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Investment of Certain Moneys Ordinance (Cap. 26) Consolidated

CHAPTER 26

INVESTMENT OF CERTAIN MONEYS ORDINANCE

To provide for a safe and profitable investment of moneys belonging to certain persons.*

(28th February, 1895)†

Enacted by ORDINANCE VI of 1895 as amended by Act VI of 1959; Legal Notice 4 of 1963, Act XIII of 1983 and Legal Notice 407 of 2007.

1. This Ordinance may be cited as the In vestment of Certain

Moneys Ordinan ce.
2. (1) In the case of expropriation for a pub lic purpose of any property subject to entail or in the case of licitation o f any property sub ject to en tail as provided in article 523 of the Civil Code, it shall b e lawfu l fo r the com petent cou rt to o rde r th at th e co mp en sati o n p a y a b l e i n r e s p ect o f th e p r o p er ty ex p r o p r i ate d , w h er e s u ch co m pe n sation is not less tha n one hundre d and sixtee n euros and forty-s e ve n c e nts (1 16. 47), o r t h e s h a r e s o f t h e p r o c e e d s a pperta ining to the c o -owne rs of th e property so ld by lic it a tion, w h at e v e r th e a m o u n t th ereo f , b e i n v e s t e d in t h e p u rch as e o f a per p etual an nuity to b e , u pon s u ch or der, cons titu ted by the Gove rnmen t o f M alta, at the rate of two an d o ne-half per cen tum , according to the provisio ns of this Ordinance, provided the court is satisfied of the expediency of such investment in the interest of the parties concerned.
(2) The court may, either in the order for the purchase of the ann uity o r sub seq uently, up on th e demand of an y party in terested, gi ve th e re quis i te d i re c t io ns re s p e c t i ng th e a l ie na bil i t y o f t h e annuity.
(3) The cou rt may also o rder that th e capital of th e annuity s h all r e m a in s u b j ect to the s a m e en tail as a su rro g a t u m fo r t h e property ex propriated or sold by licitation.
(4) Where the annuity is declared to be inalienable or subject to entail, such fact shall be expressly stated in the writings referred to in articles 4 and 6.

Short title.

Investment of money in annuities. Amended by: XIII.1983.5;

L.N. 407 of 2007.

Cap. 16.

Order of court respecting alienability of annuities.

Power of court to order capital of annuity to remain subject to entail.

Fact of inalienability of annuity, etc., to be stated in the writing.

3. (1) The competent court may direct that any of the following m one ys , provide d the a m ount be not le s s tha n one hu nd re d a nd s i x t e e n e u ros a n d fort y-s e v e n c e n t s (116. 4 7 ), be inves ted in an annu ity as prov id ed in th e las t p recedin g ar ticle, namely:

(a) the price or part of the price of property subject to

Investment of certain other moneys in annuities. Amended by: XIII.1983.5;

L.N. 407 of 2007.

*Original article 1 of this Ordinance, the title whereof was originally, ''To make some provisions relating to property subject to a fideicommissum'' has been incorporated as article 523 in the Civil Code (Chapter 16).

†See Proclamation No.II of 1895.

entail wh ich has been disen tailed for any purpose other than a public p urpose;
(b) the price or part of the price of prop erty, n ot alienable witho ut the authority of th e co urt, the alienation of which has been authorized for any purpose whatsoever;
(c) moneys belong ing to any minor under tutorship or person in terdicted or to any other person or body corporate represented b y an administrator appointed or confirmed b y a cou rt of civil jurisdiction;
(d) moneys assigned to a wife on the separation or in security of her dowry or dower.
(2) Th e provision s of subarticles (2), (3) and (4) of the last p rece d in g arti cl e sh al l ap pl y in th e c ase o f mo ne y s referred t o in paragraph (a) an d th e provisions of subarticle s (2) an d (4) of the s a i d ar ticl e s h al l ap p l y in th e cas e o f m o n e y s r e f e r r ed to in paragraphs (b), (c) and (d).

How annuities are constituted. Amended by: VI.1959.3.

Mode of payment of annuities.

4. For the purpo ses of the investment referred to in articles 2 a n d 3 , the r e s h a ll b e p r oduc e d to the Ac c ounta n t G e n e r a l a n a ut he nt ic ate d co py o f th e de cree ord erin g th e in ve stme nt , a nd o n the day to be fi xed by the Acco un tant Genera l th ere sha ll be paid in to his office the money req uired for the p urchase of th e an nuity; upon the re c e ip t o f s u c h m one y t h e Ac c ount a n t Ge ne ra l s h a l l c o ns t i t u t e t h e c o rr e s pon di ng a nnu it y by m e a n s o f a wri t i n g i n du plicate in the Form A annexed to this Ordin ance, o ne copy being ke pt in the offic e of the Ac counta n t Ge nera l a nd the other c opy delivered to the credito r of the annuity.

5. (1) The annuity shall be paid in arrear within the first fifte en da ys of th e month of Ja nuary in e ac h yea r; ea ch pa yme nt s h all be no te d down on the back of the writin g cons tituting the annu ity, o r of the writings referred to in the nex t following article, a n d no paym en t ma y be ma de withou t the production of th e sa id writing or writings.

(2) For the pu rposes of any su ch payment, the annuity shall be dee med to co mmence to run from th e fi rst day of th e mo nt h ne xt followin g that in which th e annuity was constituted.

Division of annuity. Amended by: VI.1959.3; XIII.1983.5;

L.N. 407 of 2007.

6. (1) Where an annuity is divid ed between two or more pe rs ons, the A cc ounta n t Ge ner al sh a ll, on the produc tion of th e do cuments relating to such division and the deliv ery of the writing referred to in th e last preced ing article, issue as many writ ings, in the Form B annex ed to this Ordinance, as are the shares into wh ich t h e a n n u ity s h a ll h a v e b een d i v i d e d , p r o v id e d ea ch s h are s h all correspond to a portion of the capital no t less th an eleven euros and sixty-five cents (11.65).

(2) No op position to any such division shall be considered, u n less it is m ad e b y means of a judicial ac t to be s e rv ed on the Accountant General an d the holder of the annuity.

7. (1) The annuity, unless subject to entail or oth erwise inalienable, is transferable even by endorsement.

(2) Such endorsemen t shall be made on the back of the relative writing; it shall state the name and surname of the endorsee and his father ’s name, and shall be dated and signed by the endorser.
(3) The Accountant General is not bound to examine the authenticity of the endorsements.

Transfer of annuity. Amended by: VI.1959.3.

8. Any transfer of an annuity subject to en tail or oth erwise i n al ie n a bl e , wh en e v er su c h t ra n sfer i s d ul y au t h o riz ed , s h al l , o n pain of nullity, be made by a public deed.

9. In case of an y transfer of an annuity by means of a private writing or p ublic deed the tran sferee shall cause the orig in al act o f tra n s f e r or a n a u the n tic c opy the r e o f to be tra n s m itt e d to the Accountant General.

10. The holder of the ann uity if h e has ap pointed an attorney to receive the amount thereof, o r th e person to whom the annu ity may have been pledged, shall cause the original power of attorney or the instrument by wh ich th e an nuity has b een p led ged, or an authentic copy thereof, to be transmitted to the Accountant General.

11. (1) On the duplicate copy of the writing preserved in his office in terms of article 4, the Accountant General shall note down any transfer made oth erwise than by endorsement, or any pledge, as we ll a s the da te on whic h he sh a l l ha ve re ce ive d th e doc um en ts mentioned in article 9 o r 10, as th e case may be.

(2) The transfer shall not be effectual in regard to third parties, and t he pledg e shall n ot be o perative, excep t fro m th e date abov e- mentioned.

Transfer of annuities subject to entail, etc., to be by public deed.

Original or copy of title of transfer to be produced to Accountant General.

Amended by: VI.1959.3.

Power of attorney or instrument of pledge to be produced to Accountant General.

Amended by:

VI.1959.3.

Accountant General to note down transfer or pledge of annuity on duplicate copy. Amended by: VI.1959.3.

12. No opposition to th e payment of th e annuity shall be admissible, except -

(a) where the title of the person holding the annuity in the name of an y other person, has ceased to exist;
(b) where the writin g relating to the annuity has been lost, stolen or d estroyed; or
(c) where th e holder h as become bankrupt.

Opposition to payment of annuity.

13. No payment of the annuity, or price of redemption of the an n ui ty wh ere th e an nu i ty h as be en red ee med , can be d ema nd ed , unless, in the case referred to in paragraph (a) of the last preceding article, the party concerned duly proves his right thereto, and in the case referred to in paragraph (b) of the said article, su ch party also g iv es su ffi cie nt sec urit y fo r th e rest orat io n of t he mo ne y pai d. In the case referred to in paragraph ( c) of the said article, the annuity or the price of redemptio n may be paid to the curator in ban kruptcy.

14. Where the writing has been lost, stolen or destroy ed, the party c o nc e rne d m ay in li eu th e reo f ob tain a nothe r writing upon

Conditions for payment of annuity in certain cases.

Loss, etc., of the writing.

Limitation of action.

proving his right thereto and giv ing sufficient security.

15 . (1) An action for the yearly payments of an annuity shall be barred by prescription, in reg ard to any claiman t, by the lapse of five years to run from the fifteenth day of the month of January.

(2) An action for the payment of the price of redemption shall be barred by prescription by the lapse of thirty years to run from the pu blication of the no tice referred to in article 17.

Annuities redeemable by Government. Amended by: VI.1959.3;

L.N. 4 of 1963.

16 . Any annuity con stitu ted under this Ordinance shall be r e d eem ab le, at an y tim e, a t th e d i s c r e tio n o f th e M i n i s t er r e s p o n s i b l e f o r f i n a n ce, b y th e p a y m en t o f a s u m eq u a l to th at re c eive d by the A cc ountan t Ge ne ral for th e cons titution of su c h annuity:

P r ov id e d th a t th e Gov e rnm e nt m a y no t, fo r a n y re a s on whatsoever, be compelled to red eem any such annuity.

Cessation of annuity in case of redemption by Government. Amended by: VI.1959.3;

L.N. 4 of 1963.

Price of redemption of annuities subject to entail, etc., may

not be paid without

order of court.

17 . (1) Where the Minister responsible for finance shall order any ann uity to be red eemed, such annuity shall cease from the day o n whi ch such order shall have been pu blished by th e Acc oun tant Ge nera l by m ea n s of a notic e in th e Gove rnm ent Gaz ette , which n otice shall contai n a descri ption of the an nuity and an int imation to the holder of the annuity to attend at the office of the Acco untant Gen eral to receive the capital.

(2) Th e price o f redemption of an annuity subject to entail or otherwise inalienable may no t be paid without an order of the cou rt, and it shall be lawful for the court to give such directions as it may deem pro per in th e interest of the parties concerned.

FORMS FORM A (ARTICLE 4)

WRITING FOR CONSTITUTING AN ANNUITY No...................
I, the undersigned, Accoun tant General, declare that in compliance with the decree of (here state the co urt) dated the ........... a yearly and perpetual an nuity of ................ in favou r of ............................. has this day been created and constituted u nder the provisions of the Investm ent of Certain Moneys Ordinance (Cap. 26); which annuity I bind myself in the name of the Government of M alta, to pay to the said ........................................ o r to his lawful representative, every year, within th e first fifteen d ays of the month of January.
The aforesaid ann uity is constituted by me as aforesaid for the price of €............................ which amount I hereby declare to have already received on account of the Government of Malta.
Treasury,
The ........... day of ............................. 20
Approved

Minister responsible fo r finan ce Accou nta nt General

Amended by: VI.1959.3;

L.N. 4 of 1963;

XIII.1983.4. Substituted by: L.N. 407 of 2007.

Amended by: VI.1959.3;

L.N. 4 of 1963;

XIII.1983.4. Substituted by: L.N. 407 of 2007.

FORM B

(ARTICLE 6)

WRITING ISSUED IN THE CASE OF A DIVISION OF AN ANNUITY
Whereas the yearly annuity o f L ................... constituted under the provisions of the Investment of Certain Moneys Ordinance (Cap.
26 ) by a writing No ....... issued o n the ....... in favou r of ............
has been div ided into ..........sh ares.
Now therefore by these presents the undersigned, Acco untant Gen eral, in the name of the Government of M alta, binds himself to pay to ........ by whom the (here state the share) part of the said annuity has been acquired, or to his lawfu l represen tative, every year, within the first fifteen days of th e month of January, the su m
of € ................................
Treasury,
The ...............................day of ................ 20
Approved

Minister respon sible for finance Accountant General