  INVESTMENT OF CERTAIN MONEYS [ CAP. 26.  1
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 and Act XIII of 1983.
Short title.
Moneys Ordinance.
Investment of 
money in 
annuities. 
Amended by: 
XIII.1983.5. 
Cap. 16 .
2. (1) In the case of expropriation for a public purpose of any
property subject to entail or in the case of licitation of any property
subject to entail as provided in section 523 of the Civil Code, it
shall be lawful for the competent court to order that the
compensation payable in respect of the property expropriated,
where such compensation is not less than fifty liri, or the shares of
the proceeds appertaining to the co-owners of the property sold by
licitation, whatever the amount thereof, be invested in the purchase
of a perpetual annuity to be, upon such order, constituted by the
Government of Malta, at the rate of two and one-half  per centum ,
according to the provisions of this Ordinance, provided the court is
satisfied of the expediency of such investment in the interest of the
parties concerned.
Order of court 
respecting 
alienability of 
annuities.
(2) The court may, either in the order for the purchase of the
annuity or subsequently, upon the demand of any party interested,
give the requisite directions respecting the alienability of the
annuity.
Power of court to 
order capital of 
annuity to remain 
subject to entail.
(3) The court may also order that the capital of the annuity
shall remain subject to the same entail as a  surrogatum  for the
property expropriated or sold by licitation.
Fact of 
inalienability of 
annuity, etc., to be 
stated in the 
writing.
(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 sections 4 and 6.
Investment of 
certain other 
moneys in 
annuities.  
Amended by: 
XIII.1983.5.
3. (1) The competent court may direct that any of the
following moneys, provided the amount be not less than fifty liri,
be invested in an annuity as provided in the last preceding section,
namely:
( a ) the price or part of the price of property subject to
entail which has been disentailed for any purpose other
than a public purpose;
*Original section 1 of this Ordinance, the title whereof was originally, ''To make some
provisions relating to property subject to a fideicommissum'' has been incorporated as
section 523 in the Civil Code (Chapter 16).
† See  Proclamation No.II of 1895.
    2               CAP. 26. ]  INVESTMENT OF CERTAIN MONEYS 
( b ) the price or part of the price of property, not alienable
without the authority of the court, the alienation of
which has been authorized for any purpose
whatsoever;
( c ) moneys belonging to any minor under tutorship or
person interdicted or to any other person or body
corporate represented by an administrator appointed or
confirmed by a court of civil jurisdiction;
( d ) moneys assigned to a wife on the separation or in
security of her dowry or dower.
(2) The provisions of subsections (2), (3) and (4) of the last
preceding section shall apply in the case of moneys referred to in
paragraph  (a)  and the provisions of subsections (2) and (4) of the
said section shall apply in the case of moneys referred to in
paragraphs   ( b ), ( c )   and   ( d ).
How annuities are 
constituted.  
Amended by: 
VI.1959.3.
4. For the purposes of the investment referred to in sections 2
and 3, there shall be produced to the Accountant General an
authenticated copy of the decree ordering the investment, and on
the day to be fixed by the Accountant General there shall be paid
into his office the money required for the purchase of the annuity;
upon the receipt of such money the Accountant General shall
constitute the corresponding annuity by means of a writing in
duplicate in the Form A   annexed to this Ordinance, one copy being
kept in the office of the Accountant General and the other copy
delivered to the creditor of the annuity.
Mode of 
payment of 
annuities.
5. (1) The annuity shall be paid in arrear within the first
fifteen days of the month of January in each year; each payment
shall be noted down on the back of the writing constituting the
annuity, or of the writings referred to in the next following section,
and no payment may be made without the production of the said
writing or writings.
(2) For the purposes of any such payment, the annuity shall be
deemed to commence to run from the first day of the month next
following that in which the annuity was constituted.
Division of 
annuity.  
Amended by: 
VI.1959.3; 
XIII.1983.5.
6. (1) Where an annuity is divided between two or more
persons, the Accountant General shall, on the production of the
documents relating to such division and the delivery of the writing
referred to in the last preceding section, issue as many writings, in
the Form B annexed to this Ordinance, as are the shares into which
the annuity shall have been divided, provided each share shall
correspond to a portion of the capital not less than five liri.
(2) No opposition to any such division shall be considered,
unless it is made by means of a judicial act to be served on the
Accountant General and the holder of the annuity.
Transfer of 
annuity. 
Amended by: 
VI.1959.3.
7. (1) The annuity, unless subject to entail or otherwise
inalienable, is transferable even by endorsement.
(2) Such endorsement shall be made on the back of the relative
writing; it shall state the name and surname of the endorsee and his
  INVESTMENT OF CERTAIN MONEYS [ CAP. 26.  3
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 
annuities subject to 
entail, etc., to be by 
public deed.  
8. Any transfer of an annuity subject to entail or otherwise
inalienable, whenever such transfer is duly authorized, shall, on
pain of nullity, be made by a public deed.
Original or copy of 
title of transfer to 
be produced to 
Accountant 
General.   Amended 
by: VI.1959.3.
9. In case of any transfer of an annuity by means of a private
writing or public deed the transferee shall cause the original act of
transfer or an authentic copy thereof to be transmitted to the
Accountant General.
Power of attorney 
or instrument of 
pledge to be 
produced to 
Accountant 
General.   Amended 
by:   VI.1959.3.
10. The holder of the annuity if he has appointed an attorney to
receive the amount thereof, or the person to whom the annuity may
have been pledged, shall cause the original power of attorney or the
instrument by which the annuity has been pledged, or an authentic
copy thereof, to be transmitted to the Accountant General.
Accountant 
General to note 
down transfer or 
pledge of annuity 
on duplicate copy.   
Amended by: 
VI.1959.3.
11. (1) On the duplicate copy of the writing preserved in his
office in terms of section 4, the Accountant General shall note
down any transfer made otherwise than by endorsement, or any
pledge, as well as the date on which he shall have received the
documents mentioned in section 9 or 10, as the case may be.
(2) The transfer shall not be effectual in regard to third parties,
and the pledge shall not be operative, except from the date above-
mentioned.
Opposition to 
payment of 
annuity.
12. No opposition to the payment of the annuity shall be
admissible, except -
( a ) where the title of the person holding the annuity in the
name of any other person, has ceased to exist;
( b ) where the writing relating to the annuity has been lost,
stolen or destroyed; or
( c ) where the holder has become bankrupt.
Conditions for 
payment of annuity 
in certain cases.
13. No payment of the annuity, or price of redemption of the
annuity where the annuity has been redeemed, can be demanded,
unless, in the case referred to in paragraph   ( a ) of the last preceding
section, the party concerned duly proves his right thereto, and in
the case referred to in paragraph ( b ) of the said section, such party
also gives sufficient security for the restoration of the money paid.
In the case referred to in paragraph ( c ) of the said section, the
annuity or the price of redemption may be paid to the curator in
bankruptcy.
Loss, etc., of the 
writing. 
14. Where the writing has been lost, stolen or destroyed, the
party concerned may in lieu thereof obtain another writing upon
proving his right thereto and giving sufficient security.
Limitation of 
action.
15. (1) An action for the yearly payments of an annuity shall
be barred by prescription, in regard to any claimant, by the lapse of
five years to run from the fifteenth day of the month of January.
    4               CAP. 26. ]  INVESTMENT OF CERTAIN MONEYS 
(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
publication of the notice referred to in section 17.
Annuities 
redeemable by 
Government.   
Amended by: 
VI.1959.3; 
L.N. 4 of 1963.
16. Any annuity constituted under this Ordinance shall be
redeemable, at any time, at the discretion of the Minister
responsible for finance, by the payment of a sum equal to that
received by the Accountant General for the constitution of such
annuity:
Provided that the Government may not, for any reason
whatsoever, be compelled to redeem any such annuity.
Cessation of 
annuity in case of 
redemption by 
Government.  
Amended by: 
VI.1959.3; 
L.N. 4 of 1963.
17. (1) Where the Minister responsible for finance shall order
any annuity to be redeemed, such annuity shall cease from the day
on which such order shall have been published by the Accountant
General by means of a notice in the Government Gazette, which
notice shall contain a description of the annuity and an intimation
to the holder of the annuity to attend at the office of the Accountant
General to receive the capital.
Price of 
redemption of 
annuities subject to 
entail, etc., may 
not be paid without 
order of court.
(2) The price of redemption of an annuity subject to entail or
otherwise inalienable may not be paid without an order of the court,
and it shall be lawful for the court to give such directions as it may
deem proper in the interest of the parties concerned.
  INVESTMENT OF CERTAIN MONEYS [ CAP. 26.  5
Amended by: 
VI.1959.3; 
L.N. 4 of 1963; 
XIII.1983.4.
FORMS
FORM A
(S E C T I O N  4)
WRITING FOR CONSTITUTING AN ANNUITY
No...................
I, the undersigned, Accountant General, declare that in compliance
with the decree of ( here   state the court)  dated the ........... a yearly
and perpetual annuity of ................ in favour of .............................
has this day been created and constituted under the provisions of
the Investment of Certain Moneys Ordinance (Cap.26); which
annuity I bind myself in the name of the Government of Malta, to
pay to the said ........................................ or to his lawful
representative, every year, within the first fifteen days of the month
of January.
 The aforesaid annuity is constituted by me as aforesaid for the
price of Lm ............................ which amount I hereby declare to
have already received on account of the Government of Malta.
Treasury,
      The ........... day of ............................. 19
Approved
Minister responsible for finance                       Accountant General
    6               CAP. 26. ]  INVESTMENT OF CERTAIN MONEYS 
Amended by: 
VI.1959.3; 
L.N. 4 of 1963; 
XIII.1983.4.
FORM B
(S E C T I O N  6)
WRITING ISSUED IN THE CASE OF A DIVISION OF AN 
ANNUITY
Whereas the yearly annuity of Lm ................... constituted under
the provisions of the Investment of Certain Moneys Ordinance
(Cap. 26) by a writing No ....... issued on the ....... in favour of
............ has been divided into ..........shares.
Now therefore by these presents the undersigned, Accountant
General, in the name of the Government of Malta, binds himself to
pay to ........ by whom the ( here state the share ) part of the said
annuity has been acquired, or to his lawful representative, every
year, within the first fifteen days of the month of January, the sum
of Lm ................................
Treasury,
  The ...............................day of ................19
Approved
Minister responsible for finance                   Accountant General
