PREMIUM BONDS ACT

PREMIUM BONDS

CHAPTER 223

PREMIUM BONDS ACT

To make provision for the issue, promotion and management of premium

bonds.

(16th March, 1971) *

ACT VII of 1971, as amended by Acts XXIX of 1979, XXXI of 1981, XIII

of 1983 and XVI of 1997; Legal Notice 411 of 2007; and Act XXVI of 2014.

The short title of this is the Premium Bonds Act.

In this Act, unless the context otherwise requires -

"the Account" means the Premium Bonds Income Account held

with the Bank under article 18;

"the Bank" means the Central Bank of Malta established under

the Central Bank of Malta Act;

"bond" means a premium bond issued under this Act;

"financial year" has the same meaning as it has for the purposes

of the Constitution;

"the Fund" means the Premium Bonds Fund established under

article 17;

"the Gazette" means the Malta Government Gazette;

"the Government" means the Government of Malta;

"holder" in relation to a bond means the person in whose name

the bond appears in the register;

"House" means the House of Representatives;

"Minister" means the Minister responsible for finance;

"percentage rate" means a rate per cent per annum on the value

of a bond;

"prescribed" means prescribed by regulations made under this

Act;

"register" means the register of bonds kept for the purposes of

this Act under article 7 thereof; and

"registered" shall be construed accordingly.

(1) Subject to the provisions of this Act, it shall be lawful

for the Minister to authorise the issue of premium bonds.

(2) Where the issue of bonds has been authorised under

subarticle (1) it shall be lawful for the Bank, subject to the

provisions of this Act and of any regulations made thereunder and

under and in accordance with such directions as the Minister may

give, to issue, promote and administer bonds for or on behalf of the

Government.

*See Government Notice No. 226 of 16th March, 1971.

PREMIUM BONDS

(3) Any act done and any preliminary expenses incurred in

connection with the issue, promotion and administration of bonds

before the coming into force of this Act shall have the same effect

and validity as if such acts had been validly done and such

expenses been lawfully incurred under this Act; and any act or

thing so commenced but remaining unfinished at the date of the

coming into force of this Act may be continued under this Act as if

such act or thing had been initiated under this Act.

(1) Bonds shall be issued in such denomination and may be

purchased in such denomination and up to such amount as may be

prescribed.

(2) Applications for the purchase of bonds shall be made to the

Bank or to such agents as may be appointed by the Bank.

The purchaser of a bond shall be entitled to obtain from the

Bank a bond certificate made out in such form as the Bank may

deem proper so however that all bonds’ certificates shall be issued

in the same form

Provided that where more than one bond is purchased by

the same person at any one time the purchaser may be issued with a

document in lieu of the bonds’ certificate in respect of the bonds

purchased, specifying the total number of bonds held and the

registered number of each of such bonds; but for all other purposes

of this Act and of any regulations made thereunder each of the

bonds shown in the document in lieu of certificates shall be deemed

to be a separate registered bond in the same way as if a separate

bond certificate had been issued in respect of each of them.

Save as may otherwise be prescribed, bonds shall not be

transferable.

(1) The Bank shall cause a register to be kept of all bonds

and of the transactions relating thereto and shall cause such entries

to be made therein as may be necessary to show the names,

addresses and other relevant details of the holders of the bonds

registered therein.

(2) Save as may otherwise be prescribed, no person shall be

entitled to any bond or to any payment thereunder unless he is the

holder thereof.

The entries in the register relating to the holders of bonds

and to transactions concerning the bonds registered therein shall be

conclusive evidence of the facts, matters and particulars to which

those entries relate; and a document purporting to be issued by the

Bank certifying that it is a true copy of such an entry in the register

as aforesaid shall be receivable in evidence in any judicial

proceedings and shall, until the contrary is proved, be evidence of

the contents of the entry in the register of which it purports to be a

true copy.

(1) There shall be held in each month after the third

calendar month following the month during which bonds are first

offered for sale a draw, to be held in the prescribed manner, for the

PREMIUM BONDS

allocation of the monthly prize fund to be determined in accordance

with article 11.

(2) The time and place of the draw shall be appointed by the

Minister and notice thereof shall be published in the Gazette

Provided that at any time before the draw is held the

Minister may alter the time and the place of the draw or either of

them and in any such case notice of the alteration shall be

published in the Gazette as soon as practicable

Provided further that if on the day or days appointed for the

draw as aforesaid the persons charged with the supervision of the

draw are satisfied that the draw cannot be held or cannot be

completed on that day or on those days they shall order the draw to

be postponed and notify the Minister forthwith of their decision;

and in any such case the Minister may authorise the draw to be

continued on subsequent days or direct that the draw shall be held

at such time and place as he may appoint; and where the time or

place of the draw is so altered notice thereof shall be published in

the Gazette.

(3) The place where the draw is held shall be accessible to

members of the public during the draw.

(1)

A bond shall be eligible to participate in a draw -

(a) if it has been registered for three consecutive calendar

months following the month in which it was

purchased, before the draw is held; and

(b) if it has not been repaid before the first day of the

month in which the draw is held.

(2) A bond shall participate in every draw held while it is

eligible to participate therein under subarticle (1)

Provided that the holder of a bond shall not be entitled to

more than one prize in any one draw in respect of the same bond,

and if such bond is drawn more than once in any one draw he shall

be allotted the highest prize for which it is so drawn.

(1) The prize fund for each draw shall be determined by

calculating the current percentage rate for one month on each bond

eligible to participate in that draw

Provided that the prize fund for any draw shall in no case be

less than thirteen thousand and nine hundred and seventy-six euro

and twenty-four cents (13,976.24).

(2) The percentage rate shall be established from time to time

by the Minister after consultation with the Bank and shall be

published in the Gazette.

(3) The number and value of the prizes shall be such as the

Minister shall, from time to time, after consultation with the Bank,

determine and publish in the Gazette.

A prize payable under this Act shall be deemed not to be

income for the purposes of the Income Tax Act.

PREMIUM BONDS

(1) As soon as practicable after a draw the registered

numbers of the winning bonds shall be published in the Gazette and

the Bank shall notify by letter every person in whose name a

winning bond is registered.

(2) Subject to the provisions of this Act and of any regulations

made thereunder a prize payable under this Act shall be paid to the

person in whose name the winning bond in respect of that prize is

registered.

(1) A prize shall not be payable -

(a) if the bond drawn in respect of that prize is not

presented before the expiration of twelve months from

the date of issue of the notification given under article

13; or

(b) if the bank declares that the bond is invalid; or

(c) if the bond contains any alteration, erasure or abrasion

of any of the numbers printed thereon;

and in respect of any of the matters aforesaid the decision of the

Bank shall be final

Provided that the Bank may at its discretion effect payment

of the prize, under such conditions as it may deem fit to impose, if

the claimant’s inability to comply with paragraph (a) is notified to

the Bank in writing by the claimant and such notice is received by

the Bank within the period of twelve months mentioned in that

paragraph.

(2) Any prize which remains unpaid in accordance with

subarticle (1) shall be forfeited to the Government and paid into the

Account.

Subject to the provisions of this Act and of any regulations

made thereunder, bonds shall be repayable at their face value on

application

Provided that no application for repayment shall be

entertained if the bond has not participated in at least one draw.

Where the Bank is unable, for any reason, to obtain a valid

discharge for any payment falling to be made to any person in

respect of a bond, it may, unless otherwise provided by or under

this Act, open an account in the Government Savings Bank for the

benefit of the person to whom payment appears to be due and may,

until payment can be effected to the said person or until a valid

payment can otherwise be made, retain the amount due in the said

account.

(1) There shall be established a fund to be called the

Premium Bonds Fund, and there shall be paid into the Fund all

proceeds derived from the sale of bonds and there shall be paid out

of the Fund all repayments of bonds.

(2) The Fund shall be held and administered by the Bank in

accordance with such directions as the Minister, after consultation

PREMIUM BONDS

with the Bank, may give.

(3) The repayment of all bonds outstanding at any time and all

other payments due under this Act are guaranteed by the

Government and such moneys as may be required to effect any

payment as aforesaid under the said guarantee shall be a charge on

the Consolidated Fund and shall be payable out of the said

Consolidated Fund and the assets of the Government.

(1) All dividends, interest and other revenue derived from

investments or other employment of moneys in the Fund made

under article 17(2) and all sums due to the Government under

article 14(2) shall be paid into an account to be called the Premium

Bonds Income Account and to be held with the Bank.

(2) There shall be charged upon and paid out of the Account

without any further appropriation other than this Act

(a) all expenses relating to the promotion and

administration of the bonds and all other charges

connected therewith, including all preliminary

expenses incurred or paid before the coming into force

of this Act; and

(b) all sums due by way of a prize under this Act and all

other charges and expenses connected with the draw

and with the distribution of prizes under this Act.

(1) Without prejudice to the provisions of article 17(3), if

at any time during any financial year the amount to the credit of the

Account is insufficient to meet the expenses and charges due on the

said account in accordance with article 18(2), the Minister may

advance to and the Bank shall pay into the said Account such sum

or sums as may be necessary to meet the expenses and charges

aforesaid under such terms and conditions as the Minister, after

consultation with the Bank, may determine.

(2) If on the last day of any financial year there is a surplus in

the Account, the Minister may, after consultation with the Bank,

direct the transfer of the surplus or of any part thereof to the

Consolidated Fund

Provided that no such transfer as aforesaid may be directed

by the Minister unless the liquid assets of the Fund together with

the estimated market value of the investments held by the Fund as

on that day and any transfer of surplus from the Account into the

Fund under this proviso exceed by at least fifteen per cent the

amount of bonds outstanding on that day; and in any such case any

surplus in the Account shall either be retained in the Account or

transferred to the Fund, or partly so retained and partly so

transferred, as the Minister may, after consultation with the Bank,

direct.

The Bank shall keep or cause to be kept proper accounts

and other appropriate records relating to the issue, promotion and

management of bonds and to the management of the prize fund and

all such accounts and records shall be audited by the Auditor

PREMIUM BONDS

General.

The Bank shall, at least not later than three months before

the beginning of each financial year, commencing with the first

financial year following the year in which bonds are first issued,

submit to the Minister an estimate of expenditure expected to be

incurred in that year on the issue, promotion and management of

bonds and an estimate for the same period of the receipts expected

to accrue to the Account.

(1) The Bank shall, not later than three months after the

close of each financial year, submit to the Minister

(a) a statement of the assets and liabilities of the Fund as

on the last day of the financial year to which the

statement relates;

(b) a statement of the position of the Account as on the

day aforesaid;

(c) a statement of the amount of bonds outstanding on the

day aforesaid, showing the bonds issued and repaid

during the year; and

(d) a list of the securities and other investments held by

the Fund as on the day aforesaid, showing in respect of

each such security or investment the nominal value,

the purchase price and the last known market value

thereof.

(2) The statements and the list aforesaid shall be duly signed

for and on behalf of the Bank and shall be certified by the Auditor

General.

(3) The Minister shall cause the statements and the list

submitted to him under this article to be published in the Gazette

not later than one month after he has received them.

(4) Nothing in the foregoing provisions of this article shall be

construed as precluding the Minister from requiring the Bank to

submit to him such further information and documents relating to

bonds and the management thereof as he may deem necessary or

expedient.

For the purposes of the Criminal Code any document

issued under or in pursuance of this Act entitling any person to any

payment under this Act or to any other document entitling a person

to any such payment shall be deemed to be a document upon the

presentation of which a payment may be obtained within the

meaning of article 167 of the said Code, and the provisions of that

Code shall apply accordingly.

The Minister may make and, when made, amend, repeal

and re-enact regulations concerning all matters necessary or

expedient for giving effect to any of the provisions of this Act and,

without prejudice to the generality of the foregoing, to make

provision for

(a) the value of each bond in Malta currency;

(b) the manner of purchase of bonds;

PREMIUM BONDS

(c) the maximum holding of bonds by any person;

(d) the eligibility of persons to be holders of bonds;

(e) the method of payment of any sum payable under this

Act;

(f) matters relating to the eligibility of bonds for a draw;

(g) the control of draws, including provision in respect of

the persons who are to supervise the draws, the powers

and duties in relation to draws and the settlement of

disputes or difficulties arising in connection therewith;

(h) the procedure to be followed in the holding of draws;

(i) the forfeiture of bonds in favour of the Government;

(j) all matters required or authorised by this Act to be

prescribed and matters in respect of which the Act

provides that they are to be subject to, or are made

saving the provisions of, any regulations made under

this Act;

(k) all matters incidental to or connected with any matter

hereinbefore mentioned.

(1) No person who is appointed to discharge any duty in

connection with bonds shall disclose the name of the holder or the

amount which he may hold or any prize which he may have drawn

except for the purposes of this Act or unless required to do so under

any law for the time being in force.

(2) Any person who contravenes the provisions of this article

shall be liable on conviction to a fine (multa) not exceeding two

hundred and thirty-two euro and ninety-four cents (232.94).

No action against the Government, the Bank or any person

acting under their authority in connection with the payment of a

prize under this Act arising out of anything done or omitted to be

done by or on the directions of the Minister or the Bank under this

Act shall lie unless it is commenced not later than two years after

the date on which the prize was, or is claimed to have been, drawn.

(1) The Government, the Bank and any person acting

under their authority shall not be liable in respect of any payment

made or act done in accordance with the provisions of this Act or of

any regulations made thereunder unless it is shown, in respect of

any such person as aforesaid, that he acted in bad faith; and any

payment made as aforesaid shall, saving the provisions of this Act

concerning the rights of third parties, be deemed to be a valid

payment and the receipt by the person to whom the payment is

made shall constitute a full discharge of the Government and the

Bank for the amount so paid.

(2) Where a warrant for any payment in respect of a bond is

issued as payable to some person who is neither the holder nor a

person otherwise entitled by or under this Act to receive such

payment, then if it is shown that -

(a) the warrant was issued in good faith and without

PREMIUM BONDS

negligence, and

(b) the issue of the warrant to that person is attributable to

some act or omission on the part of the holder or of the

person otherwise entitled to receive payment,

the warrant shall, saving the provisions of this Act concerning the

rights of third parties, be deemed to have been duly issued to the

person entitled to receive payment.

Nothing contained in article 27 shall operate so as to

prevent the recovery by any person of any money lawfully due to

him from the person to whom that money was paid or from any

person claiming under such person or so as to affect the rights of

any person in respect of any bond against a third party.

All documents and instruments made or used under the

provisions of this Act or of any regulations made thereunder shall

be exempt from duty on documents.

Article 11 of the Public Lotto Ordinance * shall not apply to

the issue of bonds or to the holding of a draw under this Act.

*Repealed by Act XVI of 2018.