CIVIL CODE (preamble—civilcode)
Table of Provisions (1,348)
Statutory Text (1,348 Articles)
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
The title of this Code is the Civil Code.
BOOK FIRST
OF PERSONS
PRELIMINARY
(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.
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
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.
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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.
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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.
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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.
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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
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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.
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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.
(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.
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.
CIVIL CODE
(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
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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
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(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.
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.
(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.
(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.
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.
(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.
(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.
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.
(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.
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.
(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
(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.
The children are bound to maintain their parents or other
ascendants, who are indigent.
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.
Repealed by: XXI.1993.7.
Repealed by: XXI.1993.7.
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.
(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.
(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.
(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.
(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.
(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.
Repealed by: XXI.1993.12.
(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.
(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.
(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.
(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.
(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.
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.
(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.
Repealed by: XXI.1993.15.
(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.
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.
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.
Repealed by: XXI.1993.18.
Repealed by: XXI.1993.18.
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.
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.
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
(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.
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.
(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.
Either of the spouses may demand separation on the ground
of adultery on the part of the other spouse.
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.
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.
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.
(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.
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.
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.
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.
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.
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.
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.
(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.
Repealed by: XXI.1993.30.
Repealed by: XXI.1993.30.
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.
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.
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.
(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.
(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.
(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.
(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.
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.
(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.
(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.
(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.
(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.
(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.
(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.
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.
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.
(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.
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.
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
(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.
* 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.
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.
(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.
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.
(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.
(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.
(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.
(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.
(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.
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.
(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.
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.
(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
A child conceived in wedlock is held to be the child of the
spouses.
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.
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.".
(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.
(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.
Repealed by: XXI.1993.37.
Repealed by: XXI.1993.37.
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.
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.
(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.
The filiation of a child born three hundred days after the
dissolution or annulment of the marriage may be impeached by any
person interested.
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.
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.
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.
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.
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
(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.
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.
(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.
(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.
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.
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.
No prescription shall run for an action for a child to establish
his proper filiation.
(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
(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).
(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.
(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.
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.
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.
(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.
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.
(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.
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.
Repealed by: XVIII.2004.15.
Repealed by: XVIII.2004.15.
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.
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.
Repealed by: XVIII.2004.17.
An acknowledgment of a child conceived or born in
wedlock may be impeached by the child as well as by any other
party interested.
A judicial demand for a declarator of paternity or maternity
may also be contested by any party interested.
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.
(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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
(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.
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
(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.
(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.
(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.
(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
CIVIL CODE
(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.
(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.
(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.
(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.
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.
(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.
(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.
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.
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.
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).
(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.
(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.
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.
(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.
(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.
(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.
(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.
(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.
(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.
(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).
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.
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.
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.
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.
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.
(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.
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
(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
(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.
(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.
(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.
The parents jointly represent their children, whether born
or to be born, in all civil matters.
(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.
(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.
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.
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.
(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.
(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.
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.
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.
(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.
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.
(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.
(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.
Repealed by: XXI.1993.59.
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
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.
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.
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.
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.
(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.
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.
(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
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
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
(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.
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.
(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.
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.
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.
(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.
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.
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.
(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.
(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.
(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.
(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.
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
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.
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.
(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.
(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.
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.
(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.
(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.
(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.
(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.
(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.
(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.
(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.
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.
(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.
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.
(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
(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
(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.
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.
(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.
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
(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.
(Deleted by Act II.2012.14).
(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.
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
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
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.
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.
(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.
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.
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.
(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.
(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.
(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.
(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.
(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.
(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
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.
(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.
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.
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.
(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.
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.
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.
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.
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.
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.
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.
(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.
(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.
(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.
(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.
(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.
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.
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
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.
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.
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.
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.
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.
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
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.
(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.
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.
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
(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
(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.
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.
Acts of birth or death shall be drawn up by the officers
appointed by the Minister responsible for the Public Registry in that
behalf.
Acts of marriage shall be drawn up and signed as provided
in article 293.
(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.
(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,
(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.
Each description of acts shall have a distinct numbering,
beginning from the first and ending with the last act received
during each year.
(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.
(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.
(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.
(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.
(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.
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.
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.
Every act or document received shall, even after it is
registered, be preserved.
(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.
(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.
(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.
(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.
(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.
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.
(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.
(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.
(Deleted by Act XI.2015.18).
(Deleted by Act XI.2015.18).
(Deleted by Act XI.2015.18).
(Deleted by Act XI.2015.18).
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.
Public holidays shall not suspend the running of any of the
times established in this Title.
(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.
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.
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.
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.
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).
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.
(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.
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.
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.
(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.
(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.
(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
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.
(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.
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.
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.
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.
(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.
(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.
(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.
(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.
(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.
(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.
(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.
(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.
It shall be lawful for the officer drawing up an act of birth
to demand to see the child, before drawing up such act.
(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.
(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.
(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.
(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.
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.
(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.
(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.
(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.
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.
(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
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).
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.
(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).
(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
(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.
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.
(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.
(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.
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.
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.
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.
(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.
(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.
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.
(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
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
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.
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.
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.
(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
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.
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.
Ships or other water-craft, baths or other floating
structures are also movables.
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.
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.
(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.
(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.
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
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.
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.
(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.
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.
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.
Every owner may compel his neighbour to fix, at joint
expense, by visible and permanent marks, the boundaries of their
adjoining tenements.
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
(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
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.
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.
(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.
(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
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.
(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.
(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.
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.
The alienation fines in emphyteutical grants shall belong
to the usufructuary.
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.
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.
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.
A usufructuary may assign the enjoyment of his right
whether gratuitously or for valuable consideration.
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.
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.
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.
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.
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.
The owner may not by his own act or in any other manner
whatsoever prejudice the rights of the usufructuary.
(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.
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
(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.
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.
(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.
(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.
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.
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.
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.
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.
(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.
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.
(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.
The administrator may at any time be removed for just
cause, upon the demand either of the owner or of the usufructuary.
The usufructuary may at any time give security and take
over the administration of the property.
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.
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.
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.
(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.
(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.
(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.
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.
(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.
The usufructuary is bound to pay the ground-rent and all
other annual charges upon the tenement.
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.
(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.
(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.
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.
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.
(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.
(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
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.
(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.
(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.
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.
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.
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.
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.
Where only a part of the thing subject to the usufruct
perishes, the usufruct shall continue to be operative as to the
remainder.
(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.
Where the subject of the usufruct is a ship, and the ship is
in such condition as to be beyond repair, the usufruct terminates.
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
The rights of use and habitation are acquired and lost in
the same manner as the right of usufruct.
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.
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.
(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.
Habitation is the real right of a person to live with his
family and according to his condition in a house belonging to
another.
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.
(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.
The grantee of a right of use or habitation shall in the
enjoyment thereof act as a bonus paterfamilias.
(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.
(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.
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
(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.
Easements are created either by law or by act of man.
Sub-title I
E ASEMENTS C REATED BY L AW
(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
(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.
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.
(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.
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
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.
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.
(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.
(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.
(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.
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.
(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.
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.
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.
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.
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.
(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.
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.
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.
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.
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.
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.
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.
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.
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.
(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.
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.
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.
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.
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.
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.
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
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.
(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.
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.
(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.
(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.
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.
(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.
(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.
(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.
(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.
(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
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
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.
(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.
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.
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.
(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.
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.
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.
(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
It shall be lawful for owners to establish, in accordance
with article 400, any easement which is in no way contrary to
public policy.
(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.
(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.
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.
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.
(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.
(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.
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.
(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.
(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.
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.
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.
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.
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.
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.
(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
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.
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.
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.
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.
(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.
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.
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.
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.
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
(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.
(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.
(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.
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.
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.
The manner of enjoying an easement may be prescribed as
the easement itself.
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.
(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.
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.
(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
(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.
(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.
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.
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.
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.
(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.
(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).
(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.
(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
(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.
(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.
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.
(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.
(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.
(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.
Each of the co-owners may claim his share of the property
in kind.
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.
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.
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.
(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.
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.
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.
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.
(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.
(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.
(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.
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.
(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
(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.
Any of the co-owners, whatever his share of the property,
may demand the sale by licitation, where competent.
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.
(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.
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).
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.
(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.
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.
* 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
(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.
(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.
Acts which are merely facultative or of mere sufferance
cannot found the acquisition of possession.
(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.
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.)
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.
(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.
(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.
Good faith is presumed, and the party alleging bad faith is
bound to prove it.
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
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.
(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.
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.
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.
(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.
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
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.
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.
(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.
(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.
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.
(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.
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.
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.
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.
(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.
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
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.
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.
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.
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.
The provisions of the last three preceding articles shall
apply to the possessor of any other universitas rerum.
(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.
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
(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.
(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
(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
(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.
(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.
(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.
(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.
(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
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
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
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.
(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.
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.
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
(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.
(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.
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.
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.
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.
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.
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.
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.
(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.
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.
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.
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.
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
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.
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.
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
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.
(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.
(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.
(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.
(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.
(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.
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.
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
(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.
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.
(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.
Any will made by a person subject to incapacity is null,
even though the incapacity of the testator may have ceased before
his death.
(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.
(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.
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.
Repealed by: XVIII.2004.52.
Repealed by: XVIII.2004.52.
(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.
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.
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.
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.
(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.
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.
(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.
(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.
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
(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
(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.
(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.
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.
(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.
Repealed by: XVIII.2004.60.
(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.
(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.
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.
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.
Repealed by: XVIII.2004.65.
(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.
(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.
Where the person disinherited predeceases the testator, the
disherison shall not prejudice the rights of his descendants.
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.
Where the ground of disherison is not stated, or is not
proved, the person disinherited shall only be entitled to the
reserved portion.
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
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.
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.
(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.
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.
The surviving spouse shall also have the right of use over
any of the furniture in the matrimonial home belonging to the
deceased spouse.
The provisions of article 318 shall apply in relation to the
right of use referred to in article 635.
The provisions of article 633(3), (6), (7) and (8) shall
mutatis mutandis apply to the right of use granted by article 635.
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.
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.
Repealed by: XVIII.2004.73.
Repealed by: XVIII.2004.73.
Repealed by: XVIII.2004.73.
Repealed by: XVIII.2004.73.
Repealed by: XVIII.2004.73.
Repealed by: XVIII.2004.73.
Repealed by: XVIII.2004.73.
O F THE A BATEMENT OF T ESTAMENTARY D ISPOSITIONS
EXCEEDING THE DISPOSABLE P ORTION
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.
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.
Repealed by: XVIII.2004.75.
Where the value of the donations exceeds, or is equal to,
the disposable portion, all testamentary dispositions shall be
ineffectual.
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.
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.
(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
A will may be either public or secret.
(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.
(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.
(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.
(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.
(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.
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.
(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.
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.
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.
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.
(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.
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.
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.
(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.
(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.
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.
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.
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
(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.
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.
(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.
(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.
(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.
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.
(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.
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.
(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.
(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
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.
(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.
(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
Any testamentary disposition made, by what is commonly
known as implied nuncupation, or per relationem ad schedulam is
void.
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.
(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.
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.
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.
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.
(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.
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.
(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.
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.
(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.
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.
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.
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.
(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.
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.
(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.
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.
(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.
(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.
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.
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.
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.
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
Any disposition, by universal or singular title, may be
either pure or conditional.
(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.
(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.
Any condition restraining the heir from availing himself of
the benefit of inventory shall be considered as if it had not been
attached.
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.
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.
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.
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.
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.
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.
(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
(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.
(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).
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.
In the case of alternative legacies, the right of selection
shall be deemed to be given to the heir.
(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.
(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.
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.
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.
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.
(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.
(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.
(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.
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.
(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.
(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.
(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
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.
(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.
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.
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.
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.
(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
(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.
(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.
(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.
A testamentary disposition shall lapse with regard to the
heir or legatee who renounces it, or who is incapable of taking.
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.
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.
Repealed by: XVIII.2004.81.
Repealed by: XVIII.2004.81.
§ VI. O F S UBSTITUTION AND OF E NTAILS
(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.
(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.
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.
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.
(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.
(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.
(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.
(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.
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.
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.
(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
It shall be lawful for a testator to appoint one or more
testamentary executors.
No person who is under a disability to contract
obligations, may be a testamentary executor.
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.
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.
(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.
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.
Any disposition calculated to exempt the testamentary
executor from the obligation of rendering an account shall be
inoperative.
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.
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.
(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.
The heir may prevent the sale by offering the means with
which to pay the debts and discharge the legacies.
The office of the testamentary executor shall not descend
to his heirs.
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.
The expenses incurred by the testamentary executor in the
discharge of his duties shall be borne by the inheritance.
(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.
(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.
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
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.
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
(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.
(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.
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.
A will which is void cannot have the effect of a notarial
act so as to revoke a previous will.
Any testamentary disposition which has been revoked, can
only revive by a fresh will.
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.
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
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.
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.
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.
(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.
(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.
(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.
In the direct line, as many degrees are counted as there are
generations, not including the common ancestor.
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
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.
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.
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.
(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.
Repealed by: XVIII.2004.85.
O F R EPRESENTATION
Representation operates so as to put the representative in
the place, degree, and rights of the person represented.
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.
Representation does not take place between ascendants
the nearest relation excludes the others.
(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.
(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.
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.
It shall be lawful to represent the person whose inheritance
has been renounced.
§ I. O F S UCCESSION BY D ESCENDANTS AND SURVIVING SPOUSE
(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.
Where the deceased has left children or other descendants
but no spouse, the succession devolves upon the children and other
descendants.
Where the deceased has left no children or other
descendants but is survived by a spouse the succession devolves on
the spouse.
(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
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.
(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.
Succession between collaterals shall not extend beyond
twelfth degree.
(Deleted by Act XV.2012.24).
§ II I. O F THE RIGHTS OF THE GOVERNMENT
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.
Repealed by: XVIII.2004.86.
Repealed by: XVIII.2004.86.
Repealed by: XVIII.2004.86.
Repealed by: XVIII.2004.86.
Repealed by: XVIII.2004.86.
Repealed by: XVIII.2004.86.
Repealed by: XVIII.2004.86.
Succession to
property of
illegitimate child
dying without issue
or spouse.
Repealed by: XVIII.2004.86.
Succession to
property of
illegitimate child
dying without
issue, but survived
by spouse.
Repealed by: XVIII.2004.86.
Rights competent
to surviving spouse
by person leaving
children.
Substituted by
XXI.1993.73.
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.
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.
Repealed by: XVIII.2004.86.
Surviving spouse
to bring into
account property
received from
deceased.
Repealed by: XVIII.2004.86.
Where spouses are
separated.
Amended by
XXI.1993.75.
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
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.
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.
Repealed by: XVIII.2004.87.
Repealed by: XVIII.2004.87.
Repealed by: XVIII.2004.87.
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.
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.
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.
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.
Repealed by: XVIII.2004.88.
Repealed by: XVIII.2004.88.
Repealed by: XVIII.2004.88.
Repealed by: XVIII.2004.88.
Repealed by: XVIII.2004.88.
(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
No person is bound to accept an inheritance devolved
upon him.
An inheritance may be accepted unconditionally, or under
benefit of inventory.
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.
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.
(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.
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.
(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.
(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.
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.
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.
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.
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.
(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.
The right of accepting a vacant inheritance is prescribed
by the lapse of thirty years.
O F THE R ENUNCIATION OF AN I NHERITANCE
(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).
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.
(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.
(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.
(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.
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.
(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.
(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.
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.
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.
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.
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.
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.
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.
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.
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.
(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
It shall be lawful for the heir, notwithstanding any
prohibition of the testator, to avail himself of the benefit of
inventory.
(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.
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.
(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.
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.
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.
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.
(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.
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.
(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.
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.
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.
An heir guilty of having fraudulently omitted to include in
the inventory property belonging to the inheritance, shall forfeit the
benefit of inventory.
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.
(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.
The heir who enters upon inventory shall not in his
administration, be answerable except for gross negligence.
The creditors and the legatees may demand that a time be
assigned to the heir for rendering his account.
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.
(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.
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.
(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.
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.
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.
(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.
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.
The expenses of the inventory and of the account shall be
at the charge of the inheritance.
O F V ACANT I NHERITANCE
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.
(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.
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
(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.
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.
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.
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.
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.
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.
(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
(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.
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.
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.
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).
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.
(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.
(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.
(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.
Collation is only due to the inheritance of the donor.
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.
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.
The expenses of maintenance, education, and instruction,
the ordinary expenses on the occasion of weddings, and customary
presents, are not subject to collation.
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.
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.
Repealed by: XVIII.2004.98.
The fruits of, and the interest on things subject to
collation, shall only be due from the day of the opening of the
succession.
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.
(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.
(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.
(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.
Repealed by: XVIII.2004.100.
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.
Repealed by: XVIII.2004.100.
Repealed by: XVIII.2004.100.
Repealed by: XVIII.2004.100.
(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
(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.
(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.
(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.
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.
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.
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.
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
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.
(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.
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.
(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.
(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.
The warranty in regard to the solvency of the debtor of an
annuity shall not last beyond the five years following the partition.
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.
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.
(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.
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.
(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.
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.
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
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.
The provisions of the Succession Regulation shall apply to
cross-border successions from 17 August 2015 onwards.
(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.
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.
(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.
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.
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.
(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.
(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.
(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.
(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
(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.
(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).
(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.
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.
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.
(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.
(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.
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.
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.
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
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
A contract is an agreement or an accord between two or
more persons by which an obligation is created, regulated, or
dissolved.
(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.
(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.
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.
When the advantage or loss, whether to both parties or one
of them, depends on an uncertain event, the contract is aleatory.
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
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
(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.
Any contract entered into by a person who has not the use
of reason, or is under the age of seven years is null.
(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.
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.
(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.
(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.
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.
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
Where consent has been given by error, or extorted by
violence or procured by fraud, it shall not be valid.
An error of law shall not void the contract unless it was
the sole or principal inducement thereof.
(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.
(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.
(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.
(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.
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.
(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
(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.
(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.
(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.
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.
(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
An obligation without a consideration, or founded on a
false or an unlawful consideration, shall have no effect.
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.
Where the consideration stated is false, the agreement
may, nevertheless, be upheld, if another consideration is proved.
The consideration is unlawful if it is prohibited by law or
contrary to morality or to public policy.
(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
(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.
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.
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.
(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.
(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.
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.
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.
(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.
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.
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
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.
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.
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.
Words susceptible of two meanings shall be taken in the
meaning which is more consistent with the subject-matter of the
contract.
Whatever is ambiguous shall be interpreted according to
the usage of the place where the contract is made.
Customary clauses shall be deemed to be included in a
contract, even though they are not expressed.
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.
In case of doubt, the agreement shall be interpreted against
the obligee and in favour of the obligor.
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.
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
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.
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.
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.
The voluntary agent shall be bound to use in the
management of the business all the diligence of a bonus
paterfamilias.
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.
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.
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.
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.
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.
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.
(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.
(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.
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.
(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.
(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.
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.
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.
(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.
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
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.
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.
Every person, however, shall be liable for the damage
which occurs through his fault.
(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.
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.
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.
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.
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.
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.
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.
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.
(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.
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.
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.
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.
An action for damages shall lie even where the party
causing the damage was at the time in a state of intoxication.
Where damage has been unjustly caused, any person who
has wilfully contributed thereto with advice, threats, or commands,
shall also be liable.
(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.
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.
(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.
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.
(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.
(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.
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.
(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
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.
(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.
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.
(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.
(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.
Every condition must be fulfilled in the manner in which
the parties have in all likelihood desired and intended that it should
be fulfilled.
(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.
(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.
(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.
(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.
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
(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.
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.
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
(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.
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.
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.
(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
(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.
Time shall not suspend the obligation, but shall only delay
the execution thereof.
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.
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.
In computing a time the day shall be reckoned at twenty-
four hours: the month and the year according to the calendar.
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.
(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.
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.
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.
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
(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.
The option shall belong to the debtor, unless it has been
expressly granted to the creditor.
(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.
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.
(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.
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.
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.
The same rules shall apply where the alternative
obligation includes more than two things.
(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
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
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.
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.
(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.
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
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.
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.
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.
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
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.
(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.
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.
(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.
(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.
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.
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.
(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.
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.
(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.
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.
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
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.
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.
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
(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.
(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
(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.
(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.
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
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.
(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.
(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.
(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.
(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.
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.
(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
(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
CIVIL CODE
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.
(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.
(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.
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.
(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.
(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).
(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.
(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.
(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.
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
Where any person fails to discharge an obligation which
he has contracted, he shall be liable in damages.
(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.
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.
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.
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.
(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.
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.
(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.
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.
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.
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.
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.
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.
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.
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.
The interest referred to in the last preceding article is due,
without the creditor being bound to prove any loss.
(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.
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.
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.
(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
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
Payment means the performance of an obligation, whether
the subject-matter of the obligation is to give or to do.
(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.
(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.
(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.
(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.
Any payment made by a person incapable of alienating
may, in the interest of such person, be annulled.
(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.
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.
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.
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.
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.
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.
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.
(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.
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.
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.
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.
(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
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.
(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.
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.
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
(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.
(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.
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.
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.
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
(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.
(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.
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.
(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.
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.
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.
(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
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.
(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.
(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.
(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.
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.
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.
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.
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.
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.
(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.
(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
(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.
(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.
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.
(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.
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.
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
(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.
(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.
Time for payment gratuitously granted shall not operate so
as to bar a set-off.
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.
(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.
(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.
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.
(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.
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
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.
(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
(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.
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
(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.
(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.
(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.
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.
Rescission on the ground of lesion cannot be demanded by
a person who has attained majority.
(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.
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.
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.
(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.
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.
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.
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.
(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.
(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.
(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.
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.
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.
(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.
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.
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.
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.
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.
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
(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.
(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.
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.
(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
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.
(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).
(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.
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.
(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.
Deleted by Act XXII.2025.7.
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.
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.
(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.
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.
No marriage contract, variation or counter-declaration
shall be operative in regard to third parties, unless it is registered in
the Public Registry Office.
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
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.