MALTA GOVERNMENT RETAIL SAVINGS BONDS REGULATIONS

SUBSIDIARY LEGISLATION 575.01

MALTA GOVERNMENT RETAIL SAVINGS BONDS

REGULATIONS

1st September, 2017

LEGAL NOTICE 215 of 2017.

The title of these regulations is the Malta Government

Retail Savings Bonds Regulations.

In these regulations, unless the context otherwise

requires

"Accountant General" means the Accountant General of the

Government of Malta who heads the Treasury Department;

"the Act" means the Government Borrowing and Management

of Public Debt Act;

"business day" means a day other than a Saturday, a national or

public holiday listed in articles 2 and 5(1) of the National Holidays

and other Public Holidays Act, a bank holiday as declared under

article 3(2)(b) of the Banking Act or a day when the Trans-European

Automated Real-time Gross settlement Express Transfer system

(TARGET), owned and operated by the Eurosystem, is closed for

business as may be published on European Central Bank’s website

(www.ecb.europa.eu);

"claims", in respect of Malta Government Retail Savings

Bonds, include both the principal repayment and the interest due, if

any, on the said Malta Government Retail Savings Bonds;

"eligible investor" means an individual who, in accordance

with the published terms and conditions, is eligible to buy and hold

the Malta Government Retail Savings Bonds;

"Government" means the Government of Malta;

"holder" means any individual or individuals in whose name or

names the Malta Government Retail Savings Bonds are entered in the

register;

"individual" means a natural person;

"Malta Government Retail Savings Bonds", hereinafter

referred to as "Retail Savings Bonds", means a debt instrument as

defined in the Act issued for the purpose of raising money under the

provisions of these regulations;

"Minister" means the Minister responsible for finance;

"person" means a natural or legal person;

"prospectus" means the offering document issued by the

Accountant General to announce the issuance of the Retail Savings

Bonds and to specify amongst others the amount to be issued, the

coupon interest payable, the date or dates when the interest shall be

payable, the date of redemption and the governing law;

"publication" means the dissemination of information by the

Accountant General using any medium available, including, but not

limited to, the Treasury Department website and the Gazette;

"the Register", in relation to the Retail Savings Bonds, means

the Treasury Department’s Register of holders of Malta Government

Retail Savings Bonds;

"Registrar" means the Treasury Department or the Treasury

Department’s designated Registrar;

"term", in relation to Retail Savings Bonds, means a specified

period for which a rate of interest has been fixed for that Retail

Savings Bonds.

The purpose of these regulations is to make provision

for the issue, promotion and management of the Retail Savings

Bonds in Malta.

(1)

The Accountant General shall publish a

prospectus for each Retail Savings Bond issue as authorised by the

Minister prior to the Retail Savings Bond being offered for

subscription to eligible investors.

(2) The prospectus governing the issue of the Retail Savings

Bonds shall specify amongst others the following

(a)

the title and type of the Retail Savings Bond,

the annual rate of interest (coupon) payable on the bonds and

the denomination of the Retail Savings Bond;

(b)

the eligibility of the individuals entitled to

purchase and hold the Retail Savings Bonds;

(c)

the minimum and maximum holding of Retail

Savings Bonds by any holder;

(d)

the date or the dates when the interest on the

Retail Savings Bonds shall be paid;

(e)

the date of maturity of the Retail Savings

Bonds and the rate at which it will be repaid;

(f)

the mode of how the repayment of principal

and interest shall be made;

(g)

the conditions related to the early redemptions

of the Retail Savings Bonds requested by holders; and

(h)

any other terms and conditions specifically

applicable to the Retail Savings Bonds on issue.

(3) An application to purchase Retail Savings Bonds must

be made in the approved form, and the applicant must provide the

Accountant General with any documents or other information

required.

(4)

It shall be lawful for the Accountant General to issue,

promote and administer the Retail Savings Bonds on behalf of the

Government.

(5) The Accountant General may issue the Retail Savings

Bonds either directly or through the appointment of one or more

licensed financial institutions and licensed investment services

providers, as considered appropriate, to sell the Retail Savings Bonds

on behalf of the Government. The Accountant General may enter into

any contract or agreement relating to such terms and conditions that

he may consider appropriate.

(6) The Retail Savings Bonds shall be registered and

maintained only in electronic format by the appropriate entry in the

register of the Treasury Department, or its designated Registrar, by

entering therein the name and address of the holder, the amount held,

coupon interest rate payable, and such other particulars as may, from

time to time, be considered necessary by the Accountant General.

(7) For the purposes of sub-regulation (6), the Register of

Retail Savings Bonds shall be maintained by the Central Securities

Depository (CSD) of the Malta Stock Exchange. The Minister may

however designate any other recognised domestic electronic central

securities depository to provide the services and functions of a

registrar in terms of sub-regulation (6).

(8) Retail Savings Bonds shall not be transferable from the

name of the holder onto the name of another person at any time.

(1)

The Retail Savings Bonds can be, purchased

and held by an eligible investor

(a)

in his own name only; or

(b)

jointly with another eligible investor,

as the Accountant General decides and specifies in the terms and

conditions governing the issuance of the Retail Savings Bonds.

(2) In the case that Retail Savings Bonds are purchased

jointly between two individuals, all correspondence will be sent to

the individual named first on the application form.

(3) Except in the case provided for in sub-regulation (4),

Retail Savings Bonds must be held directly in the name of the eligible

investor and may not be held by a person on behalf of any other

eligible investor.

(4) Retail Savings Bonds may be purchased on behalf of and

held in the name of an eligible investor who lacks the capacity or is

interdicted by the Court in accordance to the provisions of Title IV of

the Code of Organization and Civil Procedure by the eligible

investor’s curator appointed by the Court. In the case where Retail

Savings Bonds are purchased in this way, the bonds shall be deemed

to be purchased by the eligible investor.

The Accountant General may refuse to accept an

application form for Retail Savings Bonds if

(a)

the application form is not completed in full; or

(b)

the application is not signed by the eligible

investor or his curator or a person acting under a valid power

of attorney to purchase and sign on behalf of an eligible

investor; or

(c)

the requested supporting documentation is not

submitted in time.

The Accountant General has the power, on behalf of and

on account of the Government, to accept or reject applications for

Retail Savings Bonds on any ground whatsoever.

(1)

An eligible investor will not be able to

subscribe for Retail Savings Bonds if the total nominal value amount

applied for exceeds or falls below the thresholds published in the

terms and conditions governing the issuance of the Retail Savings

Bonds.

(2) Where, for any reason, an eligible investor in aggregate

subscribes for a higher amount or for a lower amount than that

established in the prospectus, the Accountant General may cancel the

application or applications submitted by the eligible investor.

(1)

All payments including payment of interest and

principal repayment related to Retail Savings Bonds shall be made

(a)

in Euro currency; and

(b)

by electronic transfer through the SEPA (Single

Euro Payments Area) payment scheme at the holder’s latest

International Bank Account Number (IBAN) shown on the

register.

(2) If the interest payment date falls on a day other than a

business day, or a day when the Trans-European Automated Real-

time Gross Settlement Express Transfer system (TARGET), owned

and operated by the Eurosystem, is closed for business as may be

published on European Central Bank’s website (www.ecb.europa.eu)

the interest payment will be made on the immediately following

business day without payment of additional interest.

(1)

The interest on the Retail Savings Bonds shall

be paid in arrears in accordance with the terms and conditions

specified in the prospectus.

(2) Where the holder withdraws the funds before maturity in

terms of regulation 11(2), the holder shall be entitled to the interest

from the last interest payment date up to the date preceding the date

of the principal repayment (both days inclusive).

(1)

Unless previously subject to early redemption

as specified in accordance to sub-regulation (2), the Retail Savings

Bond shall be redeemed on its maturity date as specified in the

prospectus.

(2) The Accountant General may give the option to the

holder to withdraw the full amount of principal invested before

maturity. The early redemption shall be subject to the terms and

conditions listed in the prospectus.

(3) Amounts withdrawn in accordance to sub-regulation (2)

shall be cancelled and the amount cancelled shall deducted from the

outstanding amount of the Retail Savings Bonds.

(1)

Transactions related to the transfer causa

mortis of Retail Savings Bonds onto the beneficiaries of the deceased

holder shall be processed by the Accountant General or any person

appointed by him to deal with the processing and vetting of

documentation leading to the release, transfer or repayment of Retail

Saving Bonds.

(2) The Accountant General or the person appointed by him

to deal with the transfer causa mortis claims shall process the release,

transfer or the repayment of the Retail Savings Bonds in accordance

with holder’s testamentary disposition and on the instructions

submitted by the notary or lawyer having the lawful authority to act

on behalf of the heirs.

(3) The request for the disposition of Retail Savings Bonds

to the beneficiaries legally entitled to receive the benefit of the Retail

Savings Bonds shall be made in conformity with the terms and

conditions of the prospectus.

(1)

The Accountant General and any person acting

under his authority shall not be liable in respect of any payment duly

made or act duly in accordance with the provisions of these

regulations and any such payment shall, subject to the provisions of

these regulations concerning the rights of third parties, be deemed to

have been a valid payment, and the receipt by the person to whom the

money was paid shall be a full discharge to the Accountant General

for the such payment.

(2) Where any payment in respect of Retail Savings Bonds

is issued to an individual who is neither the holder nor a person

otherwise entitled by or under these regulations to receive such

payment, then if it is shown that -

(a)

the payment was issued in good faith and

without negligence, and

(b)

the issue of the payment to that individual or

person is attributable to some act or omission on the part of the

holder or of the individual or person otherwise entitled to

receive payment,

the payment shall, saving the provisions of these regulations

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

issued to the holder or to the individual entitled to receive payment.

(3) The Accountant General shall not be liable for any delay

in the completion of any payment if the delay is outside the direct

control of the Treasury Department.

Nothing contained in regulation 13(1) and (2) for the

protection of the Accountant General shall operate to prevent the

recovery by any holder or his representative or his beneficiaries of

any money lawfully due to the holder from the person to whom that

money was paid by the Accountant General or under his direction or

affect the rights of any holder or his representative or his

beneficiaries may have in respect of Retail Savings Bonds against a

third party.

(1)

Holders shall not be entitled to claim interest

on any Retail Savings Bonds issued under these regulations in respect

of any period which has elapsed after the earliest date on which the

demand could lawfully have been made for the payment of the

principal amount due.

(2) Where an amount has become payable on the Retail

Savings Bonds as interest due, no interest on that amount shall, after

that date, be paid or payable by the Government to any holder in any

circumstances.

Claims in respect of Retail Savings Bonds issued under

these regulations shall become prescribed unless presented for

payment within six years from the maturity date of the Retail Savings

Bonds.

The Accountant General may require satisfactory

evidence of the following

(a)

identity of the applicant;

(b)

address of the applicant; and

(c)

any other information required by the

Accountant General to confirm the eligibility of the individual

to invest in the Retail Savings Bonds.

The posting of letters and documentation issued to the

holder of the Retail Savings Bonds at the last address registered in the

Register shall, as regards to the liability of the Accountant General,

be equivalent to the delivery of the letter or documentation to that

holder.