    LOCAL LOANS (REGISTERED STOCK AND SECURITIES)    ġ CAP. 161.         1
CHAPTER 161 
LOCAL LOANS (REGISTERED STOCK AND SECURITIES) 
ORDINANCE
To repeal and re-enact the law declaring the terms and conditions applicable to local loans
authorized to be raised by the Government of Malta and to make provision in this connection
for the creation and issue of registered stock in addition to the issue of securities in the form
of debentures.
4th December, 1959
Enacted by ORDINANCE XVIII of 1959, as amended by Acts: X of 1963, XXVII of 1971,
XXXIV of 1972, XVIII of 1991, XVI of 1997 and IV of 1999.
ARRANGEMENT OF ORDINANCE                 
Articles 
Part I. Preliminary 1-3
Part II.       Power to Raise Loans  4-7 
Part III. Registered Stock  8-16 
Part IV.  Debentures  17-20 
Part V.  Payment of Interest on Stock and Securities  21-24 
Part VI.  Sinking Funds  25-30 
Part VII.  Conversion of Loans  31-32 
Part VIII.  Issue of Duplicates and Renewals of Stock Certificates and
Securities and Exchange and Consolidation
33-39 
Part IX.  Miscellaneous  40-44 
  2        CAP. 161. ħ       LOCAL LOANS (REGISTERED STOCK AND SECURITIES)
PART I 
PRELIMINARY
Short title. 1. The title of this Ordinance is Local Loans (Registered
Stock and Securities) Ordinance.
Interpretation. 
Amended by: 
XXXIV.1972.2.
2. In this Ordinance, unless the context otherwise requires -
"Accountant General" means the Accountant General of the
Government of Malta;
"debenture" means any debenture issued under the provisions of
this Ordinance;
"Malta" has the same meaning as is assigned to it by article 124
of the Constitution of Malta;
"the register" means the register of stock kept by the Accountant
General for the purpose of this Ordinance;
"registered stock" or "stock" means Malta stock issued under the
provisions of this Ordinance;
"security" means any debenture issued under the provisions of
this Ordinance;
"stockholder" means a person holding registered stock who is
entered as the owner thereof in the register.
Scope. 3. This Ordinance shall be applicable only to loans raised
locally in Malta.
PART II 
POWER TO RAISE LOANS
Issue of registered 
stock and 
debentures for the 
purpose of raising 
authorized loans. 
Amended by: 
X. 1963.2; 
XXVII. 1971.2.
4. (1) Whenever by any enactment authority is given to the
Minister responsible for finance to raise any sum of money by way
of loan for any purpose mentioned in that enactment, or whenever it
is necessary or convenient to raise any sum of money for the
purpose of repaying any loan raised by the Government under this
Ordinance or any other enactment, the Minister responsible for
finance may, from time to time, raise such sum or any part thereof
under the provisions of this Ordinance in either of the following
modes:
( a ) by the creation and issue of registered stock;
( b ) by the issue of securities in the form of debentures.
(2) Each issue of registered stock or securities under this
Ordinance for the purpose of raising any specified sum of money
shall be deemed to be stock or securities issued in respect of a
separate loan notwithstanding that the sum of money so raised is
part only of a sum of money authorized by any other enactment to
be raised by way of loan.
    LOCAL LOANS (REGISTERED STOCK AND SECURITIES)    ġ CAP. 161.         3
Loans to be 
charged upon 
revenue.
5. The principal moneys and interest represented or secured
by any registered stock or securities issued under this Ordinance
are hereby charged upon and shall be payable out of the general
revenue and assets of the Government of Malta.
Minister to direct 
mode of raising 
loans and other 
particulars. 
Amended by: 
X. 1963.2;
IV.1999.2.
6. (1) The Minister responsible for finance shall, in respect of
each loan to be raised under this Ordinance, specify by direction
published in the Government Gazette -
(a ) the sum of money to be raised by that loan; 
( b ) the mode or modes of raising the loan;
( c ) the rate of interest payable on the loan;
( d ) the dates in each year on which the half-yearly interest
of the loan shall be payable;
( e ) the rate, if any, at which a half-yearly appropriation
out of the general revenue and assets of the
Government of Malta shall be made as a contribution
to the sinking fund established for the purpose of
redeeming that loan and the period within which such
contribution shall commence;
( f ) the date of redemption of the registered stock or
securities to be issued for the purpose of raising that
loan and, where applicable, the method of redemption
of such stock or securities;
( g ) whether the interest payable on any registered stock or
debentures issued under the authority of this
Ordinance shall be exempt from all or any of the taxes
and duties payable under any other law in force in
Malta.
(2) The date of redemption of any registered stock or securities
shall not be later than sixty years from the date of issue of such
stock or securities.
(3) Where the Minister responsible for finance deems it
expedient to reserve an option to redeem any registered stock or
securities at any date earlier than the date of redemption specified
for such stock or securities by the directions under sub-article (1),
he shall by such directions further specify the terms and conditions
on which such stock or securities may be redeemed at any earlier
date.
Accountant 
General to make 
necessary 
arrangements. 
Amended by: 
X. 1963.2.
7. Upon the publication under article 6 of this Ordinance of
the directions of the Minister responsible for finance in respect of
any loan to be raised under this Ordinance the Accountant General
may, subject to the provisions of such directions and to such further
directions as the Minister responsible for finance may give in that
behalf, make all such arrangements as may be necessary to raise
that loan upon the most favourable terms that can be obtained.
  4        CAP. 161. ħ       LOCAL LOANS (REGISTERED STOCK AND SECURITIES)
PART III 
REGISTERED STOCK
Register of stock. 8. The Accountant General shall keep a register in respect of
each issue of registered stock under this Ordinance in which all
such stock and all transfers of and all dealings in such stock shall
be registered and in which shall be entered all matters and things
which by this Ordinance are required to be entered in the register.
Liability of 
Government in 
respect of issue of 
registered stock. 
Amended by: 
X. 1963.2.
9. The Government shall be bound to pay to the person
registered for the time being as the stockholder the principal sum
represented by that stock and the interest due thereon, in
accordance with the provisions of this Ordinance, at the rate and on
the dates directed by the Minister responsible for finance under
article 6 of this Ordinance or in pursuance of an option to redeem
such stock reserved in such directions.
Stockholder. 10. For the purposes of this Ordinance, no person shall be
entitled to any registered stock unless he is registered as a
stockholder in respect thereof.
Registration of first 
stockholders.
11. No person shall be registered as a first stockholder of any
registered stock except upon payment in full of the purchase price
of that stock.
Stock certificate. 12. Every stockholder shall be entitled to obtain from the
Accountant General a stock certificate in a form to be prescribed
and no stockholder, other than the first stockholder, of any stock
shall be entitled to obtain a stock certificate save upon payment of
the prescribed fee:
  Provided that one stock certificate only shall be issued in
respect of any one holding.
Transfer of 
registered stock.
13. (1) Subject to the provisions of sub-article (3) of this
article, the title of any stockholder to any registered stock shall not
be deemed for the purposes of this Ordinance to be transferred to
any other person save upon the execution of such instrument of
transfer as may be prescribed and upon the registration of the
transferee as the stockholder under article 14 of this Ordinance.
(2) Interest which has fallen due in respect of any registered
stock at the date of any transfer of such stock but which has not
been paid to the stockholder for the time being, shall not be deemed
to be payable to a transferee of that stock unless the instrument of
transfer expressly provides for the payment of that interest to that
transferee.
(3) When the Accountant General is satisfied that a stockholder
has died he may, subject to the provisions of paragraph ( b ) of
article 14 of this Ordinance, cause the stock of the deceased
stockholder to be transferred into the name of any person who
proves to his satisfaction that he is lawfully entitled to the stock on
the death of the stockholder.
Registration of 
transfers of stock.
14. No person shall be registered as the transferee of any
registered stock for the purposes of this Ordinance unless - 
    LOCAL LOANS (REGISTERED STOCK AND SECURITIES)    ġ CAP. 161.         5
( a ) in the case of a transfer under sub-article (1) of article
13 of this Ordinance he has surrendered to the
Accountant General the stock certificate and the
instrument of transfer relating to that stock and has
paid the prescribed fee; or
( b ) in the case of a transfer under sub-article (3) of article
13 of this Ordinance he has surrendered to the
Accountant General the stock certificate relating to the
stock of the deceased stockholder and paid the
prescribed fee.
Closing of register.
immediately preceding each date upon which interest on that stock
falls due and no transfer of that stock shall be registered during that
period.
Register to be 
conclusive 
evidence of facts 
entered therein.
16. The entries in the register kept under the provisions of this
Ordinance shall be conclusive evidence of the facts, matters,
particulars and transactions to which those entries relate:
 Provided that, notwithstanding the provisions of any other law, a
copy of any entry in the register certified under the hand of the
Accountant General to be a true copy of the original entry shall be
receivable in evidence in any judicial proceeding and shall, until
the contrary is proved, be deemed to be evidence of the contents of
the entry in the register.
PART IV
DEBENTURES 
Debentures. 
Amended by: 
X.1963.2.
17. (1) Debentures shall be issued either as registered
debentures or as debentures payable to bearer.
(2) Every debenture shall be signed by the Accountant General
for and on behalf of the Government and shall, when issued, bind
the Government to pay the principal sum and the interest thereon in
accordance with the provisions of this Ordinance, at the rate and on
the dates specified in the directions by the Minister responsible for
finance under article 6 of this Ordinance or in pursuance of an
option to redeem such debenture reserved in such directions.
(3) Debentures shall be issued in such form and in such
denominations as the Minister responsible for finance may direct.
Interest coupons.
the payment of interest which falls due thereunder:
  Provided that the number of coupons attached to a debenture on
the date of its issue to any person may cover a period shorter than
that of the currency of the debenture if, in the opinion of the
Accountant General, it is inconvenient or inexpedient to attach to
the debenture coupons sufficient in number to cover the entirety of
the period of the currency of the debenture.
  6        CAP. 161. ħ       LOCAL LOANS (REGISTERED STOCK AND SECURITIES)
(2) If the number of coupons attached to any debenture on the
date of its issue to any person is insufficient to cover all payments
of interest due on that debenture after that date, the holder of that
debenture shall be entitled to a renewal thereof at such time and in
such manner and circumstances as may be prescribed.
Registered 
debentures.
19. (1) Every registered debenture shall, before being issued,
be registered by the Accountant General in a register to be kept for
that purpose and the name and address of the holder of each
registered debenture and all transfers of registered debentures shall
be noted on that register.
(2) Registered debentures shall be transferable by instrument in
writing in such form and subject to such conditions as may be
prescribed.
Bearer debentures.   20. (1) Every debenture payable to bearer shall, before being
issued, be registered by the Accountant General in a register to be
kept for that purpose.
(2) Redem ption moneys and interest moneys payable on any
bearer debenture issued under the provisions of this Ordinance
shall be payable only to a person who at the time that such moneys
are payable is, or at the time when he subscribed for or otherwise
acquired such debenture was, ordinarily resident in Malta.
(3) Every bearer debenture and coupon, and the right to receive
the principal amount and interest represented thereby, shall be
transferable by delivery.
PART V
PAYMENT OF INTEREST ON STOCK AND SECURITIES
Appropriation of 
revenue for 
payment of 
interest. 
Amended by: 
X. 1963.2.
21. So long as any interest is payable under this Ordinance in
respect of any stock or securities, the Minister responsible for
finance shall, in each half year ending with the date on which the
interest on such stock or securities falls due, appropriate out of the
general revenue and assets of the Government of Malta a sum
sufficient to meet all interest payable on that date and shall
authorize the Accountant General to pay such interest out of the
sum so appropriated.
Payment of 
interest. 
Amended by: 
X. 1963.2.
22. (1) The interest due on any registered stock or securities
shall be payable half-yearly on the dates specified by the directions
of the Minister responsible for finance under article 6 of this
Ordinance.
(2) Where any amount has become payable on any date as
interest due on any registered stock or securities, no interest on that
amount shall, after that date, be paid or payable by the Government
to any person in any circumstances.
Cessation of 
liability to pay 
interest.
23. No person shall be entitled to claim interest on any
registered stock or securities in respect of any period which has
    LOCAL LOANS (REGISTERED STOCK AND SECURITIES)    ġ CAP. 161.         7
elapsed after the earliest date on which demand could lawfully have
been made for the payment of the principal amount due on such
stock or securities.
Payments.
Amended by:
IV.1999.3. 
24. All payments of interest and all payments of the principal
amount due on any registered stock or securities shall be made by
the Accountant General out of the Consolidated Fund without the
need of any further appropriation other than this Act.
PART VI 
SINKING FUNDS
Appropriation of 
revenue for sinking 
fund. 
Amended by: 
X.1963.2.
25. Within the period specified in the directions of the Minister
responsible for finance under article 6 of this Ordinance as the
period within which contributions to the sinking fund for any loan
shall commence, the Minister responsible for finance shall
appropriate out of the general revenue and assets of the
Government of Malta a sum determined in accordance with the rate
specified in those directions as the contribution to the sinking fund
established for the purpose of redeeming that loan and shall
thereafter make a like appropriation in each half year ending with
the date specified in those directions for the payment of the half-
yearly interest on any stock or securities issued in respect of that
loan.
Separate sinking 
fund for each loan.
26. A separate sinking fund shall be established for each loan
raised under this Ordinance.
Investment of 
sinking fund. 
Amended by: 
X.1963.2. 
Substituted by: 
XXXIV.1972.3.
27. (1) All moneys appropriated under article 25 of this
Ordinance as contributions to the sinking fund established for any
loan shall be placed at interest or invested in such stocks or
securities or in such other investments or classes of investments,
including registered stock or debentures issued under the
provisions of this Ordinance, as the Minister responsible for
finance may from time to time direct.
(2) The dividends, interest, bonus and other profit of any
investment of any part of any sinking fund shall be placed at
interest or invested as directed by the Minister responsible for
finance so as to form part of that sinking fund in like manner as
moneys appropriated under article 25 of this Ordinance as
contributions to the sinking fund.
Cessation of 
contributions to 
sinking fund. 
Amended by:
X.1963.2; 
XXXIV.1972.4.
28. Notwithstanding anything to the contrary contained in this
Ordinance, if at any time the Accountant General is satisfied that
the sinking fund of any loan raised under the provisions of this
Ordinance will be sufficient with further accumulations of interest,
but without further payments of contributions, to enable the loan to
be redeemed at the time fixed for its redemption, he shall inform
the Minister responsible for finance accordingly and the Minister
responsible for finance is hereby authorized in such event to
suspend further payments of half-yearly contributions to that
sinking fund: 
  8        CAP. 161. ħ       LOCAL LOANS (REGISTERED STOCK AND SECURITIES)
  Provided, however, that the contributions to that sinking fund
shall be recommenced if the Accountant General at any time
thereafter informs the Minister responsible for finance that he is no
longer satisfied that the sinking fund with further accumulations of
interest will be sufficient for the redemption of that loan.
Expenses to be 
paid out of sinking 
fund.
29. There shall be paid out of the sinking fund all expenses
specifically incurred in, or incidental to, the investment and
management of that fund and the repayment of the loan for which
that fund was established.
Deficiency in 
sinking fund to be 
a charge upon 
revenue.
Amended by:
IV. 1999.4.
30. Where no sinking fund is established or in the event of the
sinking fund established for any loan under this Ordinance being
found, at the time fixed for the repayment of that loan, to be
insufficient for such redemption, the loan shall be repaid or the
deficiency shall be made good out of the general revenue and assets
of the Government of Malta without any further appropriation other
than this Ordinance.
PART VII 
CONVERSION OF LOANS
Power of Minister 
to authorize 
conversion of loan 
generally. 
Amended by: 
X. 1963.2.
31. The Minister responsible for finance shall have and may
from time to time exercise the following powers and authorities or
any of them:
( a ) he may declare any stock or securities issued in Malta
under the provisions of this or any other law to be
convertible into registered stock or other securities to
be issued under the provisions of this Ordinance;
Creation and issue 
of stock or 
securities 
necessary for 
conversion.
( b ) he may authorize the creation and issue under this
Ordinance of such an amount of registered stock or
securities as may be necessary for the conversion of
the stock or securities in respect of which a declaration
has been made under paragraph ( a ) of this article;
Creation and issue 
of stock or 
securities to meet 
expenses of 
conversion.
( c ) he may authorize the creation and issue under this
Ordinance of such registered stock or securities as may
be necessary for the purpose of paying any expenses
incurred in the creation and issue of registered stock or
securities under this article;
New stock or 
securities may 
have all privileges 
of original stock or 
securities.
( d ) he may declare that all privileges, exemptions and
immunities attaching by virtue of any law in force in
Malta to any stock or securities shall attach to any new
registered stock or securities issued under this
Ordinance in conversion of such earlier stock or
securities.
Arrangements for 
conversion.
32. Any conversion authorized under article 31 of this
Ordinance may be effected either by arrangement with the holders
of existing stock or securities, or by purchase thereof out of moneys
raised by the sale of stock or securities, or partly in one way and
    LOCAL LOANS (REGISTERED STOCK AND SECURITIES)    ġ CAP. 161.         9
partly in the other.
PART VIII
ISSUE OF DUPLICATES AND RENEWALS OF STOCK CERTIFICATES 
AND SECURITIES AND EXCHANGE AND CONSOLIDATION
Issue of duplicates 
and renewals.
33. (1) The Accountant General may issue duplicate stock
certificates and duplicate securities in such circumstances as may
be prescribed.
(2) The Accountant General may issue renewals of stock
certificates and securities in such circumstances as may be
prescribed. 
Right of 
Accountant 
General to compel 
renewal of 
securities.
34. The Accountant General may, in such circumstances as
may be prescribed -
( a ) issue a notice to the holder of any security directing
him to apply for a renewal of that security; and
( b ) withhold payment of the interest or principal amount
due in respect of that security until the application for
renewal has been made and determined.
Exchange of 
registered stock 
and securities.
35. On application made by any person claiming to be the
holder of any registered stock or securities issued under this
Ordinance, the Accountant General may, if he is satisfied that the
applicant is the lawful holder of such stock or securities, and on
payment of the prescribed fee, exchange stock for securities or
securities for stock or securities of one kind for securities of the
other kind:
  Provided that -
( a ) all stock and securities so given or taken in exchange
shall have been issued in respect of the same loan; and 
( b ) the nominal value of the stock or securities given by
the Accountant General in exchange shall be the same
as the nominal value of the stock or securities taken by
him in exchange.
Consolidation and 
subdivision of 
stock and 
securities.
36. Subject to such conditions as may be prescribed the
Accountant General may -
( a ) on the application of a person claiming to be entitled
to any stock or securities, and
( b ) on being satisfied of the justice of the claim of such
applicant, and
( c ) on surrender of the stock certificate relating to such
stock or of such securities receipted in the prescribed
manner, and
( d ) on payment of the prescribed fee,
consolidate or subdivide such stock or securities and issue to the
  10        CAP. 161. ħ       LOCAL LOANS (REGISTERED STOCK AND SECURITIES)
applicant one or more new stock certificates or securities as may be
required.
Indemnity bonds. 37. Where application is made to the Accountant General
under this Ordinance for the issue of a duplicate stock certificate or
a duplicate security or for the exchange, renewal, consolidation or
subdivision of any stock or securities, the Accountant General may
require the applicant, as a condition precedent to the grant of the
application, to execute a bond, in such form and subject to such
security as the Accountant General may direct, undertaking to
indemnify the Government against the claims of all persons
claiming under the original stock certificate or security or under the
stock or securities so exchanged, renewed, consolidated or
subdivided, as the case may be.
Immediate 
discharge in certain 
cases.
38. On payment by or on behalf of the Government to the
holder of a debenture of the amount expressed therein on or after
the date when it becomes due or on the renewal of a debenture
under article 33 of this Ordinance, or on the exchange of a
debenture under article 35 of this Ordinance, or on the
consolidation or subdivision of a debenture under article 36 of this
Ordinance, the Government shall be discharged in the same way
and to the same extent as if such debenture was a promissory note
payable to bearer.
Discharge in other 
cases.
39. Save as otherwise provided in this Ordinance the liability
of the Government shall -
( a ) in respect of any registered stock or security redeemed
on or after the date on which payment of the principal
amount becomes due, be discharged after the lapse of
six years from that date;
( b ) in respect of any security in place of which a duplicate
is issued under article 33 of this Ordinance, be
discharged after the lapse of six years from the date of
the issue of such duplicate or from the date of the last
payment of interest on such security, whichever date is
the later;
( c ) in respect of a security for which a renewed security is
issued under article 33 of this Ordinance or in respect
of stock or securities in place of which new stock or
securities are issued upon an exchange under article 35
of this Ordinance or upon a consolidation or
subdivision under article 36 of this Ordinance, be
discharged after the lapse of six years from the date of
the issue of the renewed security or of the new stock or
securities, as the case may be.
    LOCAL LOANS (REGISTERED STOCK AND SECURITIES)    ġ CAP. 161.         11
PART IX
MISCELLANEOUS 
Signature of 
Accountant 
General may be 
printed on stock or 
securities.
40. The signature of the Accountant General may be printed,
stamped, engraved, or impressed by any mechanical process on any
stock certificate or debenture, and a signature so printed, stamped,
engraved or impressed shall be as valid as if it had been inscribed
in the proper handwriting of the Accountant General.
Exemption from 
duty on 
documents.
41. All documents or instruments made or used under the
provisions of this Ordinance shall be in such form as may be
prescribed and, notwithstanding the provisions of any other
Ordinance, shall be free from duty on documents.
Inspection of 
register and 
documents.
Amended by:
XVI.1997.8.
42. (1) No person shall be entitled to inspect, or to receive
information derived from, any registered stock or security in the
possession of the Government or any register, book or other
document kept or maintained by or on behalf of the Government in
relation to registered stock or securities, save on payment of such
fee and save in such circumstances and on such terms and
conditions as may be prescribed.
(2) Nothing in this article shall apply to the Auditor General or
to the Commissioner of Inland Revenue.
Regulations.  
Amended by: 
X.1963.2.
43. (1) The Minister responsible for finance may make
regulations for the purpose of giving effect to the provisions of this
Ordinance.
(2) In particular and without prejudice to the generality of the
foregoing power, such regulations may provide for all or any of the
following matters:
( a ) the manner in which payment of interest in respect of
stock or securities is to be made and acknowledged;
( b ) the issue of duplicate stock certificates and duplicate
securities;
( c ) the renewal of stock certificates and securities;
( d ) the manner of payment of interest to joint holders of
stock or securities;
( e ) the circumstances in which alterations may be made in
the register;
( f ) the payment of principal or interest and transfer of
stock and securities in the case of persons under a
legal disability;
( g ) the disposal of unclaimed interest;
( h ) the conditions subject to which stock or securities may
be exchanged, consolidated or subdivided;
( i ) the fees to be paid in respect of anything to be issued
or done under the provisions of this Ordinance;
( j ) all matters required by this Ordinance to be prescribed
and all matters incidental to or connected with the
matters hereinbefore enumerated.
  12        CAP. 161. ħ       LOCAL LOANS (REGISTERED STOCK AND SECURITIES)
Non-applicability 
of certain articles 
of this Ordinance. 
Added by: 
XVIII. 1991.2. 
Cap. 345.
44. Notwithstanding anything contained in this Ordinance, the
provisions concerning any registration and the issuing of stock
certificates shall not apply in the case of the issues of Government
registered stock and securities which may be traded on the Malta
Stock Exchange under the Malta Stock Exchange Act.
