheless, in such case, where the claim in respect of

such supplies, deliveries, labour, services, or other work is

evidenced by an approved account or other written declaration of

the debtor, the action shall not be barred except by the lapse of five

years to be reckoned from the date of such account or declaration.

2152. (1) Advocates and legal procurators are released from

any obligation to account for papers relating to lawsuits or advice

on the expiration of one year from the day when such lawsuits have

been decided or otherwise disposed of, or such advice given.

(2) They are likewise released from any obligation to account

for any papers which may have been delivered to them for the

purpose of commencing a lawsuit, on the expiration of two years

from such delivery, if within such time the lawsuit has not been

commenced.

(3) They may, however, be called upon to declare on oath

whether they are in possession of such papers, or whether they

know where such papers are to be found.

2153. Actions for damages not arising from a criminal offence

are barred by the lapse of two years.

2154. (1) With regard to the prescription of civil actions for

damages arising from criminal offences, the rules laid down in the

Criminal Code relating to the prescription of criminal actions shall

be observed.

(2) Nevertheless, any person who has stolen a thing, or who has

become the possessor thereof by means of an offence of fraud, or

who has received or bought such thing, knowing it to have been

stolen or fraudulently acquired, cannot prescribe for it,

notwithstanding any lapse of time.

2155. (1) The action for the recovery from a third party of a

movable thing which has been lost or stolen, where such action is

competent under article 559, is barred by the lapse of two years, if

the third party received the thing in good faith.

(2) If he received it in bad faith the provisions of sub-article (2)

of the last preceding article shall apply.

2156. The following actions are barred by the lapse of five years

(a) actions for payment of yearly ground-rent, perpetual or

life annuities, interest on annuities ad formam bullae

created before the 14th August, 1862 and for the

payment of fines due upon a sale or other alienation of

emphyteutical tenements;

(b) actions for payment of maintenance allowances;

(c) actions for payment of rent of urban or rural property;

(d) actions for payment of interest on sums taken on loan

or for any other cause, and, generally, of any other

thing payable yearly or at other shorter periodical

terms;

(e) actions for the return of money given on loan, if the

loan does not result from a public deed;

(f)

actions for the payment of any other debt arising from

commercial transactions or other causes, unless such

debt is, under this or any other law, barred by the lapse

of a shorter period or unless it results from a public

deed;

(g) except as provided for in any special law, actions of the

Government of Malta for the payment of judicial fees,

customs or other dues

Provided that actions referred to in paragraphs (a) and (c),

where such payments are due to the Government of Malta, shall be

barred by prescription by the lapse of ten years.

2157. An action for the rendering of accounts against any tutor,

curator, mandatary, or other administrator, is barred by the lapse of

five years from the day of the cessation of the management, or by

t h e l a p s e o f o n e y e a r f r o m t h e d e a t h o f t h e t u t o r, c u r a t o r,

mandatary, or other administrator.

2158. The prescriptions established in articles 2147 to 2157 may

be set up even against the party who has paid for the debtor, unless

the payment was made on the demand or with the concurrence of

the debtor himself, or unless the payor was, as surety, or as a joint

and several debtor, or for any other cause, bound to pay.

2159. Such prescriptions run against minors and persons

interdicted, saving their right to relief against the tutor or curator.

2160. (1) The prescriptions established in articles 2147, 2148,

2149, 2156 and 2157 shall not be effectual if the parties pleading

them, do not of their own accord declare on oath, during the cause,

that they are not debtors, or that they do not remember whether the

thing has been paid.

(2) If the oath is deferred to the heirs of the person whom the

plaintiff alleges to have been the debtor, or to parties claiming

under such person, the said prescriptions shall not be effectual if

such heirs or parties do not declare that they do not know that the

thing is due.

(3) In proceedings for the collection of debts referred to in the

proviso to article 2156, where a party to the proceedings declares

on oath that he or she is not a debtor, such party shall be required to

give reasons why he or she considers himself or herself not to be a

debtor.

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