Cash Changeover Regulations, 2007

L.N. 441 of 2007

EURO ADOPTION ACT

(CAP. 485)

Cash Changeover Regulations, 2007

IN exercise of the powers conferred by article 3 of the Euro

Adoption Act, the Prime Minister and Minister of Finance has made

the following regulations>-

The title of these regulations is the Cash Changeover Title.

Regulations, 2007.

The objective of these regulations is to provide for measures Objective.

which ensure the smooth changeover of the currency unit from the

Maltese lira to the euro and to regulate the services of credit institutions

during the changeover period.

In these regulations, unless the context otherwise requires>-

Interpretation.

“accounts” are all types of accounts with credit institutions

and include deposit accounts, current accounts, mortgage accounts

and securities accounts<

“conversion rate” means the conversion rate adopted for the

Maltese lira as provided for in Article 1 of Council Regulation

(EC) No. 1134 of 2007 amending Regulation (EC) 2866 of 1998<

“credit institution””has the same meaning assigned to it by

article 2 of the Banking Act and includes any branch or agency in

Malta of a bank or credit institution not incorporated in Malta<

“dual circulation” means the period after the adoption of the

euro as the legal currency, during which Maltese lira notes and

coins circulate alongside euro notes and coins<

“euro” means the monetary unit of the European Union as

defined in Council Regulation (EC) 974#98 of the 3 May 1998 on

the introduction of the euro<

“euro adoption date” means the date defined in accordance

with Article 122(2) of the Treaty on the adoption by Malta of the

single currency on 1 January 2008<

“Euro Observatory” means the unit set up by the Euro

Adoption (Dual Display and Euro Pricing) Regulations, 2007 and

to the extent of any authority given, includes any officer or employee

of the Euro Observatory<

“legal instrument” includes any administrative act as defined

in article 469A of the Code of Organization and Civil Procedure

and any act of administration, any judicial decision, any payment

instrument other than a banknote and a coin, any unilateral legal

act and any other instrument with legal effect<

“monetary changeover” means the changeover of the national

currency from the Maltese lira to the euro.

(1) The dual circulation period shall commence on the 1st

January 2008 at 00>00hours and shall last until 24>00hours on 31st

January 2008.

(2) Maltese lira banknotes and coins shall also be used as

legal tender during the dual circulation period.

(1) During the dual circulation period, any person tendering

Maltese lira notes and coins in payment for goods or services shall be

given change only in euro banknotes and coins, unless it is materially

impossible to do so.

(2) The conversion shall be made by deducting the amount

in euro from the amount converted into euro received in Maltese lira

denominated banknotes and coins.

(1) The adoption of the euro as the national currency shall

not have the effect of altering any term of a legal instrument or of

discharging or excusing performance under any legal instrument, nor

shall it give a party the right unilaterally to alter or terminate such an

instrument>

Provided that the provisions of this sub-regulation shall be

without prejudice to an agreement to the contrary reached between the

parties to a legal instrument.

(2) Where in legal instruments existing at the end of the

dual circulation period reference is made to the Maltese lira, such

references shall be read and construed as a reference to the euro according

to the conversion rate.

(1) Credit institutions shall not charge any fees in respect Credit institutions.

of>

(a) the exchange of Maltese lira banknotes and coins for

euro banknotes and coins during the first three months following

the euro adoption date<

(b) the conversion of account balances from Maltese lira

into euro.

(2) On the 2nd January 2008, the business of credit

institutions may be restricted solely to cash deposits in both Maltese liri

and euro, cash exchanges from Maltese liri to euro and exchange of

foreign currency banknotes into euro banknotes and coins.

(3) On the 3rd January 2008, the business of credit

institutions may be restricted solely to cash deposits in both Maltese liri

and euro, encashment or deposit of social security cheques issued by

the Department of Social Security, cash exchanges from Maltese liri to

euro and exchange of foreign currency banknotes into euro banknotes

and coins.

(1) As from the euro adoption date, Maltese lira denominated Account balances.

account balances shall be converted into euro according to Articles 4

and 5 of Council Regulation (EC) No. 1103#97.

(2) Amounts referred to in sub-regulation (1) hereof shall

be rounded off pursuant to Article 5 of Regulation No. 1103#97.

The Euro Observatory shall be responsible for the monitoring Monitoring.

of these regulations.

(1) Any person who contravenes or fails to comply with Procedures for non-

compliance.

any provision of these regulations shall be guilty of an administrative

offence against these regulations and shall be liable to an administrative

penalty of seven hundred and fifty liri (Lm750) and an administrative

penalty of seventy five liri (Lm75) for each subsequent day during which

the said contravention persists.

(2) Where the Euro Observatory finds that any person is

not complying with any provision of these regulations, the procedures

for non-compliance outlined in the Euro Adoption (Dual Display and

Euro Pricing) Regulations, 2007shall apply.

L.N. 4 of 2007.

Mitbug[ fl-Istamperija tal-Gvern — Printed at the Government Printing Press

Lm0.16 (€0.37)