 PREMIUM BONDS    g CAP. 223.  1
CHAPTER 223 
PREMIUM BONDS ACT
To make provision for the issue, promotion and management of premium
bonds.
(16th March, 1971) *
Enacted by ACT VII of 1971, as amended by Acts: XXIX of 1979, XXXI
of 1981, XIII of 1983 and XVI of 1997.
Short title.
Interpretation. 
Amended by: 
XXIX. 1979.3.
2. In this Act, unless the context otherwise requires - 
"the Account" means the Premium Bonds Income Account held
with the Bank under section 18 of this Act;
Cap. 204.
"the Bank" means the Central Bank of Malta established under
the Central Bank of Malta Act;
"bond" means a premium bond issued under this Act; 
"financial year" has the same meaning as it has for the purposes
of the Constitution;
"the Fund" means the Premium Bonds Fund established under
section 17 of this Act;
"the Gazette" means the Malta Government Gazette; 
"the Government" means the Government of Malta;
"holder" in relation to a bond means the person in whose name
the bond appears in the register;
"House" means the House of Representatives; 
"Minister" means the Minister responsible for finance;
"percentage rate" means a rate per cent per annum on the value
of a bond;
"prescribed" means prescribed by regulations made under this
Act;
"register" means the register of bonds kept for the purposes of
this Act under section 7 thereof; and
"registered" shall be construed accordingly.
Authority to issue 
bonds.
3. (1) Subject to the provisions of this Act, it shall be lawful
for the Minister to authorise the issue of premium bonds.
(2) Where the issue of bonds has been authorised under
subsection (1) of this section it shall be lawful for the Bank, subject
to the provisions of this Act and of any regulations made
thereunder and under and in accordance with such directions as the
Minister may give, to issue, promote and administer bonds for or
on behalf of the Government.
* See  Government Notice No. 226 of 16th March, 1971.
  2        CAP. 223. h              PREMIUM BONDS   
(3) Any act done and any preliminary expenses incurred in
connection with the issue, promotion and administration of bonds
before the coming into force of this Act shall have the same effect
and validity as if such acts had been validly done and such
expenses been lawfully incurred under this Act; and any act or
thing so commenced but remaining unfinished at the date of the
coming into force of this Act may be continued under this Act as if
such act or thing had been initiated under this Act.
Denomination and 
purchase bonds.
4. (1) Bonds shall be issued in such denomination and may be
purchased in such denomination and up to such amount as may be
prescribed.
(2) Applications for the purchase of bonds shall be made to the
Bank or to such agents as may be appointed by the Bank.
Holder entitled to 
bond certificate.
5. The purchaser of a bond shall be entitled to obtain from the
Bank a bond certificate made out in such form as the Bank may
deem proper so however that all bonds’ certificates shall be issued
in the same form:
  Provided that where more than one bond is purchased by the
same person at any one time the purchaser may be issued with a
document in lieu of the bonds’ certificate in respect of the bonds
purchased, specifying the total number of bonds held and the
registered number of each of such bonds; but for all other purposes
of this Act and of any regulations made thereunder each of the
bonds shown in the document in lieu of certificates shall be deemed
to be a separate registered bond in the same way as if a separate
bond certificate had been issued in respect of each of them.
Non-transferability 
of bonds.
6. Save as may otherwise be prescribed, bonds shall not be
transferable.
Registration of 
bonds.
7. (1) The Bank shall cause a register to be kept of all bonds
and of the transactions relating thereto and shall cause such entries
to be made therein as may be necessary to show the names,
addresses and other relevant details of the holders of the bonds
registered therein.
(2) Save as may otherwise be prescribed, no person shall be
entitled to any bond or to any payment thereunder unless he is the
holder thereof.
Register to be 
conclusive 
evidence of facts 
entered therein.
8. The entries in the register relating to the holders of bonds
and to transactions concerning the bonds registered therein shall be
conclusive evidence of the facts, matters and particulars to which
those entries relate; and a document purporting to be issued by the
Bank certifying that it is a true copy of such an entry in the register
as aforesaid shall be receivable in evidence in any judicial
proceedings and shall, until the contrary is proved, be evidence of
the contents of the entry in the register of which it purports to be a
true copy.
The draw. 9. (1) There shall be held in each month after the third
calendar month following the month during which bonds are first
offered for sale a draw, to be held in the prescribed manner, for the
 PREMIUM BONDS    g CAP. 223.  3
allocation of the monthly prize fund to be determined in accordance
with section 11 of this Act.
(2) The time and place of the draw shall be appointed by the
Minister and notice thereof shall be published in the Gazette: 
  Provided that at any time before the draw is held the Minister
may alter the time and the place of the draw or either of them and in
any such case notice of the alteration shall be published in the
Gazette as soon as practicable:
  Provided further that if on the day or days appointed for the
draw as aforesaid the persons charged with the supervision of the
draw are satisfied that the draw cannot be held or cannot be
completed on that day or on those days they shall order the draw to
be postponed and notify the Minister forthwith of their decision;
and in any such case the Minister may authorise the draw to be
continued on subsequent days or direct that the draw shall be held
at such time and place as he may appoint; and where the time or
place of the draw is so altered notice thereof shall be published in
the Gazette.
(3) The place where the draw is held shall be accessible to
members of the public during the draw.
Bonds eligible to 
participate in a 
draw.
10. (1) A bond shall be eligible to participate in a draw -
( a ) if it has been registered for three consecutive calendar
months following the month in which it was
purchased, before the draw is held; and
( b ) if it has not been repaid before the first day of the
month in which the draw is held.
(2) A bond shall participate in every draw held while it is
eligible to participate therein under subsection (1) of this section: 
  Provided that the holder of a bond shall not be entitled to more
than one prize in any one draw in respect of the same bond, and if
such bond is drawn more than once in any one draw he shall be
allotted the highest prize for which it is so drawn.
Monthly prize fund 
and distribution of 
prizes. 
Amended by: 
XIII. 1983.5.
11. (1) The prize fund for each draw shall be determined by
calculating the current percentage rate for one month on each bond
eligible to participate in that draw:
  Provided that the prize fund for any draw shall in no case be
less than six thousand liri.
(2) The percentage rate shall be established from time to time
by the Minister after consultation with the Bank and shall be
published in the Gazette.
(3) The number and value of the prizes shall be such as the
Minister shall, from time to time, after consultation with the Bank,
determine and publish in the Gazette.
Prizes exempt from 
income tax. 
Cap. 123.
12. A prize payable under this Act shall be deemed not to be
income for the purposes of the Income Tax Act.
  4        CAP. 223. h              PREMIUM BONDS   
Notification of 
prize winners and 
payment of prizes.
13. (1) As soon as practicable after a draw the registered
numbers of the winning bonds shall be published in the Gazette and
the Bank shall notify by letter every person in whose name a
winning bond is registered.
(2) Subject to the provisions of this Act and of any regulations
made thereunder a prize payable under this Act shall be paid to the
person in whose name the winning bond in respect of that prize is
registered.
Conditions for 
payment of prizes.
14. (1) A prize shall not be payable - 
( a ) if the bond drawn in respect of that prize is not
presented before the expiration of twelve months from
the date of issue of the notification given under section
13 of this Act; or
( b ) if the bank declares that the bond is invalid; or
( c ) if the bond contains any alteration, erasure or abrasion
of any of the numbers printed thereon;
and in respect of any of the matters aforesaid the decision of the
Bank shall be final:
  Provided that the Bank may at its discretion effect payment of
the prize, under such conditions as it may deem fit to impose, if the
claimant’s inability to comply with paragraph ( a ) of this subsection
is notified to the Bank in writing by the claimant and such notice is
received by the Bank within the period of twelve months mentioned
in that paragraph.
(2) Any prize which remains unpaid in accordance with
subsection (1) of this section shall be forfeited to the Government
and paid into the Account.
Repayment of 
bonds.
15. Subject to the provisions of this Act and of any regulations
made thereunder, bonds shall be repayable at their face value on
application:
  Provided that no application for repayment shall be entertained
if the bond has not participated in at least one draw.
Where valid 
discharge cannot 
be obtained.
16. Where the Bank is unable, for any reason, to obtain a valid
discharge for any payment falling to be made to any person in
respect of a bond, it may, unless otherwise provided by or under
this Act, open an account in the Government Savings Bank for the
benefit of the person to whom payment appears to be due and may,
until payment can be effected to the said person or until a valid
payment can otherwise be made, retain the amount due in the said
account.
Premium Bonds 
Fund.
17. (1) There shall be established a fund to be called the
Premium Bonds Fund, and there shall be paid into the Fund all
proceeds derived from the sale of bonds and there shall be paid out
of the Fund all repayments of bonds.
(2) The Fund shall be held and administered by the Bank in
accordance with such directions as the Minister, after consultation
 PREMIUM BONDS    g CAP. 223.  5
with the Bank, may give.
(3) The repayment of all bonds outstanding at any time and all
other payments due under this Act are guaranteed by the
Government and such moneys as may be required to effect any
payment as aforesaid under the said guarantee shall be a charge on
the Consolidated Fund and shall be payable out of the said
Consolidated Fund and the assets of the Government.
Premium Bonds 
Income Account.
18. (1) All dividends, interest and other revenue derived from
investments or other employment of moneys in the Fund made
under subsection (2) of section 17 of this Act and all sums due to
the Government under subsection (2) of section 14 of this Act shall
be paid into an account to be called the Premium Bonds Income
Account and to be held with the Bank.
(2) There shall be charged upon and paid out of the Account
without any further appropriation other than this Act:
( a ) all expenses relating to the promotion and
administration of the bonds and all other charges
connected therewith, including all preliminary
expenses incurred or paid before the coming into force
of this Act; and
( b ) all sums due by way of a prize under this Act and all
other charges and expenses connected with the draw
and with the distribution of prizes under this Act.
Surplus and deficit 
in the Account.
19. (1) Without prejudice to the provisions of subsection (3)
of section 17 of this Act, if at any time during any financial year the
amount to the credit of the Account is insufficient to meet the
expenses and charges due on the said account in accordance with
subsection (2) of section 18 of this Act, the Minister may advance
to and the Bank shall pay into the said Account such sum or sums
as may be necessary to meet the expenses and charges aforesaid
under such terms and conditions as the Minister, after consultation
with the Bank, may determine.
(2) If on the last day of any financial year there is a surplus in
the Account, the Minister may, after consultation with the Bank,
direct the transfer of the surplus or of any part thereof to the
Consolidated Fund:
  Provided that no such transfer as aforesaid may be directed by
the Minister unless the liquid assets of the Fund together with the
estimated market value of the investments held by the Fund as on
that day and any transfer of surplus from the Account into the Fund
under this proviso exceed by at least fifteen per cent the amount of
bonds outstanding on that day; and in any such case any surplus in
the Account shall either be retained in the Account or transferred to
the Fund, or partly so retained and partly so transferred, as the
Minister may, after consultation with the Bank, direct.
Audit.
Amended by:
XVI. 1997.8.
20. The Bank shall keep or cause to be kept proper accounts
and other appropriate records relating to the issue, promotion and
management of bonds and to the management of the prize fund and
  6        CAP. 223. h              PREMIUM BONDS   
all such accounts and records shall be audited by the Auditor
General.
Submission of 
estimates of 
revenue and 
expenditure.
21. The Bank shall, at least not later than three months before
the beginning of each financial year, commencing with the first
financial year following the year in which bonds are first issued,
submit to the Minister an estimate of expenditure expected to be
incurred in that year on the issue, promotion and management of
bonds and an estimate for the same period of the receipts expected
to accrue to the Account.
Submission of 
statements by 
Bank.
Amended by:
XVI. 1997.8.
22. (1) The Bank shall, not later than three months after the
close of each financial year, submit to the Minister:
( a ) a statement of the assets and liabilities of the Fund as
on the last day of the financial year to which the
statement relates;
( b ) a statement of the position of the Account as on the
day aforesaid;
( c ) a statement of the amount of bonds outstanding on the
day aforesaid, showing the bonds issued and repaid
during the year; and
( d ) a list of the securities and other investments held by
the Fund as on the day aforesaid, showing in respect of
each such security or investment the nominal value,
the purchase price and the last known market value
thereof.
(2) The statements and the list aforesaid shall be duly signed
for and on behalf of the Bank and shall be certified by the Auditor
General.
(3) The Minister shall cause the statements and the list
submitted to him under this section to be published in the Gazette
not later than one month after he has received them.
(4) Nothing in the foregoing provisions of this section shall be
construed as precluding the Minister from requiring the Bank to
submit to him such further information and documents relating to
bonds and the management thereof as he may deem necessary or
expedient.
Forgery. 
Cap. 9.
23. For the purposes of the Criminal Code any document
issued under or in pursuance of this Act entitling any person to any
payment under this Act or to any other document entitling a person
to any such payment shall be deemed to be a document upon the
presentation of which a payment may be obtained within the
meaning of section 167 of the said Code, and the provisions of that
Code shall apply accordingly.
Power to make 
regulations.
24. (1) The Minister may make and, when made, amend,
repeal and re-enact regulations concerning all matters necessary or
expedient for giving effect to any of the provisions of this Act and,
without prejudice to the generality of the foregoing, to make
provision for:
( a ) the value of each bond in Malta currency; 
 PREMIUM BONDS    g CAP. 223.  7
( b ) the manner of purchase of bonds;
( c ) the maximum holding of bonds by any person; 
( d ) the eligibility of persons to be holders of bonds;
( e ) the method of payment of any sum payable under this
Act;
( f ) matters relating to the eligibility of bonds for a draw; 
( g ) the control of draws, including provision in respect of
the persons who are to supervise the draws, the powers
and duties in relation to draws and the settlement of
disputes or difficulties arising in connection therewith;
( h ) the procedure to be followed in the holding of draws; 
( i ) the forfeiture of bonds in favour of the Government; 
( j ) all matters required or authorised by this Act to be
prescribed and matters in respect of which the Act
provides that they are to be subject to, or are made
saving the provisions of, any regulations made under
this Act;
( k ) all matters incidental to or connected with any matter
hereinbefore mentioned.
(2) Regulations made under this Act shall be laid on the Table
of the House as soon as may be after they are made and if, within
the period of twenty-eight days after they are so laid, the House
resolves that they be annulled or amended, the same shall
thereupon cease to have effect or shall be so amended, as the case
may require, but without prejudice to the validity of anything
previously done thereunder or to the making of new regulations.
(3) In reckoning for the purposes of subsection (2) of this
section any such period of twenty-eight days, no account shall be
taken of any time during which the House is not in session or
during which it is adjourned for more than seven days.
Secrecy. 
Amended by: 
XIII. 1983.5.
25. (1) No person who is appointed to discharge any duty in
connection with bonds shall disclose the name of the holder or the
amount which he may hold or any prize which he may have drawn
except for the purposes of this Act or unless required to do so under
any law for the time being in force.
(2) Any person who contravenes the provisions of this section
shall be liable on conviction to a fine ( multa ) not exceeding one
hundred liri.
Actions against 
Government or 
Bank barred by 
lapse of two years 
from date of draw.
26. No action against the Government, the Bank or any person
acting under their authority in connection with the payment of a
prize under this Act arising out of anything done or omitted to be
done by or on the directions of the Minister or the Bank under this
Act shall lie unless it is commenced not later than two years after
the date on which the prize was, or is claimed to have been, drawn.
Non-liability of 
Government and 
Bank.
27. (1) The Government, the Bank and any person acting
under their authority shall not be liable in respect of any payment
made or act done in accordance with the provisions of this Act or of
  8        CAP. 223. h              PREMIUM BONDS   
any regulations made thereunder unless it is shown, in respect of
any such person as aforesaid, that he acted in bad faith; and any
payment made as aforesaid shall, saving the provisions of this Act
concerning the rights of third parties, be deemed to be a valid
payment and the receipt by the person to whom the payment is
made shall constitute a full discharge of the Government and the
Bank for the amount so paid.
(2) Where a warrant for any payment in respect of a bond is
issued as payable to some person who is neither the holder nor a
person otherwise entitled by or under this Act to receive such
payment, then if it is shown that -
( a ) the warrant was issued in good faith and without
negligence, and
( b ) the issue of the warrant to that person is attributable to
some act or omission on the part of the holder or of the
person otherwise entitled to receive payment,
the warrant shall, saving the provisions of this Act concerning the
rights of third parties, be deemed to have been duly issued to the
person entitled to receive payment.
Saving for rights of 
third parties.
28. Nothing contained in section 27 of this Act shall operate so
as to prevent the recovery by any person of any money lawfully due
to him from the person to whom that money was paid or from any
person claiming under such person or so as to affect the rights of
any person in respect of any bond against a third party.
Exemption from 
duty on 
documents. 
Amended by: 
XXXI. 1981.64.
29. All documents and instruments made or used under the
provisions of this Act or of any regulations made thereunder shall
be exempt from duty on documents.
Exemption from 
Public Lotto 
Ordinance. 
Cap. 70.
30. Section 11 of the Public Lotto Ordinance shall not apply to
the issue of bonds or to the holding of a draw under this Act.
