CREDIT INSTITUTIONS (REORGANISATION AND WINDING-UP) REGULATIONS

SUBSIDIARY LEGISLATION 371.12

CREDIT INSTITUTIONS (REORGANISATION AND

WINDING-UP) REGULATIONS

1st May, 2004

LEGAL NOTICE 228 of 2004, as amended by Legal Notices 298 of 2015

and 149 of 2016.

The title of these regulations is the Credit Institutions

(Reorganisation and Winding-up) Regulations.

(a) in Austria, undertakings recognised as housing associations in

the public interest and the ''Österreichische Kontrollbank AG'';

(b) in Belgium, the ''Institut de RÈescompte

et

de

Garantie⁄Herdisconteringen Waarborginstituut'';

(c) in Denmark, the ''Dansk Eksportfinansieringsfond'', the

''Danmarks Skibskreditfond'', and ''Dansk Landbrugs Realkreditfond'';

(d) in Finland, the ''Teollisen yhteistyön rahasto Oy/Fonden för

industriellt samarbete AB'', and the ''Kera Oy/Kera Ab'';

(e)

in France, the ''Caisse des dépôts et consignations'';

(f)

in Germany, the ''Kreditanstalt für Wiederaufbau'',

undertakings

which

are

recognised

under

the

''Wohnungsgemeinnützigkeitsgesetz'' as bodies of State housing policy

and are not mainly engaged in banking transactions, and undertakings

recognised under that law as non-profit housing undertakings;

(h)

in Ireland, credit unions and the friendly societies;

(i)

in Italy, the ''Cassa depositi e prestiti'';

(j)

in Portugal, ''Caixas Económicas'' existing on 1 January 1986

with the exception of those incorporated as limited companies and of

the ''Caixa Económica Montepio Geral'';

(k)

in Spain, the ''Instituto de Crèdito Oficial'';

(l)

in Sweden, the ''Svenska Skeppshypotekskassan''; and

(m) in the Netherlands, the ''Netherlandse Investeringsbank voor

NV '',

the

“ NV

Ontwikkelingslanden

Noordelijke

Ontwikkelingsmaatschappij'', the ''NV Industriebank Limburgs

Instituut voor Ontwikkeling en Financiering'' and the ''Overijsselse

Ontwikkelingsmaatschappij NV''.

(1) These regulations apply to Maltese credit institutions

and their branches located in other Member States or EEA States

and Part IV of these regulations applies to branches present in

Malta of credit institutions authorised in another Member State.

These regulations shall not apply to those branches of credit

institutions that are situated in a Member State or an EEA State in

which they have their head offices.

(2) In the event of application of the resolution tools and

exercise of the resolution powers provided for in the Act and any

relevant regulations made thereunder transposing the BRRD, these

regulations shall also apply to the financial institutions, firms and

parent undertakings falling within the scope of the BRRD in the

event of application of the resolution tools and exercise of the

resolution powers provided for in the said Directive.

(3) The provisions of these regulations do not apply to post

office giro institutions or to the Central Bank of Malta or to any

central bank of any other Member State or EEA State.

(4) The institutions listed in the Schedule shall not be

considered European credit institutions for the purposes of these

regulations, and the provisions of these regulations do not apply to

them.

(5) The provisions of these regulations relating specifically to

the branches of a credit institution not having a head office within a

Member State or an EEA State apply only where such institution

has branches in at least two States being either a Member State or

and EEA State.

(6) Where a credit institution is either under resolution or

where the conditions for resolution have been determined by the

Resolution Committee to be met, normal insolvency proceedings

shall not be commenced except at the initiative of the Resolution

Committee, and a decision placing a credit institution into normal

insolvency proceedings shall be taken only with the consent of the

Resolution Committee as provided for in regulation 86 of the

Recovery and Resolution Regulations made under the Malta

Financial Services Authority Act.

(7) These regulations shall only apply to reorganisation

measures or winding-up proceedings adopted immediately after the

date of coming into force of these regulations.

PRELIMINARY

(1)

In these regulations, unless the context otherwise

requires -

''the Act'' means the Banking Act;

"administrative or judicial authorities" means such

administrative or judicial authorities in Malta that are competent

for the purp oses of reorgani sation m easures or windi ng-up

proceedings;

''administrator'' means a special controller appointed under the

Companies Act; or a controller appointed under the Controlled

Companies (Procedure for Liquidation) Act; or a competent person

appointed under article 291(d) of the Act; or any other person or

body appointed by the competent authority or the foreign judicial

or administrative authority for the purpose of administering

reorganisation measures;

''branch'' means a place of business which forms a legally

dependent part of a credit institution and which carries out directly

all or some of the transactions inherent in the business of credit

institutions, as defined in point (17) of Article 4(1) of the CRR;

"the BRRD" means Directive 2014/59/EU of the European

Parliament and of the Council of 15 May 2014 establishing a

framework for the recovery and resolution of credit institutions and

investment firms and amending Council Directive 82/891/EEC, and

Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC,

2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and

Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the

European Parliament and of the Council, as amended from time to

time, and includes any implementing measures implementing

technical standards, regulatory technical standards, guidelines and

similar measures that have been or may be issued thereunder;

''competent authority'' means the Malta Financial Services

Authority established by the Malta Financial Services Authority

Act, or, as the case may be, the Resolution Committee established

by the Malta Financial Services Authority Act with respect to

reorganisation measures taken pursuant to the BRRD and to the

said Act;

''the Court'' means either the Civil Court in its contentious

jurisdiction in its role as the judicial authority competent for the

purposes of reorganisation measures or winding-up proceedings in

terms of Parts V and VI of the Companies Act or the Appeals Board

provided for by article 7 of the Controlled Companies (Procedure

for Liquidation) Act;

''creditor'' shall include a depositor as defined in the Depositor

Compensation Scheme Regulations;

''credit institution'' means an undertaking the business of which

is to take deposits or other repayable funds from the public and to

grant credits for its own account, as defined in point (1) of Article

4(1) of the CRR;

"the CRD" means Directive 2013/36/EU of the European

Parliament and of the Council of 26 June 2013 on the access to the

activity of credit institutions and the prudential supervision of

credit institutions and investment firms, amending Directive 2002/

87/EC and repealing Directives 2006/48/EC and 2006/49/EC, as

amended from time to time, and includes any implementing

measures that have been or may be issued thereunder;

''the CRR'' means Regulation (EU) No 575/2013 of the European

Parliament and of the Council of 26 June 2013 on prudential

requirements for credit institutions and investment firms and

amending Regulation (EU) No 648/2012, as amended from time to

time, and includes any implementing measures that have been or

may be issued thereunder;

''EEA State'' means a State which is a contracting party to the

agreement on the European Economic Area signed at Oporto on

2nd May, 1992 as amended by the Protocol signed at Brussels on

17th March, 1993 and as amended from time to time;

''European credit institution'' means a credit institution having its

head office in a Member State or an EEA State, other than Malta;

"financial institution" shall have the same meaning as that

assigned to it in point (26) of Article 4(1) of the CRR;

''foreign administrative or judicial authorities'' means the

administrative or judicial authorities competent for reorganisation

measures or winding-up proceedings in accordance with the

legislation or procedures of any Member State or EEA State other

than Malta;

''foreign authority'' means the body or bodies empowered to

supervise credit institutions by any Member State or EEA State

other than Malta;

''head office'' means the office that serves as the administrative

centre of a credit institution responsible for the activities of overall

management of the credit institution including its branches;

''home Member State'' shall mean the Member State or EEA State

in which the credit institution has been granted a licence, as defined

in point (43) of Article 4(1) of the CRR;

''host Member State'' shall mean the Member State or EEA State

other than the home State in which a credit institution has a branch

or in which it provides services, as defined in point (44) of Article

4(1) of the CRR;

''instrument'' means any instrument, contract or right falling

within the Second Schedule to the Investment Services Act and

whether or not issued in Malta;

''known creditors'' means creditors where the administrator or

liquidator is aware of, or should reasonably be aware of

(i) the creditor’s identity;

(ii) the creditor’s claim or potential claim, and

(iii) a recent address where the creditor is likely to

receive a communication;

''liquidator'' means -

(a) in Malta, an individual liquidator or liquidation

committee appointed under the provisions of the

Companies Act to administer the winding-up of a

Maltese credit institution or its branches and includes

the official receiver as defined in the Companies Act

when acting in the capacity of liquidator and the

controller as defined in the Controlled Companies

(Procedure for Liquidation) Act when acting in the

capacity of liquidator; and

(b) in another Member State or EEA State, any person or

body duly appointed in accordance with the legislation

and procedures of that State, for the purposes of

administering winding-up proceedings of a European

Credit institution or its branches;

''the Minister'' shall mean the Minister responsible for financial

regulation;

''Maltese credit institution'' means a credit institution whose

home State is Malta;

''Member State'' means a member of the European Union;

"normal insolvency proceedings" means collective insolvency

proceedings which entail the partial or total divestment of a debtor

and the appointment of a liquidator or an administrator normally

applicable to credit institutions under Maltese law and either

specific to those credit institutions or generally applicable to any

natural or legal person;

"parent undertaking" shall have the same meaning as that

assigned to it in point (15) of Article 4(1) of the CRR;

''the Registrar'' means th e person appointed to act as the

Registrar of Companies by the Minister responsible for the

registration of commercial partnerships pursuant to article 400 of

the Companies Act;

''regulated market'' shall have the same meaning as that assigned

to it in article 2(1) of the Financial Markets Act;

''reorganisation measures'' means measures which are intended to

preserve or restore the financial situation of a credit institution and

which could affect third parties’ pre-existing rights, including

measures involving the possibility of a suspension of payments,

suspension of enforcement measures or reduction of claims; those

measures include the application of the resolution tools and the

exercise of resolution powers provided for in the BRRD;

"Resolution Committee" means the committee appointed under

article 7B of the Malta Financial Services Authority Act;

''winding-up proceedings'' means collective proceedings opened

and monitored by the administrative or judicial authorities of Malta

with the aim of realising assets under the supervision of those

authorities, including where the proceedings are terminated by a

composition or other similar measure.

(2) Words and expressions which are also used in the Act have

the same meanings as in the Act.

PART I - REORGANISATION MEASURES

(1) The Court shall, upon receipt of an application made in

te r m s o f t h e C o m p a ni e s A c t , o r t h e C o n t r ol l e d C o m p a ni e s

(Procedure for Liquidation) Act, and the Act, decide on the

implementation of reorganisation measures with respect to a

Maltese credit institution including its branches established in host

States.

(2) Reorganisation measures adopted by the Court in respect of

a Maltese credit institution including its branches in any other host

St a t e s h a l l , u n l e s s e x p r e s s l y p r o v i d e d o t h e r w i s e i n t h e s e

regulations, be applied in term s of the Companies Act, the

Controlled Companies (Procedure for Liquidation) Act and the Act

as appropriate.

(3) Upon reorganisation measures taken pursuant to these

regulations becoming effective in Malta they shall be immediately

fully effective in any other Member State or EEA State without any

further formalities, including formalities as against third parties in

any Member State or EEA States, even if the legislation of such

host State applicable to such third parties, does not provide for such

reorganisation measures, or alternatively makes their

implementation subject to conditions which are not fulfilled.

(4) Nothing in these regulations shall prejudice the powers of

the competent authority in relation to reorganisation measures with

respect to a Maltese credit institution including its branches

established in host States, where provided for in article 29 of the

Act.

(1) The Court shall, upon receipt of an application for any

reorganisation measure, inform the competent authority regarding

this request in order to obtain its views on the adoption of such

measure and the practical effects which it may have. Provided that

where the reorganisation measure involves a company recovery

order in terms of the Companies Act, the provisions of article

329B(3)(d) of the Companies Act shall apply.

(2) Where the court makes a decision, order or appointment of

any of the following kinds -

(a) any compromise or arrangement in terms of article 327

of the Companies Act; or

(b) a company recovery order and appoints a special

controller in accordance with article 329B of the

Companies Act,

it must immediately inform the competent authority, or cause the

competent authority to be informed without delay, of the decision,

order or appointment which has been made.

(3) Where the competent authority is informed of a decision,

order or appointment in accordance with this regulation it shall, in

turn without delay and by any means available, inform the foreign

authority, if any, of the decision to adopt reorganisation measures

including the possible practical effects which such a measure may

have, before it is adopted or otherwise immediately thereafter

Provided that this sub-regulation shall not apply where

regulation 83 of the Recovery and Resolution Regulations applies,

and accordingly the foreign authority shall be informed by the

Resolution Committee in terms of such regulations.

(4) The duties provided for in this regulation are supplemental

to and without prejudice to the duties of the Registrar of Courts in

article 329B(13)(a) to (c) of the Companies Act.

(1) Where, upon receipt of an application, the Court deems

it necessary to implement one or more reorganisation measures on a

branch of a Maltese credit institution situated in another Member

State or an EEA State, the Court shall inform the competent

authority regarding this request in order to obtain its views on the

adoption of such measure and the practical effects which it may

have

Provided that where the reorganisation measure involves a

company recovery order in terms of the Companies Act, the

provisions of article 329B(3)(d) of the Companies Act shall apply.

(2) Where the Court makes a decision, order or appointment of

any of the following kinds -

(a) any compromise or arrangement in terms of article 327

of the Companies Act; or

(b) a company recovery order and appoints a special

controller in accordance with article 329B of the

Companies Act,

it must immediately inform the competent authority, or cause the

competent authority to be informed without delay, of the decision,

order or appointment which has been made.

(3) Where the competent authority is informed of a decision,

order or appointment in accordance with this regulation it shall, in

turn without delay and by any means available, inform the foreign

au th orit y of t he dec isio n to a dopt reorg anisation measure s

including the possible practical effects of such measures.

(4) The duties provided for in subregulations (1) and (2) are

supplemental to and without prejudice to the duties of the Registrar

of Courts in article 329B(13)(a) to (c) of the Companies Act.

(1) Where a decision on reorganisation measures adopted

by the Court is subject to a right of redress and its implementation

is likely to affect the rights of third parties, upon the Court’s taking

such decision, the administrator or any other person appointed by

t h e C o u r t i n r e l a t i o n t o s u c h m e a s u r e , s ha l l a t t h e e a r l i e s t

opportunity publish an extract from the Court’s decision in -

(a) the Malta Government Gazette;

(b) any two Maltese newspapers, provided that one extract

is published in the English language and the other is

published in the Maltese language;

(c) the Official Journal of the European Communities,

provided that third party rights in any host State are

capable of being affected by the reorganisation

measures; and

(d) two national newspapers in each host State, provided

that third party rights in the host State are capable of

being affected by the reorganisation measures.

(2) The publication made pursuant to subregulation (1) shall at

least specify -

(a) the purpose and legal basis of the Court’s decision

taken;

(b) the time limits for lodging requests for redress to the

Court;

(c) a clearly understandable indication of the date of

expiry of the time limit for lodging requests for redress

to the Court; and

(d) the details of Court and that it is competent to hear the

grievances of persons stipulated under the Companies

Act or any other applicable law.

(3) The information set out in subregulation (1) shall be

published in English or in both English and Maltese as well as,

where applicable, in an official language of the host State in which

the information is published.

(4) The reorganisation measures apply regardless of the

provisions concerning publication set out in subregulations (1) and

(2) and are fully effective against creditors, unless otherwise

provided by law or by the administrative or judicial authorities.

(5) The obligation of publication provided for in this regulation

is without prejudice to the duties of the special controller as

stipulated in article 329B(7)(c) of the Companies Act.

(1) Where the Companies Act provides that creditors are to

be informed of their rights to lodge a claim or to submit

observations at a creditors meeting the administrator shall without

delay inform in writing all known creditors, including creditors

who have their normal place of residence, domicile or head office

in another Member State or EEA State, about any Court decision,

order or appointment in terms of Articles 327 or 329B of the

Companies Act regarding the commencement of reorganisation

procedures as well as details regarding the information requested in

this regulation

Provided that this sub-regulation shall not apply where

regulation 83 of the Recovery and Resolution Regulations applies.

(2) The information given to creditors shall include at least the

following

(i)

that reorganisation measures have commenced in

relation to a Maltese credit institution;

(ii) the applicable time limits for the reorganisation

measures, if any;

(iii) the penalties laid down in regards to any time

limits, if any;

(iv) the body or authority empowered to accept

claims or observations in relation to the

measures; and

(v)

as to whether creditors whose claims are

preferential or secured in rem need lodge their

claims.

(3) In the case of company recovery proceedings the

information provided for above shall be supplemental to and

without prejudice to the duties of the special controller in 329B(7)

of the Companies Act. Where the special controller is obliged to

advise creditors as to the date and venue of any creditors’ meeting

to which they may be entitled to attend sufficient notice shall be

given in terms of article 329B(7)(b) of the Companies Act.

(4) The information set out in subregulation (2)(i) to (v) shall

be issued in English or in both English and Maltese.

(5) A form shall also be used bearing, in all the official

languages of the European Union, the heading ''Invitation to lodge

a claim. Time limits to be observed.''.

(6)

(a) Creditors who have their normal place of residence,

domicile or head office in another Member State or

EEA State shall have the same right to lodge claims or

submit observations in terms of Part VI of the

Companies Act as creditors with their normal place of

residence, domicile or head office in the home State in

accordance with the procedures laid down in regulation

(1) Meta l-Qorti tirċievi applikazzjoni biex tadotta

deċiżjoni dwar miżura ta’ organizzazzjoni mill-ġdid fir-rigward ta’

fergħa li tinsab f ’Malta ta’ istituzzjoni ta’ kreditu li għandha l-

uffiċċju prinċipali tagħha barra minn Stat Membru jew Stat taż-

ŻEE, hija għandha tavża lill-awtorità kompetenti dwar dik it-talba

sabiex tikseb l-opinjoni tagħha dwar l-adozzjoni ta’ dik il-miżura u

l-effetti prattiċi li din it-talba jista’ jkollha

Iżda, meta l-miżura ta’ organizzazzjoni mill-ġdid tinvolvi

ordni ta’ rkupru għal kumpannija skond l-Att dwar il-Kumpanniji,

għandhom japplikaw id-disposizzjonijiet ta’ l-artikolu 329B(3)(d)

ta’ l-Att dwar il-Kumpanniji.

(2) Meta l-Qorti tieħu deċiżjoni, tagħti ordni jew tordna l-ħatra

ta’ xi ħaġa minn dawn -

(a) xi transazzjoni jew arranġament skond l-artikolu 327

ta’ l-Att dwar il-Kumpanniji; jew

(b) ordni ta’ rkupru għal kumpannija tirkupra u ħatra ta’

kontrollur speċjali skond l-artikolu 329B ta’ l-Att dwar

il-Kumpanniji,

hija għandha tavża immedjatament lill-awtorità kompetenti, jew

għandha tieħu ħsieb li l-kumpannija kompetenti tkun avżata

mingħajr dewmien, bid-deċiżjoni, ordni jew ħatra li jkunu saru.

(3) Meta l-awtorità kompetenti tkun avżata b’deċiżjoni, ordni

jew ħatra skond dan ir-regolament, hija għandha, min-naħa tagħha,

malajr kemm jista’ jkun u b’kull mezz disponibbli, tikkomunika t-

tagħrif imsemmi hawn qabel lill-awtoritajiet barranin ta’ kull Stat

ospitanti ieħor li fih l-istituzzjoni ta’ kreditu tkun stabbiliet fergħat

li huma inklużi fil-lista msemmija fl-Artikolu 20 tal-CRD u

ppubblikata ta’ kull sena fil-Ġurnal Uffiċjali tal-Komunitajiet

Ewropej.

(4) L-awtoritajiet amministrattivi u ġudizzjarji msemmija f’dan

i r-reg olam ent g ħandho m jagħm lu mil l-aħj ar l i ji st għu biex

jikkordinaw l-azzjonijiet tagħhom.

(5) Id-dmirijiet

previsti

f’dan

ir-regolament

huma

s u p p l i m e n t a r i u m i n g ħ a j r p r e ġ u d i z z j u g ħ a d - d m i r i j i e t t a r-

Reġistratur tal-Qrati kif stabbiliti fl-artikolu 329B(13)(a) sa (ċ) ta’

l-Att dwar il-Kumpanniji.#

TAQSIMA II - PROĊEDURI TA’ STRALĊ

(1) Il-Qorti għandha, malli tirċievi applikazzjoni skond l-

Att dwar il-Kumpanniji jew l-Att dwar Kumpanniji Kontrollati

(Proċedura ta’ Stralċ) u l-Att, tiddeċiedi li tibda proċeduri ta’ stralċ

fir-rigward ta’ istituzzjoni ta’ kreditu Maltija, inklużi l-fergħat

tagħha stabbiliti f’xi Stat Membru jew f’xi Stat taż-ŻEE.

(2) Deċiżjoni tal-Qorti li tirrigwarda x-xoljiment u l-istralċ ta’

istituzzjoni ta’ kreditu Maltija, inklużi l-fergħat tagħha f’kull Stat

ospitanti, għandha tkun rikonoxxuta ġewwa t-territorju ta’ kull Stat

Membru ieħor jew ta’ Stat taż-ŻEE ieħor mingħajr aktar

formalitajiet u għandha tkun effettiva hemmhekk malli d-deċiżjoni

tal-Qorti tkun effettiva f’Malta.

(3)

(a) Il-Qorti għandha, malli tirċievi applikazzjoni għal xi

proċeduri ta’ stralċ, tavża lill-awtorità kompetenti

dwar din it-talba sabiex tikseb l-opinjoni tagħha dwar

l-adozzjoni ta’ dawn il-miżuri u l-effetti prattiċi li

dawn il-miżuri jista’ jkollhom.

(b) Meta il-Qorti tieħu deċiżjoni, tagħti ordni jew tordna l-

ħatra ta’ xi ħaġa minn dawn li ġejjin -

(i)

ordni ta’ stralċ skond l-artikolu 219 ta’ l-Att

dwar il-Kumpanniji; jew

(ii) il-ħatra ta’ amministratur proviżorju skond l-

artikolu 228 ta’ l-Att dwar il-Kumpanniji,

hija għandha tavża immedjatament lill-awtorità

kompetenti, jew tieħu ħsieb li l-awtorità kompetenti

tkun avżata mingħajr dewmien bid-deċiżjoni, ordni

jew ħatra li jkunu saru.

(4) Meta l-awtorità kompetenti tkun avżata b’deċiżjoni, ordni

jew ħatra skond dan ir-regolament, l-awtorità kompetenti għandha,

min-naħa tagħha, mingħajr dewmien u b’kull mezz disponibbli,

tavża lill-awtorità barranija fl-Istati Membri kollha jew fl-Istati taż-

ŻEE kollha li tkun saret deċiżjoni, ordni jew ħatra u l-effetti

possibbli li deċiżjoni ta’ dik il-kwalità jista’ jkollha.

(5) Fejn ikun sar ftehim skond l-artikolu 291 ta’ l-Att dwar il-

Kumpanniji, kull persuna li tkun nominata mill-istituzzjoni ta’

kreditu Maltija jew mill-kredituri, għandha tavża lill-awtorità

kompetenti bl-arranġament li kien approvat.

(6) Fejn jiġi nominat stralċjarju kif imsemmi fl-artikolu 230 ta’

l-Att dwar il-Kumpanniji, l-istralċjarju għandu javża lill-awtorità

kompetenti bil-ħatra tiegħu.

(7) Fil-każ ta’ stralċ volontarju tal-membri, l-istralċjarju kif

previst fl-artikolu 272 ta’ l-Att dwar il-Kumpanniji, għandu javża

lill-awtorità kompetenti jekk ikunx tal-fehma li l-istituzzjoni ta’

kreditu Maltija tkunx ser tkun kapaċi tħallas id-djun tagħha fiż-

żmien stipulat fid-dikjarazzjoni ta’ solvenza.

(8) Id-dmirijiet

previsti

f’dan

ir-regolament

huma

s u p p l i m e n t a r i u m i n g ħ a j r p r e ġ u d i z z j u g ħ a d - d m i r i j i e t t a r-

Reġistratur tal-Qrati kif stabbiliti fl-artikoli 224 u 264 ta’ l-Att

dwar il-Kumpanniji.

(9) Ma hemm xejn f’dawn ir-regolamenti li jista’ jippreġudika

d-dmirijiet u s-setgħat ta’ l-awtorità kompetenti fir-rigward tal-

proċeduri ta’ stralċ li jirrigwardaw istituzzjoni ta’ kreditu Maltija,

inklużi l-fergħat tagħha stabbiliti fi Stati ospitanti, fejn dawn id-

dmirijiet u s-setgħat ikunu previsti fl-Att jew fl-Att dwar

Kumpanniji Kontrollati (Proċedura ta’ Stralċ).

(1) Minbarra fil-każ ta’ l-eċċezzjonijiet previsti

espliċitament f’dawn ir-regolamenti, id-deċiżjoni tax-xoljiment u l-

istralċ ta’ istituzzjoni ta’ kreditu Maltija kif ukoll il-metodu ta’ kif

isir ix-xoljiment u l-istralċ tagħha, għandha tittieħed skond id-

d i s p o si z z j o n i j i e t ġ e n e r a l i t a t - Ta q s i m a V t a ’ l - A t t d w a r i l -

Kumpanniji u b’mod partikolari skond l-artikolu 29 ta’ l-Att u d-

disposizzjonijiet ta’ l-Att dwar Kumpanniji Kontrollati (Proċeduri

ta’ Stralċ).

(2) Fir-rigward ta’ istituzzjoni ta’ kreditu Maltija, il-liġi ta’

Malta għandha tkun il-liġi applikabbli u għandha tiddetermina

ukoll, b’mod partikolari

(a) il-beni li huma soġġetti għall-amministrazzjoni u l-

mod kif jiġu ttrattati l-beni li jkunu ġew miksuba mill-

istituzzjoni ta’ kreditu wara li jkunu nfetħu l-proċeduri

ta’ l-istralċ;

(b) is-setgħat rispettivi ta’ l-istituzzjoni ta’ kreditu Maltija

u l-istralċjarju;

(ċ) il-kondizzjonijiet li taħthom tista’ tiġi invokata

tpaċija;

(d) l-effetti tal-proċeduri ta’ stralċ fuq kuntratti kurrenti li

tagħhom l-istituzzjoni ta’ kreditu Maltija hija parti

kontraenti;

(e) l-effetti tal-proċeduri ta’ stralċ miġjuba minn kredituri

individwali, bl-eċċezzjoni ta’ kawżi pendenti, kif

previst f’dawn ir-regolamenti;

(f)

it-talbiet li għandhom jiġu depożitati kontra l-

istituzzjoni ta’ kreditu Maltija u t-trattament tat-talbiet

li jirriżultaw mill-ftuħ ta’ proċeduri ta’ stralċ;

(g) ir-regoli li jirregolaw

id-depożitu,

verifika

u

ammissjoni ta’ talbiet;

(h) ir-regoli li jirregolaw it-tqassim tad-dħul mill-bejgħ ta’

l-assi, klassifika tat-talbiet, drittijiet tal-kredituri li

ħadu sodisfazzjon parzjali wara l-ftuħ ta’ l-ordni ta’

stralċ permezz ta’ dritt in rem jew permezz ta’ tpaċija;

(i)

il-kondizzjonijiet għal, u l-effetti ta’, l-għeluq ta’

proċeduri ta’ stralċ, b’mod partikolari meta l-għeluq

isir permezz ta’ kompożizzjoni;

(j)

id-drittijiet tal-kredituri wara l-għeluq tal-proċeduri ta’

stralċ;

(k) min għandu jħallas l-ispejjeż tal-proċeduri ta’ stralċ; u

(l)

ir-regoli dwar l-ineżistenta, in-nullità jew in-nuqqas

ta’ inforzabbilità ta’ atti legali detrimentali għall-

kredituri kollha.

(1) Qabel ma tittieħed deċiżjoni dwar stralċ volontarju

mill-bord tad-diretturi jew korpi li jmexxu istituzzjoni ta’ kreditu,

dawn il-korpi għandhom jikkonsultaw ma’ l-awtorità kompetenti

bl-aktar mod adatt.

(2) Il-bidu ta’ l-istralċ volontarju ta’ istituzzjoni ta’ kreditu ma

għandux jipprekludi l-adozzjoni ta’ miżuri ta’ organizzazzjoni mill-

ġdid jew il-ftuħ ta’ proċeduri ta’ stralċ mill-Qorti.

(1) Meta l-Qorti tiddeċiedi illi tiftaħ proċeduri ta’ stralċ,

jew fin-nuqqas ta’ miżuri ta’ organizzazzjoni mill-ġdid jew skond

l-artikolu 329B(12) ta’ l-Att dwar il-Kumpanniji wara li ma jkunux

irnexxew il-miżuri ta’ organizzazzjoni mill-ġdid, l-awtorizzazzjoni

ta’ l-istituzzjoni ta’ kreditu għandha tkun irtirata mill-awtorità

kompetenti skond id-disposizzjonijiet ta’ l-artikolu 9 ta’ l-Att.

(2) F’każ ta’ l-irtirar ta’ awtorizzazzjoni, l-awtorità kompetenti

għandha, skond l-artikolu 9(7) ta’ l-Att, tavża l-awtorità barranija

ta’ l-Istat ospitanti sabiex din ta’ l-aħħar tkun tista’ tieħu l-miżuri

xierqa biex ma tħallix lill-istituzzjoni ta’ kreditu konċernata tibda

aktar operazzjonijiet ġewwa t-territorju tagħha u biex ikunu protetti

l-interessi tad-depożitanti.

(3) L-irtirar ta’ l-awtorizzazzjoni previst f’dan ir-regolament

ma għandux jimpedixxi lill-persuna jew lill-persuni afdati bl-istralċ

milli jwettqu wħud mill-attivitajiet ta’ l-istituzzjoni ta’ kreditu sal-

punt li jkunu meħtieġa jew xierqa għall-għanijiet ta’ l-istralċ

Iżda dawn l-attivitajiet għandhom jitwettqu taħt is-

sorveljanza ta’ l-awtorità kompetenti.

(1) L-istralċjarju jew kull persuna oħra maħtura għal dan

il-għan mill-Qorti għandhom, ma’ l-ewwel opportunità li jkollhom,

jagħmlu pubblika d-deċiżjoni tagħhom li jinfetħu l-proċeduri ta’

stralċ billi jippubblikaw estratt mid-deċiżjoni li tordna l-proċeduri

ta’ stralċ

(a) fil-Gazzetta tal-Gvern ta’ Malta;

(b) f’żewġ ġurnali Maltin, bil-kondizzjoni li estratt

minnhom ikun ippubblikat fil-lingwa Ingliża u l-ieħor

ikun ippubblikat fil-lingwa Maltija;

(ċ) fil-ġurnal Uffiċjali tal-Komunitajiet Ewropej, jekk id-

drittijiet ta’ terzi persuni f’xi Stat ospitanti jkunu

jistgħu jiġu milquta bil-proċeduri ta’ stralċ; u

(d) żewġ ġurnali nazzjonali f’kull Stat ospitanti, jekk id-

drittijiet ta’ terzi persuni fl-Istat ospitanti jkunu jistgħu

jiġu milquta bil-proċeduri ta’ stralċ.

(2) Il-pubblikazzjoni magħmula skond is-subregolament (1)(a)

sa (d), għandha, mill-anqas, tispeċifika

(a) li bdew proċeduri ta’ stralċ fir-rigward ta’ istituzzjoni

ta’ kreditu Maltija;

(b) il-limiti ta’ żmien applikabbli għall-proċeduri ta’ l-

istralċ, jekk ikun hemm;

(ċ) il-pieni stabbiliti fir-rigward ta’ kull limitu ta’ żmien,

jekk ikun hemm;

(d) l-indirizz sħiħ tal-korp jew awtorità li għandha s-

setgħa li tirċievi t-talbiet jew osservazzjonijiet dwar

talbiet u l-miżuri l-oħra msemmija; u

(e) jekk ikunx hemm bżonn li kredituri li t-talbiet

tagħhom huma preferenzjali jew assigurati b’garanzija

in rem, jiddepożitaw it-talbiet tagħhom.

(3) It-tagħrif imsemmi fis-subregolament (1) għandu jiġi

ppubblikat bl-Ingliż jew kemm bl-Ingliż kemm bil-Malti.

(4) Għandha wkoll tintuża formola li jkollha, bil-lingwi

uffiċjali kollha ta’ l-Unjoni Ewropea, l-intestatura ''Stedina biex

tiġi depożitata talba. Żmien li għandu jiġi osservat.''.

(5) Id-dmirijiet previsti f’dan ir-regolament huma mingħajr

preġudizzju għad-dmirijiet tar-Reġistratur tal-Qrati stipulati fl-

artikolu 401 ta’ l-Att dwar il-Kumpanniji u għad-dmirijiet tal-

kontrollur stabbiliti fl-artikolu 4 ta’ l-Att dwar Kumpanniji

Kontrollati (Proċedura ta’ Stralċ).

(1) Meta jkunu nbdew il-proċeduri ta’ stralċ, l-istralċjarju

għandu javża individwalment, mingħajr dewmien u bil-miktub lill-

kredituri kollha li jkunu magħrufa kull fejn ikunu residenti jew

domiċiljati

(a) illi nbdew proċeduri ta’ stralċ dwar istituzzjoni ta’

kreditu Maltija;

(b) dwar il-limiti ta’ żmien applikabbli għall-proċeduri ta’

stralċ, jekk ikun hemm;

(ċ) dwar il-pieni stabbiliti fir-rigward ta’ xi limiti taż-

żmien, jekk ikun hemm;

(d) dwar il-korp jew l-awtorità li għandhom is-setgħa li

jaċċettaw talbiet jew osservazzjonijiet dwar talbiet u l-

miżuri l-oħa msemmija; u

(e) jekk ikunx hemm bżonn li kredituri li l-talbiet

tagħhom huma preferenzjali jew assigurati b’garanzija

in rem, jiddepożitaw it-talbiet tagħhom.

(2) Meta, skond l-Att dwar il-Kumpanniji, l-istralċjarju għandu

javża lill-kredituri dwar, fost affarijiet oħra, id-data u l-post ta’ kull

laqgħa tal-kredituri li għaliha min jirċievi l-avviż ikollu d-dritt li

jattendi, dan l-avviż, imsemmi fis-subregolament (1), għandu

jingħata mingħajr preġudizzju għad-disposizzjonijiet ta’ l-artikolu

296 ta’ l-Att dwar il-Kumpanniji.

(3) It-tagħrif imsemmi fis-subregolament (1) għandu jinħareġ

bl-Ingliż jew bl-Ingliż u bil-Malti.

(4) Għandha wkoll tintuża formola, fil-lingwi kollha ta’ l-

Unjoni Ewropea, bl-intestatura ''Stedina biex tiġi depożitata talba.

Żmien li għandu jiġi osservat.''.

(5) Id-disposizzjonijiet ta’ dan ir-regolament huma mingħajr

preġudizzju għad-dmirijiet tal-kontrollur stabbiliti fl-artikolu 4 ta’

l-Att dwar Kumpanniji Kontrollati (Proċedura ta’ Stralċ).

(1) L-istralċjarju għandu jibgħat rapport bil-miktub darba

kull tnax-il xahar li jkun partikolarment fih il-posizzjoni tal-

progress ta’ l-istralċ, lil kull kreditur magħruf irrispettivament

minn fejn ikun residenti jew domiċiljat. Dan il-perjodu ta’ tnax-il

xahar jibda mid-data meta l-istralċjarju jkun ħa l-ħatra.

(2) Fejn ir-riċevitur uffiċjali jkun qed jaġixxi bħala stralċjarju,

l-ewwel rapport minn dawn ir-rapporti lill-kredituri għandu jkun

fih it-tagħrif meħtieġ skond l-artikolu 227 ta’ l-Att dwar il-

Kumpanniji.

(3) L-obbligu mitlub fis-subregolament (1) ma japplikax meta

stralċjarju jkun mitlub b’ordni mill-Qorti li jibgħat rapporti lill-

kredituri f ’intervalli li jkunu aktar frekwenti minn dawk mitluba

minn dan ir-regolament.

(4) Id-dmirijiet previsti f’dan ir-regolament huma mingħajr

preġudizzju għall-artikolu 234 ta’ l-Att dwar il-Kumpanniji u, meta

jkun japplika, huma supplimentari għad-dmirijiet tal-kontrollur taħt

l-Att dwar Kumpanniji Kontrollati (Proċedura ta’ Stralċ).

(1) Meta ikunu twettqu obbligi għall-vantaġġ ta’

istituzzjoni ta’ kreditu li ma tkunx persuna legali u li tkun is-

soġġett ta’ proċeduri ta’ stralċ mibdija fi Stat Membru ieħor jew

Stat taż-ŻEE ieħor meta kien imissha twettqet għall-vantaġġ ta’ l-

istralċjarju f’dawk il-proċeduri, il-persuna li tkun qed twettaq dak

l-obbligu għandha titqies li tkun wettqitu jekk ma kienetx taf bil-

ftuħ tal-proċeduri.

(2) Meta azzjoni bħal dik tkun twettqet qabel ma tkun saret il-

pubblikazzjoni mitluba mir-regolament 14, il-persuna li twettaq

dak l-obbligu għandha, fin-nuqqas ta’ provi li juru mod ieħor,

titqies li ma kienetx taf bil-ftuħ tal-proċeduri ta’ stralċ.

(3) Meta dan l-obbligu jitwettaq wara li tkun saret il-

pubblikazzjoni li hemm provdut dwarha fir-regolament 14, il-

persuna li twettaq dak l-obbligu għandha, fin-nuqqas ta’ provi li

juru mod ieħor, titqies li kienet taf bil-ftuħ tal-proċeduri.

(b) A creditor shall send copies of supporting documents,

if any, and shall indicate -

(i)

the nature of the claim;

(ii)

the date on which it arose;

(iii)

the amount of the claim;

(iv)

whether the creditor alleges any preference,

security in rem or reservation of title in respect

of the claim; and

(v)

the assets that are covered by the creditor’s

security.

9. (1) Where, upon receipt of an application to adopt a

decision on a reorganisation measure in relation to a branch present

in Malta of a credit institution having its head office outside a

Member State or EEA State, the Court shall inform the competent

authority regarding this request in order to obtain its views on the

adoption of such measure and the practical effects which it may

have

Provided that where the reorganisation measure involves a

company recovery order in terms of the Companies Act, the

provisions of article 329B(3)(d) of the Companies Act shall apply.

(2) Where the Court makes a decision, order or appointment of

any of the following kinds -

(a) any compromise or arrangement in terms of article 327

of the Companies Act; or

(b) a company recovery order and appoints a special

controller in accordance with article 329B of the

Companies Act;

it must immediately inform the competent authority, or cause the

competent authority to be informed without delay, of the decision,

order or appointment which has been made.

(3) Where the competent authority is informed of a decision,

order or appointment in accordance with this regulation, it shall, in

turn without delay and by any means available communicate the

information outlined above to the foreign authorities of any other

host State in which the credit institution has set up branches which

are included on the list referred to in Article 20 of the CRD and

published each year in the Official Journal of the European Union.

(4) The administrative or judicial authorities referred to in this

regulation shall endeavour to coordinate their actions.

(5) The duties provided for in this regulation are supplemental

to and without prejudice to the duties of the Registrar of Courts as

stipulated in article 329B(13)(a) to (c) of the Companies Act.

PART II - WINDING-UP PROCEEDINGS

10. (1) The Court shall, upon receipt of an application in

terms of the Companies Act or the Controlled Companies

(Procedure for Liquidation) Act and the Act, decide on opening of

winding-up proceedings in respect of a Maltese credit institution,

including its branches established in any Member State or EEA

State.

(2) The Court’s decision concerning the dissolution and

winding-up of a Maltese credit institution including its branches in

any host State shall be recognised within the territory of any other

Member State or EEA State without any further formalities and

shall be effective there as soon as the Court’s decision is effective

in Malta.

(3)

(a) The Court shall, upon receipt of an application for any

winding-up proceedings, inform the competent

authority regarding this request in order to obtain its

views on the ado ption of such m easures and t he

practical effects which they may have.

(b) Where the court makes a decision, order

or

appointment of any of the following kinds -

(i)

a winding-up order under article 219 of the

Companies Act; or

(ii) the appointment of a provisional administrator

under article 228 of the Companies Act,

it must immediately inform the competent authority, or

cause the competent authority to be informed without

delay of the decision, order or appointment which has

been made.

(4) Where the competent authority is informed of a decision,

order or appointment in accordance with this regulation, the

competent authority shall in turn, without delay and by any means

available inform the foreign authority in all Member States or EEA

States that the decision, order or appointment has been made and

the possible effects that of a decision, order or appointment of that

kind may have.

(5) Where an arrangement has been concluded pursuant to

article 291 of the Companies Act, any person appointed by the

Maltese credit institution or creditors shall inform the competent

authority of the arrangement which has been approved.

(6) Where a liquidator is appointed as mentioned in article 230

of the Companies Act the liquidator must inform the competent

authority of his appointment.

(7) In the case of a member’s voluntary winding-up, the

liquidator shall in article 272 of the Companies Act inform the

competent authority if he is of the opinion that the Maltese credit

institution will not be able to pay its debts within the period stated

in the declaration of solvency.

(8) The duties provided for in this regulation are supplemental

to and without prejudice to the duties of the Registrar of Courts in

articles 224 and 264 of the Companies Act.

(9) Nothing in these regulations shall prejudice the duties and

powers of the competent authority in relation to winding-up

proceedings with respect to a Maltese credit institution including

its branches established in host States, where provided for in the

Act or in the Controlled Companies (Procedure for Liquidation)

Act.

11. (1) Subject to the exceptions expressly provided for in

these regulations, the decision to dissolve and wind up a Maltese

credit institution as well as its method of winding-up and

dissolution, shall be made in accordance with the general

provisions of Part V of the Companies Act and in particular with

article 29 of the Act and the provisions of the Controlled

Companies (Procedures for Liquidation) Act.

(2) In relation to a Maltese credit institution, the law of Malta

shall be the applicable law and shall determine in particular

(a) the assets subject to administration and the treatment

of assets acquired by the credit institution after the

opening of winding-up proceedings;

(b) the respective powers of the Maltese credit institution

and the liquidator;

(c) the conditions under which set-off may be invoked;

(d) the effects of the winding-up proceedings on current

contracts to which the Maltese credit institution is

party;

(e) the effects of the winding-up proceedings brought by

individual creditors, with the exception of lawsuits

pending as provided for in these regulations;

(f)

the claims which are to be lodged against the Maltese

credit institution and the treatment of claims arising

after the opening of winding-up proceedings;

(g) the rules governing the lodging, verification and

admission of claims;

(h) the rules governing the distribution of proceeds from

the realisation of assets, the ranking of claims, the

rights of creditors who have obtained partial

satisfaction after the opening of the winding-up order

by virtue of a right in rem or through set-off;

(i)

the conditions for and the effects of the closure of

winding-up proceedings, in particular by composition;

(j)

the rights of creditors after the closure of the winding-

up proceedings;

(k) who is to bear the cost and expenses incurred in the

winding-up proceedings; and

(l)

the rules relating to the voidness, violability or

unenforceability of legal acts detrimental to all the

creditors.

12. (1) Before any voluntary winding-up decision is taken by

the board of directors or other governing bodies of a credit

institution these said governing bodies shall consult the competent

authority in the most appropriate form.

(2) The commencement of the voluntary winding-up of a credit

institution shall not preclude the adoption of reorganisation

measures or the opening of winding-up proceedings by the Court.

13. (1) Where the Court decides upon the opening of winding-

up proceedings either in the absence of reorganisation measures or

in terms of article 329B(12) of the Companies Act following the

failure of reorganisation measures, the authorisation of the credit

institution shall be withdrawn by the competent authority in terms

of the provisions of article 9 of the Act.

(2) In the event of the withdrawal of authorisation the

competent authority shall, in terms of article 9(7) of the Act inform

the foreign authority of the host State so as to enable it to take

appropriate measures to prevent the credit institution concerned

from initiating further transactions within its territory and to

safeguard the interests of depositors.

(3) The withdrawal of authorisation provided for in this

regulation shall not prevent the person or persons entrusted with

the winding-up from carrying on some of the credit institution’s

activities insofar as that is necessary or appropriate for the

purposes of winding-up

Provided that, such activities shall be carried under the

supervision of the competent authority.

14. (1) The liquidator or any other person appointed for this

purpose by the Court shall at the earliest opportunity make their

decision to open winding-up proceedings public by publishing an

extract from the decision ordering the winding-up proceedings in

CREDIT INSTITUTIONS (REORGANISATION AND WINDING UP)

(a) the Malta Government Gazette;

(b) any two Maltese newspapers, provided that one extract

is published in the English language and the other is

published in the Maltese language;

(c) the Official Journal of the European Communities,

provided that third party rights in any host State are

capable of being affected by the winding-up

proceedings; and

(d) two national newspapers in each host State, provided

that third party rights in the host State are capable of

being affected by the winding-up proceedings.

(2) The publication made pursuant to subregulation (1)(a) to

(d), shall at least specify

(a) that winding-up proceedings have commenced in

relation to a Maltese credit institution;

(b) the applicable time

limits

for

the

winding-up

proceedings, if any;

(c) the penalties laid down in regards to any time limits, if

any;

(d) the full address of the body or authority empowered to

accept claims or observations relating to claims and

the other measures laid down; and

(e) as to whether creditors whose claims are preferential

or secured in rem need lodge their claims.

(3) The information set out in subregulation (1) shall be

published in English or in both English and Maltese.

(4) A form shall also be used bearing, in all the official

languages of the European Union, the heading ''Invitation to lodge

a claim. Time limits to be observed.''.

(5) The duties provided for in this regulation are without

prejudice to the duties of the Registrar of Courts in article 401 of

the Companies Act and to the duties of the Controller in article 4 of

the Controlled Companies (Procedure for Liquidation) Act.

15. (1) When winding-up proceedings have commenced, the

liquidator shall without delay individually inform all known

creditors wheresoever resident or domiciled, in writing

(a) that winding-up proceedings have commenced in

relation to a Maltese credit institution;

(b) of the applicable time limits for the winding-up

proceedings, if any;

(c) of the penalties laid down in regards to any time limits,

if any;

(d) of the body or authority empowered to accept claims

or observations relating to claims and the other

measures laid down; and

(e) as to whether creditors whose claims are preferential

or secured in rem need lodge their claims.

(2) Where the liquidator shall in terms of the Companies Act

advise creditors as to inter alia the date and venue of any creditors

meeting to which the addressee may be entitled to attend such

notice in subregulation (1) shall be given without prejudice the

provisions of article 296 of the Companies Act.

(3) The information set out in subregulation (1) shall be issued

in English or in both English and Maltese.

(4) A form shall also be used bearing, in all the official

languages of the European Union, the heading ''Invitation to lodge

a claim. Time limits to be observed.''.

(5) The provisions of this regulation are without prejudice to

the duties of the Controller in article 4 of the Controlled Companies

(Procedure for Liquidation) Act.

16. (1) A liquidator shall send a written report setting out the

position in particular as regards the progress of the winding-up

once every twelve months, beginning from the date when the

liquidator ’s appointment has effect, to every known creditor

whosesoever resident or domiciled.

(2) Where the official receiver is acting as a liquidator the first

such report to creditors is to contain the information required in

terms of article 227 of the Companies Act.

(3) The requirement in subregulation (1) does not apply where

a liquidator is required by order of the Court to send reports to

creditors at intervals which are more frequent than those required

by this regulation.

(4) The duties provided for in this regulation are without

prejudice to article 234 of the Companies Act and where applicable

are supplemental to the duties of the Controller under the

Controlled Companies (Procedure for Liquidation) Act.

17. (1) Where an obligation has been honoured for the benefit

of a credit institution which is not a legal person and which is the

subject of winding-up proceedings opened in another Member State

or EEA State when it should have been honoured for the benefit of

the liquidator in those proceedings, the person honouring the

obligation shall be deemed to have discharged it if he was unaware

of the opening of proceedings.

(2) Where such an obligation is honoured before the

publication provided for in regulation 14 has been effected, the

person honouring the obligation shall be presumed, in the absence

of proof to the contrary, to have been unaware of the opening of

winding-up proceedings.

(3) Where the obligation is honoured after the publication

provided for in regulation 14 has been effected, the person

honouring the obligation shall be presumed, in the absence of proof

to the contrary, to have been aware of the opening of proceedings.

18. (1) Any creditor, including the public authorities of a

Member State or a EEA State, being domiciled in or having a

normal place of residence or head-office in a Member State or EEA

State other than Malta, shall have all the rights provided to

creditors in Part V of the Companies Act to lodge claims or to

submit written observations relating to claims in relation to a

Maltese credit institution being wound up.

(2) The claims of any creditor who is domiciled in or having a

normal place of residence or head offices in any Member State or

EEA States other than Malta, shall be treated in the same way as

any creditor resident or domiciled or having a head offices in Malta

and accorded the same ranking as claims of an equivalent nature

which may be lodged by creditors having their domiciles, normal

places of residence, or head offices in Malta.

(3) When lodging a claim a creditor shall send copies of

supporting documents, if any, and shall indicate

(a) the nature of the claim;

(b) the date on which it arose and its amount;

(c) whether the creditor alleges preference;

(d) security in rem or reservation of title in respect of the

claim; and

(e) what assets are covered by the creditor’s security.

(4) Any creditor who is domiciled or having a normal place of

residence or head office in a Member State or EEA State other than

Malta, may lodge claims or submit observations relating to such

claim in the official language or one of the official languages of

that other Member State or EEA State. In that event, the lodgement

of the creditor’s claim or the submission of observations on such

claim shall bear the heading ''Lodgement of claim'' or ''Submission

of observations relating to claims'' in English or Maltese. In

addition, the creditor may be required to provide a translation into

English or Maltese of the lodgement of claim or submission of

observations relating to claims or of any of the documentation and,

or information required in subregulation (3).

(5) The provisions of this regulation are without prejudice to

the provisions of article 232 of the Companies Act.

(1) Where, upon receipt of an application to adopt a

decision or order to commence winding-up procedures of a branch

present in Malta of a credit institution having its head office

situated outside a Member State or EEA State, the Court shall

inform the competent authority regarding this request in order to

obtain its views on the adoption of such measure and the practical

effects which it may have.

(2) Where the Court makes a decision, order or appointment of

any of the following kinds -

(a) a winding-up order under article 219 of the Companies

Act; or

(b) the appointment of a provisional administrator under

article 228 of the Companies Act;,it must immediately

inform the competent authority, or cause

the competent authority to be informed without delay of the

decision, order or appointment which has been made.

(3) Where the competent authority is informed of a decision,

order or appointment in accordance with this regulation, the

competent authority shall in turn, without delay and by any means

available communicate such information to the foreign authorities

of any other host State in which the credit institution has set up

branches which are included on the list referred to in Article 20 of

the CRD and published each year in the Official Journal of the

European Union, and shall inform the foreign authority of the

decision to open winding-up procedures and the practical effects of

such. The competent authority shall also advise the foreign

authority of any other host States that the authorisation of the

branch has been withdrawn.

PART III – PROVISIONS COMMON TO REORGANISATION

AND WINDING-UP PROCEEDINGS

The effects of a reorganisation measure or winding-up

proceedings of a credit institution on employment contracts and

employment relationships are determined in accordance with the

laws of the Member State or EEA State to which that contract or

relationship is subject.

The effects of a reorganisation measure or winding-up

proceedings of a credit institution on a contract conferring the right

to make use of or acquire immovable property situated within the

territory of a Member State or EEA State are to be governed in

accordance with the law of that Member State or EEA State.

Rights of a credit institution in respect of immovable

property, a ship or an aircraft subject to registration in a public

register shall be governed solely by the law of the Member State or

EEA State under the authority of which the register is kept.

(1) The adoption of reorganisation measures or the

opening of winding-up proceedings of a Maltese credit institution

shall not affect the rights in rem of creditors or third parties in

respect of tangible or intangible, movable or immovable assets

including both specific assets and collections of indefinite assets as

a whole which change from time to time belonging to the credit

institution concerned which are situated within the territory of a

Member State or EEA State at the time of the opening of such

measures or proceedings.

(2) The rights in rem referred to in subregulation (1) shall in

particular mean -

(a) the right to transfer assets or have them transferred and

to obtain satisfaction from the proceeds of or the

income from those assets, in particular by virtue of a

lien, mortgage or hypothec;

(b) the exclusive right to have a claim met, in particular a

right guaranteed by a lien in respect of the claim or by

assignment of the claim by way of a guarantee;

(c) the right to demand the assets from, and, or to require

restitution, by anyone having possession or use of

them contrary to the wishes of the party so entitled;

(d) a right in rem to the beneficial use of assets.

(3) A right, recorded in a public register and enforceable

against third parties, under which a right in rem within the meaning

of subregulation (1) may be obtained, is also to be treated as a right

in rem for the purposes of this regulation.

(4) Subregulation (1) does not preclude actions for voidness,

voidability or unenforceability of legal acts detrimental to creditors

referred to in regulation 11(2)(l).

(1) The commencement of reorganisation measures or

winding-up proceedings in relation to a Maltese credit institution

purchasing an asset shall not affect the seller’s rights based on a

reservation of title where at the time of the commencement of such

measures or proceedings the asset is situated within the territory of

another Member State or EEA State.

(2) The commencement of reorganisation or winding-up

proceedings against a Maltese credit institution selling an asset,

after delivery of the asset, shall not constitute grounds for

rescinding or terminating the sale and shall not prevent the

purchaser from acquiring title where at the time of the opening of

such measure or proceedings the asset sold is situated within the

territory of a Member State or EEA State in which such measures

or proceedings were commenced.

(3) Subregulations (1) and (2) do not preclude actions for

voidness, voidability or unenforceability of legal acts detrimental

to creditors referred to in regulation 11(2)(l).

(1) The adoption of reorganisation measures or the

opening of winding-up proceedings shall not affect the rights of

creditors to demand the set-off of their claims against the claims of

the Maltese credit institution where such a set-off is permitted by

the law of the Member State or EEA State which is applicable to

the claim of the Maltese credit institution.

(2) This regulation does not preclude actions for voidness,

voidability or unenforceability of legal acts detrimental to creditors

referred to in regulation 11(2)(l), above.

The enforcement of proprietary rights in instruments or

other rights in such instruments the existence or transfer of which

p r e s u p p o s e s t h e i r r e c o r d i n g i n a r e g i s t e r, a n a c c o u n t o r a

centralised deposit system held or located in a Member State or

EEA State shall be governed by the law of the Member State or

EEA State where the register, account, or centralised deposit

system in which those rights are recorded is held or located.

Pursuant to the provisions of the Set-Off and Netting on

Insolvency Act, and without prejudice to regulations 68 and 71 of

the Recovery and Resolution Regulations, netting agreements shall

be governed solely by the law of the contract which governs such

agreements.

Without prejudice to regulations 68 and 71 of the Recovery

and Resolution Regulations, and to regulation 26 of these

regulations, repurchase agreements shall be governed solely by the

law of the contract which governs such agreements.

Without prejudice to regulation 26, transactions carried out

in the context of a regulated market are to be governed solely in

accordance with the law of the contract which governs such

transactions.

(1) The administrator or liquidator’s appointment shall be

evidenced by a certified copy of the original decision appointing

him or her or by any other certificate issued by the administrative

or judicial authority of the home State attesting t o the due

appointment of the administrator or liquidator.

(2) A translation into the official language or one of the official

languages of the Member State or EEA State within the territory of

which the administrator or liquidator wishes to act may be required.

No legislation or other similar formality shall be required.

(3) Administrators and liquidators shall be entitled to exercise

within the territory of any Member State or EEA State all the

powers which they are entitled to exercise within the territory of

the home State. They may also appoint persons to assist or, where

appropriate, represent them in the course of the reorganisation

measure or winding-up proceedings, in particular in host States

and, specifically in order to help overcome any difficulties

encountered by creditors in the host State.

(4) In exercising their powers, administrators and liquidators

shall comply with the law of the Member State or EEA State within

the territory of which they wish to take action, in particular with

regard to procedures for the realisation of assets and the provision

of information to employees. Those powers may not include the use

of force or the right to rule on legal proceedings or disputes.

(1) Regulation 11 shall not apply as regards the rules

relating to the voidness, voidability or unenforceability of legal

acts detrimental to the creditors as a whole, where the beneficiary

of these acts provides proof that

(a) the act detrimental to the creditors as a whole is

subject to the law of a Member State or EEA State

other than the home State, and

(b) that law does not allow any means of challenging that

act in the case in point.

(2) Where a reorganisation measure decided on by a judicial

authority provides for rules relating to the voidness, voidability or

unenforceability of legal acts detrimental to the creditors as a

whole performed before adoption of the measure, regulation 4(2)

shall not apply in the cases provided for in this regulation.

Where, by an act concluded after the adoption of a

reorganisation measure or the opening of winding-up proceedings,

a credit institution disposes, for consideration of -

(a) an immovable asset situated within the territory of a

Member State or EEA State;

(b) a ship or an aircraft subject to registration in a public

register kept under the authority of a Member State or

EEA State; or

(c) instruments or rights in such instruments the existence

or transfer of which presupposes their being recorded

in a register, an account or a centralised deposit system

held or located in a Member State or EEA State,

the validity of that act shall be governed by the law of the Member

State or EEA State within whose territory the immovable asset is

situated or under whose authority the register, account or system is

kept, as the case may be.

The effects of reorganisation measures or winding-up

proceedings on a pending lawsuit concerning an asset or a right of

which the Maltese credit institution has been divested shall be

governed solely in accordance with the law of the Member State or

EEA State in which the lawsuit is pending.

(1) In order to secure the rights of interested third parties,

an administrator or liquidator may request that a reorganisation

measure or the decision to open winding-up proceedings be

registered in the registry of companies and any other public register

by whatever name kept in Malta or any other Member State or EEA

State.

(2) The costs of registration are to be regarded as costs and

expenses incurred in the winding-up proceedings or reorganisation

measure.

All persons required to receive or divulge information in

connection with the information or consultation procedures laid

down in these regulations shall be bound by professional secrecy,

in accordance with the rules and conditions laid down in the

Banking Act, the Malta Financial Services Authority Act and the

Banking Act (Supervisory Review) Regulations, with the exception

of any judicial authorities to which existing national provisions

apply

Provided that this regulation shall not apply where

regulation 84 of the Recovery and Resolution Regulations applies,

and accordingly the confidentiality provisions of such regulations

shall apply.

PART IV - REORGANISATION MEASURES AND WINDING-UP

PROCEEDINGS IN RESPECT OF EUROPEAN CREDIT

INSTITUTIONS EFFECTIVE IN MALTA

(1) The commencement of a reorganisation measure or

winding-up proceedings of a European credit institution has effect

in Malta as if it were part of the Companies Act, when such is in

relation to

(a) a branch of a European credit institution;

(b) any property or other assets of the European credit

institution; or

(c) any debt or liability of such European credit

institution.

(2) Subject to subregulation (4), the administrator or liquidator

or persons appointed to assist, or where appropriate, represent the

administrators and liquidators may exercise in Malta, in relation to

a European credit institution which is subject to a reorganisation

measure or winding-up proceedings, any function which, pursuant

to that measure or order, he is entitled to exercise in relation to a

European credit institution.

(3) The appointment of the administrator and liquidator shall

be evidenced -

(a) by a certified copy of the order or decision by a

judicial or administrative authority competent in the

home State for reorganisation or winding-up

proceedings by or under which the administrator or

liquidator was appointed; or

(b) by any other certificate issued by the judicial or

administrative authority which has jurisdiction in

relation to a reorganisation measure or winding-up

proceedings,

and, where necessary accompanied by a certified translation of that

order, decision or certificate, as the case may be.

(4) In exercising the functions of the kind mentioned in

subregulation (2), the administrator or the liquidator -

(a) may not take any action which would constitute an

unlawful use of force in Malta;

(b) may not rule on any dispute arising from a matter

falling within Parts I, II and III of these regulations;

and

(c) notwithstanding the way in which functions may be

exercised in the home State of the European credit

institution, shall act in accordance with the laws or

rules as to procedure which are effective in Malta.

(1) From the date of coming into force of these

regulations * , the Court may not, in relation to a European credit

institution or any branch of a European credit institution -

(a) make a winding-up order pursuant to article 224 of the

Companies Act; or

(b) adopt reorganisation measures or perform any act

ancillary to the adoption of such measures in terms of

Part VI of the Companies Act.

(2)

Sub-regulation (1)(a) does not prevent -

(a) the Court from making a winding-up order after the

coming into force of these regulations in relation to a

European credit institution or any branch of a

European credit institution if -

(i)

a provisional administrator was appointed in

relation to the European credit institution or any

branch of a European credit institution before

the coming into force of these regulations; and

(ii) the appointment continues in force until

immediately before that winding-up order is

made;

(b) the winding-up of a European credit institution or any

branch of a European credit institution after the

coming into force of these regulations pursuant to a

winding-up order which was made, and has not been

discharged, before that date.

(3) Sub-regulation (1)(b) does not prevent a provisional

administrator of a European credit institution appointed before the

coming into force of these regulations, from acting in relation to

such institution after that date.

PART V - INTERPRETATION

(1) The purpose of these regulations is to implement the

provisions of Directive 2001⁄24⁄EC of the European Parliament and

of the Council of 4th April, 2001 on the reorganisation and

winding-up of credit institutions, and shall be interpreted and

applied accordingly.

(2) In the event that there is a conflict between any of these

regulations and the provisions of the Directive mentioned in

subregulation (1), the provisions of the Directive shall prevail.

*refers to the coming into force of Legal Notice 149 of 2016 - 6th May, 2016.