القانون التجاري (الفصل 13)، مالطة

PART I

OF TRADE IN GENERAL

Title I

(a)

any purchase of movable effects for the object of reselling or letting them, whether in their natural state or
after being worked or manufactured; any sale or lease
of movable effects, in their natural state or after being
worked or manufactured, when the purchase thereof
has been made with the object of re-selling or letting
such effects;

(b)

any banking transaction;

(c)

any transaction relating to bills of exchange;

(d)

any time-bargain in securities;

(e)

any transaction relating to commercial partnerships or
to shares in such partnerships;

(f)

any transaction relating to vessels and navigation;

(g)

any undertaking relating to supplies, manufacture,
construction, carriage, insurance, deposits, public
entertainment and advertising;

Added by:

XIII. 1946.3.

received or

Sub-title IA

26A. For the purposes of this Sub-Title

-is established for the specific purpose of meeting

needs in the general interest, not being of an industrial

or commercial nature,

-has legal personality, and

-is financed for the most part by the State, or Local Councils or other public bodies, or is subject to management supervision by those bodies, or has an administrative, managerial or supervisory board more than half of whose members are appointed by the State, Local Councils, or other public bodies;

Cap. 204.

Scope of this Sub-Title.

Added by:

L.N. 233 of 2005.

(a)

debts that are subject to insolvency proceedings instituted against the debtor;

(b)

contracts that have been concluded prior to the 1st May, 2004;

(c)

interest payments of less than four euro and sixty-six cents (4.66).

Sub-title II

OF PUBLICATION OF MARRIAGE CONTRACTS

(a)

the date of the contract or deed and the name of the notary receiving such contract or deed;

(b)

the name of the party described as a trader;

(c)

the amount of the dowry and of the dower.

Sale of moveables.

Added by:

L.N. 233 of 2005.

Exclusions.

Added by:

L.N.

233 of 2005. Amended by:

L.N.

407 of 2007.

Publication of marriage contracts.

Amended by:XXXVII.1939.3; XXIV.1995.362.

Index of notes to be kept byregistrar.

Added by:XXXVII.1939.4. Amended by:XXIV.1995.362.

Sub-title III

OF LIMITS OF COMPETITION

and services, which may include price;

(d)

it does not discredit or denigrate the trade marks, trade names, other distinguishing marks, goods, services, activities, or circumstances of a competitor;

(e)

for products with designation of origin, it relates in each case to products with the same designation;

(f)

it does not take unfair advantage of the reputation of a trade mark, trade name or other distinguishing marks of a competitor or of the designation of origin of competing products;

(g)

it does not present goods or services as imitations or replicas of goods or services bearing a protected trade mark or trade name;

(h)

it does not create confusion among traders, between the advertiser and a competitor or between the advertiser’s trade marks, trade names, other distinguishing marks, goods or services and those of a competitor.

Misleadingadvertising.

Added by:

II. 2008.58.

Title III

OF THE REGISTER OF TRADERS

(a)

he is actually engaged in trade or in any branch of trade;

(b)

he is discharged, if he had previously been adjudged bankrupt;

(c)

he has not been convicted of any of the crimes affecting public trust or against property provided for in the Criminal Code;

(d)

he produces a certificate from the Council of the Chamber of Commerce, Enterprise and Industry as to the existence in his respect of the conditions mentioned in paragraphs (a), (b) and (c).

Provisions of this Title substituted by Act XXX of 1927.

Register of traders.

Amended by:VIII.1990.3; XXIV.1995.362.

Qualifications for registration.

Amended by:

XIII. 2008.2.

Cap. 9.

Procedure for registration.

Amended by:
XVI.1982.2.

Cap. 168.

registration was issued.

Title IV

OF PERSONS AUXILIARY TO TRADERS

Sub-title I

OF AGENCY IN GENERAL

Default of registration not todebar person from engaging in trade.

Amended by:

L.N. 46 of 1965; LVIII.1974.68 ; XIII.1983.5; XXIV.1995.360;

XXII. 2005.79;

L.N. 407 of 2007.

Parts of register for public brokers and commercial agents.

Provisions of this Title substituted by Act XXX of 1927.

Law governingmercantile agency.

Amended by:XLIX.1981.6.

Cap.16.

Cap.452.

Effects of acts done by agent within scope of his authority.

Rules regarding the validity and effectsof acts done by agent.

Form of agent’s authority.

Agent’s powers.

Sub-title II

OF MANAGERS

Sub-title III

OF COMMERCIAL TRAVELLERS AND SALESMEN

Liability ofprincipal.

Loan made to manager.

Duties of manager.

Manager may not transact business on his own or other party’s behalf.

Manager may sue or be sued.

Liability of manager.

Amended by:XVI.1982.2.

Determination of manager’sauthority.

travellers.

Sub-title IV

OF COMMERCIAL AGENTS

(i)

a person who in his capacity as an officer of a company or association is empowered to enter into commitments binding the company or association;

(ii)

a partner who is lawfully authorised to enter into commitments binding on his partners;

(iii) a person acting as an insolvency practitioner in Malta or in an equivalent position in any other jurisdiction;

Definition of commercial agent, etc.

Added by:

IX. 2003.3. Amended by:

XIII. 2008.2.

Commercial agents.

Amended by:

XXXVII. 1939.8;

L.N. 46 of 1965;

IX.

1982.2. Substituted by:

IX.

2003.3;

XXIII. 2009.18.

Cap. 386.

(2) In particular, a commercial agent shall

(a)

provide his commercial agent with the necessary documentation relating to the goods concerned;

(b)

obtain for his commercial agent the information necessary for the performance of the agency contract, and in particular notify his commercial agent within a reasonable period where he anticipates that the volume of commercial transactions will be significantly lower than that which the commercial agent could normally have expected.

(a)

where the transaction has been concluded as a result of his direct or indirect intervention; or

(b)

where the transaction is concluded with a third party whom he has previously acquired as a customer for transactions of the same kind.

Duties of a principal to his commercial agent.

Substituted by:

IX. 2003.3.

Prohibition on derogation fromarticles 74 and 75 and consequence of breach.

Substituted by:

IX. 2003.3.

Form and amount of remuneration in absence of agreement.

Substituted by:

IX. 2003.3.

Entitlement to commission on transactions concluded during agency contract.

Added by:

IX. 2003.3.

(a)

one month for in first year of the contract;

(b)

two months after the commencement of the second year but before the commencement of the third year;

(c)

three months after the commencement of the third year;

Periodic supply ofinformation as to commission due and right ofinspection ofprincipal’s books.

Added by:

IX. 2003.3.

Right to signedwritten statement of terms of agency contract.

Substituted by:

IX. 2003.3.

Conversion of agency contractafter expiry offixed period.

Added by:

IX. 2003.3.

Minimum periods of notice for termination of agency contract.

Added by:

IX. 2003.3.

(a)

the principal has terminated the agency contract because of default attributable to the commercial agent which would justify immediate termination of the agency contract in accordance with article 78C; or

(b)

the commercial agent has himself terminated the agency contract, unless such termination is justified

(i)

by circumstances attributable to fault of the principal, or

(ii)

on grounds of the age, infirmity or illness of the commercial agent in consequence of which he cannot reasonably be required to continue his activities; or

(c)

the commercial agent, with the agreement of his principal, assigns his rights and duties under the agency contract to another person.

(a)

it is concluded in writing; and

(b)

it relates to the geographical area or the group of customers and the geographical area entrusted to the commercial agent and to the kind of goods covered by his agency under the contract.

Grounds for excluding payment of indemnity orcompensation under article 78D.

Added by:

IX. 2003.3.

Prohibition on derogation fromarticles 78D and 78E.

Added by:

IX. 2003.3.

Restraint of trade clauses.

Added by:

IX. 2003.3.

Added by:

IX. 2003.3.

(2) Any such notice, statement or document may

Sub-title V

OF BROKERS

Punishment for unlawful exercise of office of broker.

Amended by:VIII.1990.3.

Books to be kept by brokers.

Duties of brokers.

Delivery of copies of entries.

Production of books.

Custody of books.

Amended by:XXIV.1995.362.

Exceptions.

Amended by:

XXXVII. 1939.11.

Broker cannot transact business for his own account, etc.

between them for the purpose of brokerage only.

Sub-title VI

OF COMMISSION MERCHANTS

Definition of commission merchant.

Commission merchant not bound to disclose principal’s name.

Action by third party against principal or vice-versa.

Powers of commission merchant.

Right of commission merchant in buyingor selling stocks, etc.

Liability ofcommission merchant.

Prevailing usages.

Acceptance of agency.

Relinquishment of agency.

Lien or privilege in favour of commission merchant.

Title V

OF COMMERCIAL OBLIGATIONS

Title VI

Offer by means of advertisements.

Where partiesagree to reduceverbal agreementto writing.

Co-debtors jointlyand severally liable.

Payment.

Implied resolutive condition.

Amended by:XXII.1976.4.

Cap. 16.

Litigious rightsarising fromcommercial transactions. Cap. 16.

Provisions of this Title substituted by Act XXX of 1927. Amended by:

XIII. 2008.2.

Chamber of Commerce, Enterprise and Industry.

Amended by:

XIII. 2008.4.

Title VII

Sub-title I

OF BILLS OF EXCHANGE

OF THE FORM OF A BILL OF EXCHANGE

payable at residence of third

party.

OF THE DUTIES OF THE DRAWER

been put in funds.

funds.

OF ENDORSEMENT

OF ACCEPTANCE

Rights of endorsee where endorsement is made after protest for nonpayment.

Rights of endorsee against drawer.

Where endorser specifies time for presentment of bill.

Rights of holderwhere bill is not endorsed to him.

Form of acceptance.

When acceptance is to be dated.

Acceptance cannotbe conditional, but may be partial.

When bill is to be accepted.

Obligations of acceptor.

right to prove the contrary.

OF JOINT AND SEVERAL LIABILITY

Preference to be given to party instructed to intervene.

Holder of bill mayaccept for honour.

Acceptance forhonour how made.

Duties of acceptor for honour.

Where acceptor for honour does not state for whom he intervenes.

Rights of holder in case of acceptance for honour.

Bill accepted for honour to be presented for payment to original drawee.

Parties to a bill jointly andseverally liable.

OF SURETY PAR AVAL

OF MATURITY AND PAYMENT

(a)at sight;

(b)

at a certain time or on a certain day;

(c)

at a certain time after sight;

(d)

at a certain time after date;

(e)

at usance.

fifteenth day of that month.

sight, or at a certain time after date, is payable

Gregorian calendar.

Bill payable at usance.

Where no time is expressed, bill is payable at sight.

When day ofmaturity is a Sunday, etc.

Amended by:V.1904.8.

Where drawee is adjudged bankrupt.

In what money billis payable.

Payer not bound to verify genuineness of endorsements.

Anticipated payment.

Payment atmaturity without opposition operatesas valid discharge.

Holder cannot be compelled toreceive anticipated payment.

Payment of part ofa bill drawn in sets.

Where accepted part is not taken back by payer.

OF PAYMENT FOR HONOUR OR BY INTERVENTION

Loss of accepted bill.

Where holder is unable to presentany part of the bill.

Extinguishment ofobligation arisingfrom security.

When deposit ofamount of lost bill may be demanded.

Amended by:

L.N. 148 of 1975; XXIV.1995.362.

Deed of protest in case of a lost bill.

Liability ofimmediate endorser to holder endorsee of lost bill.

Owner of lost bill liable for expenses.

Liability fordamages in case ofrefusal to givesecond, third, or other part.

Payment for honour.

How recorded.

Rights and dutiesof payer forhonour.

damages and interest.

Certain bills need not be presented for acceptance.

Where drawer or endorsers give different directions.

Presentment for payment to bemade at maturity.

Place at which presentment, protest, etc., are to be made.

Acceptance notdemandable on Sundays, etc.

Amended by:V.1904.9.

When protest is tobe made.

Protest for nonacceptance, etc., does not excuse holder from making protest for non-payment.

Holder to demand acceptance from party named in the bill in case of refusal of drawee to accept same.

(2)

Every endorser on receiving such notice shall, without delay, communicate it to the endorser immediately preceding him.

(3)

The notice referred to in this article shall be accompanied by the protest.

1. Where a party has endorsed a bill to another party without stating his address, notice of non-acceptance or non-payment shall be given to the endorser next preceding him.
1. It shall not be competent to the holder of a bill, in case of non-payment, to exercise his right of recourse against the drawer or the endorsers
1. if the bill was not presented for acceptance, where necessary, or for payment, to the drawee or the parties mentioned in articles 228 and 229;
2. if the holder has refused acceptance or payment by a party intervening for the honour of the drawer or of any of the endorsers.
2. Nor shall it be competent to the holder to exercise his right of recourse against the endorsers or the drawer who has supplied funds to the drawee or to the parties mentioned in articles 228 and 229, if he has failed to comply with the provisions of articles 226, 230 and 233.
3. The holder of a bill protested for non-payment may exercise his right of recourse against all the obligors jointly, or against only one or some of them, without forfeiting his right of

recourse against the others not sued on the bill, and he shall not be bound to follow the order of the endorsements.

238. The right of recourse against endorsers and drawers residing in Malta, in the case of bills, protested for non-payment, drawn in Malta and payable elsewhere, shall be exercised within

Provided that such times shall be doubled in time of maritime war.

239. The times specified in the last preceding article shall commence to run

1. After the expiration of the times specified in the last two preceding articles, the holder and the endorsers of the bill shall lose their right of recourse.
2. (1) In case of bankruptcy of one or more of the parties liable on a protested bill, the holder thereof may put forward his claim for the satisfaction of the whole debt against the estate of each of the bankrupts.

(2) Where a dividend is received from the estate of one of the bankrupts, the parties liable on the bill, who are not bankrupts, as well as the estates of the other bankrupts, shall be only discharged to the extent of the dividend so received.

242. (1) Nevertheless, where the holder of a bill accepts a voluntary arrangement with the drawer or the acceptor, he shall lose his right of recourse against all the endorsers.

(2)

Where the arrangement is made with one of the endorsers, the holder loses his right of recourse against all the subsequent endorsers, but preserves his rights against the acceptor. He preserves his rights also against the prior endorsers and the drawer, unless such endorsers or drawer prove that they have been prejudiced by such arrangement and provided the holder has expressly reserved his rights against them.

(3)

Where the arrangement is made with the drawer, the acceptor, if he has not been put in funds, shall be entirely discharged.

(4)

Finally, where the arrangement is voluntarily made with the acceptor, and such acceptor has been put in funds, the holder loses

When right ofrecourse revives.

Payer entitled to have bill delivered up to him.

Acceptance and endorsements operative even if signature of draweris forged.

Where bill contains forged acceptance or endorsement.

Protest to be drawn up by a notarypublic.

Form of protest.

Ineffectual inquiries to benoted.

1. The right of recourse shall revive in favour of the holder against the drawer or endorser who, after the expiration of the times prescribed for the protest, the notice, and the exercise of the aforesaid right, has received on account, or by way of compensation, or in any other manner, the funds assigned for the payment of the bill.
2. Any party liable on a bill of exchange shall, on paying the amount thereof, together with the interest and incidental expenses, be entitled to have the bill, duly discharged, delivered up to him.
3. The acceptance and the endorsements, if genuine, shall continue to be effectual, even if the signature of the drawer is forged or fraudulently altered.
4. If a bill contains a forged acceptance or endorsement, or an acceptance or endorsement fraudulently altered, all the endorsers and the drawer, whose signatures are genuine, shall continue to be liable on such bill.

1. Protests for non-acceptance or non-payment shall be drawn up by a notary public, who shall go to the place of business or residence of the party bound to accept or to pay, and request him to accept the bill or to pay the amount thereof.
1. (1) The act of protest must contain a verbatim copy of the bill, of the acceptance, if the bill had been already accepted, of the endorsements, and of the instructions given therein, and must specify
1. the name of the person in whose favour the protest is made;
2. the demand to accept or to pay made to the party against whom the protest is made;
3. the fact whether the party bound to accept or to pay was present or absent;
4. the reason of the refusal to accept or to pay;
5. the date on which the demand was made or unsuccessfully attempted.

(2) In case of acceptance or payment for honour, the protest shall specify by whom, for whose honour, and in what manner the bill has been accepted or paid.

249. Where the notary has not been able to find the party bound to accept or to pay, or to ascertain whether such party has any place of business, or to discover his place of residence, he shall expressly state in the protest that his inquiries have been unsuccessful.

1. Where the demand for acceptance or payment is to be made to two or more persons, it shall be sufficient to draw up a single act of protest with respect to such demand.
2. No other act by the holder of the bill can supply the want of the act of protest, saving the cases provided for in articles 199, 200, 201 and 202 with regard to lost bills.

252. Re-exchange is effected by means of a re-draft.

1. A re-draft is a fresh bill drawn by the holder in order to recover from the drawer or from one of the endorsers the amount due to him as holder of the protested bill, in accordance with the provisions of article 256.
2. Re-exchange is regulated according to the course of exchange of the place in which the re-draft is drawn on the place where the reimbursement is to be made.
3. A re-draft must be accompanied by an account termed "account of re-draft".

256. (1) Such account shall comprise

(2) The said account shall be accompanied by the protested bill and the protest.

1. Where there is no course of exchange between the place at which, and the place on which a re-draft is drawn, the re-exchange shall be reckoned according to the course of exchange on the place nearest to that on which the re-draft is drawn.
2. Interest on the sum specified in the bill protested for nonpayment, on the expenses of protest, and on all other lawful expenses, shall be recoverable as from the day of the protest.
3. No payment may be claimed on a re-draft unless the account of re-draft be accompanied by the certificate prescribed in article 256.

OF PROMISSORY NOTES, AND DRAFTS OR CHEQUES ON
BANKERS OR CASHIERS

Provisions relating to bills of exchangeapplicable to promissory notes.

Contents of promissory note.

Drafts or cheques.

Consequence ofdelay in presenting cheque.

Definition of account current.

Ownership of remittances.

Items of debit and credit.

1. The provisions applicable to bills of exchange, and relating to endorsement, joint and several liability, aval, time of maturity, payment, payment for honour, protest, duties and rights of the holder, and re-exchange, shall apply to promissory notes.
2. (1) A promissory note shall state the date, the amount to be paid, the person in whose favour or to whose order such note is signed, the time when payment is due, and the value supplied in cash, goods, in account or in any other manner.

262. (1) Drafts or cheques on bankers or cashiers shall be dated, and shall specify the sum to be paid, and shall be made payable to a person therein named, or to his order, or to bearer.

263. Where the holder of a cheque fails to cash it within three days from the date thereof, and, after such time, the banker or cashier refuses to pay, the holder who has received the cheque from a third party has no right of recourse against such party, nor against the maker of the cheque, if the latter proves that he had in the hands of the banker or cashier sufficient funds to meet the cheque, and that such funds did not cease to be available through his fault.

OF THE CONTRACT OF ACCOUNT CURRENT

1. Account current is a contract whereby two persons covenant that their mutual remittances be entered in an account as items of debit and credit, subject to the obligation of the party against whom a balance is found at the time the account is wound up to pay such balance.
2. Every remittance made in pursuance of such contract shall be deemed to pass in absolute ownership from the remittor to the remittee.
3. The items of debit and credit shall be deemed to be two indivisible amounts:

Provided that, in default of an agreement to the contrary, every right of action or defence relating to any act or contract giving rise to each separate remittance shall remain unimpaired; and, where any such act or contract is annulled, the items relating thereto shall be struck out of the account.

267. (1) The party who has included in the account a debt secured by a pledge or a hypothec shall be entitled to enforce such security for the payment of any balance which may be found for him.

(2) The provisions of this article shall also apply with regard to any claim passed to account current which is secured by the obligation of a surety or a co-debtor.

268. (1) All remittances of debts due, whatever their origin, shall be deemed to be passed to account current under the clause "subject to collection".

(2) If any such debt remains unpaid, the remittee may elect either to strike the item out of the account or to sue the remittor thereof for the payment of the debt.

1. Any creditor of any of the parties to an account current may sue out a garnishee order against his debtor in the hands of the other party to the account, provided that any such order shall be operative only when and if a final balance is found for such debtor on the winding up of the account.
2. (1) It shall not be lawful for the debtor, after the execution of the garnishee order referred to in the last preceding article, to impair his credit account by fresh remittances:

Provided that any remittance the title to which accrued in favour of the other party to the account current before the issue of the garnishee order, shall not be deemed to be a fresh remittance.

(2) The party to the account current in whose hands the attachment is made may, on being served with the garnishee order, demand the dissolution of the contract.

1. Save as otherwise agreed upon between the parties, an account current shall be wound up yearly.
2. The death, or the supervening disability, or the bankruptcy of a party to an account current shall not operate so as to determine the contract, unless the heir, or representative, or the other party to the account, as the case may be, elects to determine the contract by means of a judicial intimation to that effect within three months from the happening of any of the aforesaid events.

Contract of affreightment.

Different kinds of affreightment.

When contract is to be made in writing.

Rules as to time for loading anddischarging, in the absence of agreement.

Where loading or discharging is to be effected at different places.

Where person letting vesselmakes untrue statement as to tonnage thereof.

OF MARITIME TRADE AND OF NAVIGATION

1. A contract of affreightment is an agreement for the hire of a vessel.

274.

The affreightment can be

1. for the entire vessel or for a part thereof; for one or more voyages;
2. for the conveyance of goods in a general ship or á la cueillette that is, when the master receives goods separately from several persons and engages to ship and convey such goods.
2. Where the vessel, chartered whether in whole or in part, is of more than thirty tons tonnage, the contract is null unless made in writing.
1. If the period for loading and discharging is not fixed by agreement, the following rules shall be observed:
1. The period for loading or discharging in Malta is of eight days, if the vessel is of one hundred tons or less; of twelve days, if the vessel is of more than one hundred tons but not more than two hundred; of twenty days, if the vessel is of more than two hundred tons. Such period shall be reckoned from the time when the master declares that he is ready to load or discharge.
2. The days mentioned in this article are successive working days.
1. Outside Malta, the period for loading or discharging shall be determined according to the laws and usages of the place of loading or discharging and if the loading or discharging is to be effected in different places, the period shall be determined according to the laws and usages of the place where the last portion of the cargo is loaded or discharged.

1. Where a portion of the cargo is to be loaded or discharged in one place and the remainder in another, the time employed in proceeding from one place to another shall not be computed in the time limited for loading or discharging.
2. (1) If the person letting the vessel declares the vessel to be of a tonnage greater than her real tonnage, he shall be liable to a proportionate abatement of the freight, and shall be answerable for damages and interest to the freighter.

(2) The provisions of this article shall not apply, where the difference between the declared tonnage and the real tonnage does not exceed a fortieth part of the real tonnage.

1. The payment of the freight can be demanded immediately after the delivery of the cargo.
2. (1) Where the vessel is chartered by the month, the freight runs from the time of the commencement of the voyage.

(2) A voyage is deemed to be commenced as soon as the vessel has left the place where the loading commenced, or if the vessel sails in ballast, from the place where the ballast was shipped.

281. The buyer or any other successor is bound to abide by the terms of the contract of affreightment stipulated by the seller or any other prior possessor of the vessel.

OF THE RIGHTS AND DUTIES OF THE PERSON LETTING
THE VESSEL AND THE FREIGHTER

282. If the freighter has not shipped any portion of the cargo within the period fixed in the contract or determined by law, the person letting the vessel may, at his option, either -

283. If within the period aforesaid, the freighter has shipped only a portion of the cargo, the person letting the vessel may, at his option, either -

Contribution to general average where freighterfails to ship cargo, or ships only a portion thereof.

Where freighter abandons contract.

Person letting vessel may take in other goods in the place of those not shipped byfreighter.

When freighter ships more than agreed upon.

Liability of person letting the vesselfor delay.

Time for sailing where affreightment is for conveyance ofgoods in a general ship.

Right of shippersin contract for conveyance ofgoods in a general ship.

Where vessel is arrested through fault of freighter, etc.

1. If during the voyage the vessel which has sailed without a cargo, or with a portion only of the cargo, sustains a loss which would have given rise to a general average in case the vessel had taken on board a full cargo, the person letting the vessel may claim from the freighter a contribution reckoned on two-thirds of the goods which the latter failed to ship.
2. If the freighter has not shipped any portion of the cargo, and abandons the contract before the commencement of the period of demurrage, he must pay to the person letting the vessel half the freight.
3. (1) Where the person letting the vessel is entitled to sail without a cargo, or with a portion only of the cargo, he may, for the purpose of securing the freight and the contribution to general average, take in other goods, even without the consent of the freighter.

(2) In any such case the freight for such other goods shall be accounted to the original freighter, who shall, moreover, be discharged from such contribution to general average as shall have been paid by such other goods.

1. Where the freighter ships more than was agreed upon, he shall pay freight on the excess at the rate stipulated for the quantity agreed upon.
2. If the vessel is not ready, and is not in a state to receive the goods at the stipulated time, the person letting the vessel shall be liable to pay damages and interest to the freighter.
3. Where the affreightment is for the conveyance of goods in a general ship, the master shall sail with the first favourable wind or on the first favourable opportunity after the expiration of the period during which it was agreed that the vessel would take in her lading, unless a further delay be agreed to by the shippers.
4. (1) If in a contract for the conveyance of goods in a general ship, the day for the sailing of the vessel is not fixed, it shall be lawful for each of the shippers to withdraw his own goods without payment of freight, on returning the bills of lading signed by the master, or giving security for such bills as may have already been forwarded, and on paying all the expenses for the loading and unloading of such goods.

(2) Nevertheless, where, in any such case, the vessel has already on board more than one-half of the cargo, the master shall sail with the first favourable wind or on the first favourable opportunity, if he is required to do so by means of a protest by the shippers representing the greater part of the cargo, and he shall so sail not later than eight days from the service of such protest; in such case no one of the shippers shall be allowed to withdraw his goods.

291. If a vessel is arrested at the time of departure, or during the voyage, or at the place of discharge, on account of the act or negligence of the freighter or any of the shippers, such freighter or shipper shall make good to the person letting the vessel and the other shippers all damages and interest.

1. The person letting the vessel shall be liable in damages and interest to the freighter, if, on account of the act or negligence of the former, the vessel is detained or delayed at the time of departure, or during the voyage, or at the place of discharge.
2. If, without the knowledge or concurrence of the person letting the vessel or of the master, the freighter or the shipper loads goods the importation or exportation of which is prohibited, or, by any other unlawful act during the time of loading or unloading, causes injury to the vessel or to other interested parties, he is bound to make good any damages, and, even though the goods are confiscated, to pay the full freight, and to contribute towards general average, if any.
3. (1) If the master is obliged to refit the vessel in the course of the voyage, the freighter or the shipper is bound to await the carrying out of such refitting, unless he elects to withdraw his goods, in which case he must pay the full freight and contribute towards general average, saving the provisions of article 324.

(2)

If the vessel is chartered by the month, the freight shall continue to run during the time of refitting, but if the vessel is chartered by the voyage, no increase of freight may be claimed.

(3)

If the vessel cannot be refitted, the master must charter another vessel or other vessels to carry the goods to the place of destination.

(4)

If the master is unable to charter such other vessel or vessels at the same place or at a place nearby, freight is due in proportion to the part of the voyage performed.

(5)

In the case mentioned in sub-article (4) of this article, the duty to provide for the conveyance of the goods shall devolve on the shippers severally, but the person letting the vessel shall be bound not only to inform them as to his situation, but also to take meanwhile all such steps as may be necessary for the preservation of the cargo.

1. The person letting the vessel loses his freight and is answerable for damages and interest to the freighter, if the latter proves that the vessel was unseaworthy when she sailed.
2. The freighter may in the course of the voyage withdraw the whole of the goods, or a portion thereof, provided no injury or delay be caused thereby to the other freighters, and provided he pays to the master the whole freight for the goods withdrawn, as well as any contribution to general average or other indemnity which may be due, according to circumstances, saving the provisions of article 324.
3. Where, in the course of the voyage, the cargo has by reason of any peril of the sea become incapable of being carried, it shall be lawful for the freighter to withdraw it on paying the freight in proportion to the voyage performed; but if the cargo has become so incapable by its own inherent vice, the freighter must, if he withdraws the cargo, pay full freight.

Freight on goods sold during voyage.

Freight in respect of jettisoned goods.

No freight due forgoods lost by shipwreck, etc.

Freight is due where goods are saved,

unless saved without cooperation of master.

Discharge of cargo.

When person letting vessel or master may discharge and deposit goods.

Master cannot detain goods onboard.

When master loses his remedy against the freighter or shipper.

1. The freight on goods which the master has been compelled to sell in the course of the voyage for refitting the vessel, or for buying sails, ropes, or other apparel, or provisions, shall be payable in full, if the vessel arrives in safety, or in proportion to the voyage performed, if the vessel is wrecked.
2. The freight in respect of goods jettisoned for the common safety shall be payable by contribution as a general average.
3. No freight is due for goods lost by shipwreck, stranding, or any other vis major, and the person letting the vessel is bound to refund the freight paid to him in advance.
4. (1) If the goods have been saved from shipwreck or other accident, freight is due to the person letting the vessel as far as the place of the accident.

(2) The entire freight is due to him if he carries the goods to their place of destination.

1. No freight is due for goods, forming part of the cargo, which may have been saved at sea or on the coast, without the cooperation of the master.
2. After the expiration of the period agreed upon in the contract, or fixed by law for unloading, the person letting the vessel or the master can compel the freighter or the consignee of the goods to proceed to the unloading of the vessel, and to pay the freight and average.
3. If, the lay days having elapsed, any dispute arises with regard to the unloading of the vessel, the person letting the vessel or the master may discharge the goods, and put them on deposit in the hands of a third party, without prejudice to his right over such goods.
4. (1) The person letting the vessel or the master cannot detain the goods on board the vessel on the plea of default of payment of the freight, the general average, and other charges.

(2)

Nevertheless, the person letting the vessel or the master can deposit the goods with a third party until the sum due to him is paid, and can, if such goods are perishable, demand that they be sold.

(3)

Where the general average cannot be immediately adjusted, it shall be lawful to demand that a judicial deposit be made of a sum to be fixed by the court.

306. Where the master unloads the goods without obtaining payment of the freight, average, and other charges, or without taking such precautions as are allowed to him by the laws in force at the place of discharge, he shall forfeit his right against the freighter or the shipper, if such freighter or shipper proves that he has duly settled the amount of such freight, average, and charges with the person receiving the goods, or that he cannot, owing to the bankruptcy of such person, recover back such amount.

1. If the consignee refuses to receive the goods, the person letting the vessel or the master may demand the sale of such quantity of the goods as may be required for the payment of the freight, average and other charges, saving the right of resort to the freighters or the shippers in case of insufficiency of the proceeds.
2. (1) The special lien or privilege which, under the provisions of paragraph (c) of article 2009 of the Civil Code, is competent to the person letting the vessel or the master for the payment of the freight, extends also to average contributions and other charges.

(2) Such lien or privilege, however, both in regard to the amount of freight, and to the average and other charges, ceases on the expiration of fifteen days from the day of the delivery of the goods, notwithstanding that such goods may have not yet passed into the hands of third parties.

1. In all cases where the freight is agreed upon by the number, measure, or weight of the goods to be carried, the person letting the vessel is entitled to demand that the goods be numbered, measured, or weighed at the time of their discharge.
2. In no case can the freighter or the shipper demand a reduction in the freight.
3. The shipper cannot abandon for the freight goods which have decreased in value or deteriorated whether by their own inherent vice or by any fortuitous event. Nevertheless, if casks of wine, oil, honey, or other liquids have so leaked as to be empty or almost empty, such casks may be abandoned for the freight.

OF THE DISSOLUTION OF CONTRACTS OF AFFREIGHTMENT

312. (1 A contract of affreightment is dissolved ipso jure, without any right of the parties to the contract to claim freight or indemnity, upon the happening, before the departure of the vessel, of any of the following circumstances:

(2) In every such case the freighter must bear the expenses of loading and discharging.

Breaking out of war.

Person letting vessel maintains unimpaired his right for demurrageand average.

If vessel is freighted for morethan one place of destination, and war breaks out before the completion of the voyages.

313. (1) A contract of affreightment can be dissolved upon the demand of either of the parties if, before the commencement of the voyage, a war breaks out by reason whereof the vessel or the cargo or both ceases or cease to be considered as neutral property.

(2)

If neither the vessel nor the cargo is free, the person letting the vessel and the freighter have no claim upon each other for compensation, but the expenses of loading and discharging shall be borne by the freighter.

(3)

If the cargo only is not free, the freighter must pay to the person letting the vessel all the expenses necessary for fitting out the vessel, for the wages and the maintenance of the crew up to the day on which the demand for the dissolution of the contract is made, or, if the goods be already on board, up to the day of unloading.

(4)

If the vessel only is not free, the expenses of loading and unloading shall be borne by the person letting the vessel.

1. In the cases mentioned in the last two preceding articles, the person letting the vessel maintains unimpaired his rights with regard to demurrage and to general average, if any.
2. If a vessel, freighted for more than one place of destination, after the completion of one voyage, happens to be in the port wherefrom she is to undertake another voyage, and a war breaks out before the commencement of such other voyage, the following rules shall be observed:

the vessel shall stay in port until the conclusion of peace, or until she can sail with convoy, or in any other safe manner, or until further instructions are transmitted to the master by the owners of the vessel and of the cargo,

where the vessel is laden, the master may deposit the goods in a warehouse or in any other place of safe custody, until the voyage can be continued or until other measures are adopted,

the wages of the seamen and the expenses for the maintenance of the crew, warehouse rent and any other expense occasioned by the delay shall be borne, by way of general average, by the freighter and the person letting the vessel,

where the vessel is not laden, two-thirds of the expenses shall be borne by the freighter;

the contract for the intended voyage shall be dissolved upon the demand of the person letting the vessel,

where the vessel is laden, the person letting her or the master shall pay the expenses for loading and unloading, and they can only claim freight in proportion to the voyages already performed, demurrage, and general average;

316. (1) Where a vessel is freighted to proceed in ballast to Where war breaks out before, or on

another port, there to be laden for a voyage, the contract shall be

dissolved if, when the vessel is on her way to, or has arrived at the at the place of place of loading, a war breaks out, which prevents the continuation loading. of the voyage; and no claim to compensation shall be competent to either party, if the restraint affects the vessel alone, or both the vessel and the cargo.

(2) If, on the contrary, the vessel is free, but not the cargo, the freighter shall pay half the stipulated freight.

317. If, whilst a vessel is on a voyage, trade with the country to Interdiction of trade.

which the vessel is proceeding is interdicted, and the vessel is obliged to return with the cargo, freight is due for the outward voyage only, even though the vessel may have been chartered "out and home".

318. (1) Where an embargo or any other reason of force Embargo. majeure causes a temporary suspension of the voyage of a vessel whether before the vessel’s departure or during the voyage, without any fault of the master, the owner, or the freighter, the contract shall continue to subsist, and neither party is liable for damages for delay.

(2)

Freight shall also be due during the detention of the vessel, if the vessel is chartered by the month; but no increase is due, if the vessel is chartered for the voyage.

(3)

The shipper can have his goods discharged during the detention at his own expense, on condition of re-loading them or of indemnifying the person letting the vessel or the master.

319. If the port to which the vessel is bound is blockaded, the Blockade. master must, in the absence of instructions to the contrary, proceed to such one of the neighbouring ports of the same State as he may be allowed to put into.

320. All the rules contained in this sub-title shall apply to the Conveyance in a general ship.

contract for the conveyance of merchandise in a general ship or á la cueillette.

Bill of lading.

How drawn and transferred.

Parts of bill of lading.

Goods cannot be withdrawn without the bills of lading.

Persons between whom bill of lading is binding.

When different parts of a bill of lading are atvariance.

Agents orconsignees to give receipt.

If passenger fails togo on board at appointed time.

1. The bill of lading shall be signed by the master, and given to the shipper, and a duplicate shall be signed by the shipper, and given to the master.
2. (1) The bill of lading may be drawn to order or to bearer or in favour of a party named therein.

(2) It may be transferred by endorsement even in blank.

1. The master shall give as many parts of a bill of lading as are asked for by the freighter or the shipper.
2. (1) Freighters or shippers cannot withdraw the goods, already shipped, without returning to the master the bills of lading received in respect of such goods.

(2) If one bill of lading or more than one shall have been forwarded, it shall not be competent to the freighters or the shippers to withdraw the aforesaid goods except upon giving sufficient security in respect of any consequences which may arise from the forwarding of such bill or bills, and under the obligation, in all cases, of paying the entire freight, the expenses for discharging the goods, and those occasioned by the displacement of the remainder of the cargo, saving the provisions of article 290 and any other provision of law.

1. A bill of lading is conclusive evidence between all persons concerned in the cargo, as well as between them and the insurers, saving any proof to the contrary.
2. If there is a variance between bills of lading of the same cargo, the one which is in the hands of the master shall be conclusive evidence if it is filled up by the shipper or his agent; and that presented by the shipper or by the consignee is conclusive evidence, if filled up by the master.
3. Every agent or consignee on receiving the goods specified in the bill of lading or in the contract of affreightment shall be bound to give the master a receipt for such goods, under penalty of paying all the expenses, damages, and interest, including those occasioned by the delay.

328. If the passenger fails to go on board, or, without the permission of the master, absents himself from the vessel at the time appointed for the departure thereof, the master shall be at liberty to sail, and may claim the entire amount of passage money.

1. A passenger cannot, without the consent of the master, transfer to a third party the right accruing to him from the contract.
2. (1) If the passenger dies before the commencement of the voyage, only half the passage money shall be due.

(2) Where in any such case the cost of provisions is included in the passage money agreed upon, such cost shall be deducted therefrom.

331. (1) If the vessel’s voyage be interrupted or suspended, whether before the departure or in the course of the voyage, by a vis major, or by any cause beyond the master’s control, the passenger and the master shall be released from their mutual obligations, and neither of them can claim compensation from the other.

(2) In the case, however, of the interruption of a voyage after the commencement thereof, the passengers shall pay passage money in proportion to the part of the voyage performed.

1. If in the case contemplated in article 294 a passenger is willing to await the refitting of the vessel, the supply of provisions during the delay shall be at the charge of the master, if he has undertaken to furnish provisions during the voyage.
2. Passengers shall obey the orders of the master in all matters concerning the preservation of order on board the vessel.
3. The master is neither bound, nor authorized, to put into a port, or to stop during the voyage, at the request or for the benefit of a passenger.
4. Passengers shall, in the absence of an agreement to the contrary, provide for their own maintenance; but the master is, when required, bound to supply to a passenger at a fair price such provisions as may be necessary.
5. If a passenger dies in the course of the voyage, the master shall provide for the custody of such effects of the deceased as are found on board.
6. The master shall, for the payment of the passage money and the cost of provisions, have a right of retention over the effects brought on board by a passenger, in addition to the same special privilege as is competent to the creditors mentioned in paragraph

(b) of article 2009 of the Civil Code.

Articles 338 to 360, both inclusive, repealed by: XXXVII. 1988.41.

Contracts of insurance to be made in writing.

One contract may contain several insurances.

Transfer by endorsement.

Things that may be insured.

When and for what period insurance can be made.

Duration of risks.

OF THE CONTRACT OF MARINE INSURANCE

361. (1) Contracts of insurance must be made in writing, under pain of nullity.

(2)

They may be made by a private writing, which is called a policy. No blank space shall be left in the policy.

(3)

There shall be stated in the contract the date of the day on which it is signed, and whether the contract was made before or after noon.

362. (1) The same contract may contain several insurances, whether by reason of the things insured, or of the rate of the premium, or of the several insurers.

(2)

Where by the same contract things, even of a different kind, shipped in the same vessel, are insured in favour of one person only, one insurance only is deemed to be made.

(3)

Where the insurers are two or more, and they do not sign the contract at the same time, each of them shall, before signing, state the day and hour of the affixing of his signature.

363.

The policy is transferable by endorsement.

1. (1) The insurance may be upon the hull of the vessel, whether laden or in ballast, fitted out or not fitted out, sailing alone or with others; her tackle and apparel; her equipment; her provisions; all that which may have been expended for the vessel up to the day of her departure; the sums lent on bottomry and the interest thereon; the cargo; the anticipated profits; the stipulated freight; and upon all other things capable of being estimated in money, and subject to the perils of navigation.

(2) An insurance of the vessel, without any other explanation, includes the hull, the tackle and apparel, and the equipment.

365. (1) An insurance may be made on the whole or on a part of the above-mentioned things, jointly or separately.

(2)

It may be made in time of peace or in time of war, before or during the voyage of the vessel.

(3)

It may be for a voyage "out and home", or only for one of the two; for a whole voyage or for a definite period; for a determinate voyage and for a definite period jointly; for all the voyages and passages by sea, through rivers or navigable channels.

366. If both the voyage and the time are specified in the contract of insurance, the insurer shall run the risks of the entire voyage. Where the duration of the voyage exceeds the time specified, the premium shall be increased in proportion to the excess. Where the voyage is completed in less than the time specified, the premium agreed upon cannot in any way be reduced.

1. If the assured does not know on board of which vessel the goods are shipped, such goods can be insured as shipped on board a vessel unknown to the assured.
2. If the nature or the kind of the goods is not stated in the contract, the goods can be insured under the general description of merchandise; but such insurance shall not include gold or silver coins or ingots, or pieces of gold and silver, or diamonds, pearls, gold ware, or munitions of war.
3. If the value of the thing insured is fixed in the contract in foreign money, it shall be reckoned at the value of such foreign money in Malta, according to the rate of exchange at the time of the stipulation of the contract.
4. If the value of the goods is not stated in the contract, such value can be proved by the invoices and the books: in the absence thereof, the goods shall be valued according to the market price at the time and place of loading, including all duties paid and charges incurred up to the time the goods have been shipped.
5. The anticipated profit is proved by means of the lists of prices current, or, in the absence thereof, by such other means as may establish the amount of profit which might have reasonably been obtained if the goods insured had reached their place of destination after a voyage without any accident.
6. Where by such lists of prices current or other means it is proved that, in case of safe arrival, the profit would have been less than the sum stated in the contract by the assured, the insurer is discharged on paying such lesser sum. If the goods insured would have yielded no profit, nothing shall be due by the insurer.
7. (1) The amount of the freight is proved by the contract of affreightment, or by the bill of lading.

(2) Failing such evidence, and in regard to goods belonging to the ship-owners themselves, the amount of the freight shall be fixed by experts.

1. If the period of the risk is not stated in the contract of insurance, such risk shall commence to run and shall come to an end as provided in article 355.
2. When goods have been insured, the period of the risk shall run without any interruption even in cases where, after the vessel had dropped anchor at an intermediate port, the master has been compelled to unload the cargo for the purpose of refitting the vessel; but the period of the risk shall end if the voyage is legally interrupted, or whenever the assured has ordered the goods not to be reshipped, or, lastly, immediately on the completion of the voyage.
3. The risk in regard to an insured freight shall commence, as far as the insurer is concerned, as and when the goods contributing to the freight are shipped, and shall end on their being landed.

in regard to insurers of loans on bottomry,

in regard to anticipated profits.

Anticipated profitsto be valued separately.

Reinsurance.

Increase of premium on outbreak of hostilities.

Seaman or passenger havinggoods insured to deposit bill oflading.

Amended by:XXXI.1966.2; LVIII.1974.68 ; XXIV.1995.362.

1. In regard to insurers of sums lent on bottomry, the period of the risk shall commence and end simultaneously with the beginning and the end of the risk of the lender, in terms of law, and according to such agreements as are notified to the insurer.
2. The period of the risk in regard to anticipated profits shall be the same as that in regard to goods.
3. (1) Where an insurance has been made on anticipated profits, such profits shall be estimated separately in the contract, with an indication of the goods in regard to which such profits are anticipated.

(2) In case of a valuation in gross of the subject insured, with an express covenant that the surplus value shall be considered as the anticipated profits, the insurance shall only be good to the extent of the cost of the subject insured, and of such amount of anticipated profits, over and above the cost, as may be proved under articles 370 and 371.

380. (1) It shall be lawful for the insurer to reinsure with another person things which he has insured.

(2)

The assured may insure the cost of the insurance.

(3)

The premium of the reinsurance may be greater or less than that of the insurance.

1. If, after the commencement of the risks contemplated in the contract of insurance, a war breaks out, and, in consequence thereof, the subject insured is exposed to greater danger, it shall be competent to the insurer to demand an increase of the premium, and, if such increase is not agreed upon by the parties, it shall be fixed by the court, regard being had to the circumstances causing the increase of the danger.
2. (1) A member of the crew or a passenger having on board the vessel in or on which he is serving or is carried, goods insured in Malta shall deposit a bill of lading in the Civil Court, First Hall, if the shipment is made in Malta; if the shipment is made outside Malta, such bill of lading shall be deposited with the diplomatic or consular representative of the Government of Malta in that port or with a person serving in a diplomatic, consular or other foreign service of any country which, by arrangement with the Government of Malta, has undertaken to represent that Government’s interests in that port or with a person authorised in that behalf by the President of Malta, or, in the absence of such persons, with some trustworthy merchant being a citizen of Malta or other Commonwealth citizen, or with a local magistrate.

(2) If the goods insured belong to the master, the bill of lading shall be signed by two of the principal members of the crew, and, in case of any disaster, the master shall also be bound to prove to the insurers the purchase of such goods.

Bankruptcy of the 383. (1) If the insurer becomes bankrupt before the insurer or the

termination of the risk, the assured may demand either that security

assured.

(2) The same right shall be competent to the insurer in case of bankruptcy of the assured, if the premium has not been paid to him.

384. A contract of insurance is null, if made upon -

385. (1) Any concealment, or any misrepresentation by the assured, or any discrepancy between the contract of insurance and the bill of lading, shall render the contract of insurance void, if such concealment, misrepresentation, or discrepancy is such as to lessen the estimate of the risk, or to change the subject-matter thereof.

(2) The insurance shall be void even if the concealment, misrepresentation, or discrepancy shall have had no effect upon the damage or loss of the things insured.

OF THE RIGHTS AND OBLIGATIONS OF THE INSURER AND OF THE ASSURED

386. (1) If the voyage is abandoned, even though by the act of the assured, before the insurer has begun to run the risk, the insurance becomes void, and the assured is not bound to pay the premium, or, in case he has paid it, he shall be entitled to demand from the insurer the repayment thereof.

(2) The insurer, however, shall receive, by way of compensation, one half per centum on the sum insured, or one half of the premium, if the whole premium does not amount to one per cent.

387. Any loss or damage which happens to the things insured by reason of stress of weather, shipwreck, stranding, fortuitous collision, compulsory deviations, or changes of voyage or vessel; or by reason of jettison, fire, capture, pillage, piracy, arrest and restraint of princes and peoples, declaration of war, reprisals; or in general by reason of any other peril of the sea, shall be at the risk of the insurer, unless the insurer shall have covenanted his exemption from one or more of such risks.

Voluntary deviations, etc., not to be borne byinsurer.

Inherent vice of subject insured.

Barratry.

Collisions.

Amended by:XXII.1976.4.

Cap. 234.

Pilotage dues, etc.

Clause “free from average”.

Clause “free from hostitilities”.

1. Any voluntary deviation, or change of voyage or vessel, and any loss or damage proceeding from the act of the assured, is not at the risk of the insurer, and he shall be deemed to have earned his premium, if the time of his risk has commenced.
2. (1) In the absence of an express agreement to the contrary, the insurer is in no case answerable for damages or averages proceeding directly from an inherent vice or from the nature of the subject insured.

(2) Where an insurer is bound to pay for damages occasioned by leaking or liquefaction, the leakage or diminution to which the thing insured is ordinarily subject shall be first deducted.

390. (1) In the absence of an agreement to the contrary, the insurer shall not be answerable for such malversations or faults of the master or crew as are known by the name of barratry of the master.

(2)

Any such contrary agreement is ineffectual in regard to such portion of the subject insured as belongs to the master.

(3)

The insurer shall, however, be answerable for the unskilfulness of the master or crew.

391. (1) In cases of damage caused by a collision of vessels, the insurer shall be liable to make good the damage if the collision was accidental or was caused by the fault of the master or the crew of another vessel.

(2)

Where, however, it is proved that both the vessel insured as well as the other vessel were in fault, or where it is doubtful to whose fault the collision is imputable, the damage, in cases not provided for by the Merchant Shipping Act, shall be borne in equal portions by the colliding vessels; and, in such cases, as well as in the case of a collision caused by the fault of the master or the crew of the vessel insured, the insurer is not responsible, unless he has assumed liability also for cases of barratry of the master.

(3)

The liability of the insurer, in the cases contemplated in this article, is limited to the damage sustained by the vessel insured, and does not extend to any indemnity which, by reason of the collision, may be due by the vessel insured to the other vessel.

1. The insurer shall not be liable for ordinary pilotage and towage dues, or any other kind of dues imposed on the vessel or the goods, unless such dues have been incurred in consequence of any damage for which the insurer is liable.
2. Where the insurance is contracted with the clause "free from average", the insurer is not answerable for any average, whether general or particular, except in cases which give rise to an abandonment.
3. (1) Where the insurance is contracted with the clause "free from hostilities", the insurer shall be discharged from all liability if the goods perish or are damaged by reason of any violence, capture, pillage, arrest and restraint of princes and peoples, declaration of war, or reprisal.

(2)

The contract of insurance shall cease as soon as the subject insured suffers any delay, or the course of the voyage is altered, by reason of hostilities.

(3)

Nevertheless, the insurer shall not on such account be discharged from the obligation of making good any damage sustained before the commencement of hostilities.

1. Where any vessel or goods insured "free from hostilities" are, by hostile force, taken or detained in any port, such vessel or goods shall be deemed to be captures at sea, and the risk of the insurer shall cease.
2. Where the insurance is made separately on goods which are to be shipped on two or more vessels specified in the contract, with a statement of the amount insured on each vessel, and where the whole of such goods is shipped on one vessel or on a smaller number of vessels than that stated in the contract, the insurer is only liable for the amount which he has assured on the vessel or vessels receiving the goods, notwithstanding the loss of all the vessels so specified; and shall, nevertheless, be entitled to one half per centum on the amounts the insurances whereof have thus become void.
3. (1) The insurer’s risk ceases, and he shall be entitled to the premium, if the assured sends the vessel to a more distant port than that stated in the contract, even though it be in the same course.

(2) The insurance shall have its full effect if the voyage is shortened.

398. (1) The assured is bound to communicate without delay to the insurer any information which he receives concerning the loss of the subject insured, and to furnish the insurers, if required, with copies or extracts of any document conveying such information.

(2) Otherwise, he shall bear the damages and costs.

1. Unless and until the assured shall exercise the right of abandonment competent to him, he is bound to use his best endeavours for the preservation or recovery of the subject insured.
2. In case of an insurance on a loan on bottomry, the insurer, in the absence of an agreement to the contrary, shall not be responsible for any fraud on the part of the borrower.
3. Where the things insured are not dispatched, or only a part thereof is dispatched, the insurer shall receive one half per centum, or one half of the premium, according to the provisions of article 386, on the sum insured or on the sum exceeding the value of the goods dispatched, as the case may be.
4. A person effecting an insurance on behalf of another person without disclosing the name of the latter, shall not be entitled to recover the premium if such other person fails to dispatch the goods insured, or dispatches only a part thereof.

Insurance for an amount over or under the real value.

Several contracts of insurance of the same subject.

If there are goods on board to the full amount of the several insurances made.

If master is allowed to touch at different ports.

Return of premiumin case of nullity of contract,

except in case offraud, etc., of assured.

Insurance is null where insurer is aware of safe arrival of vessel, etc.

403. (1) An insurance effected for an amount exceeding the value of the subject insured is void as regards the assured only, if fraud or deceit on his part be proved.

(2)

If no fraud or deceit is proved, the insurance is valid up to the value of the subject insured, and, in regard to the excess, the insurers shall receive one half per centum, or one half of the premium, according to the provisions of article 386.

(3)

An agreement that the insurer shall be answerable for the whole amount stated in the contract, independently of the value of the subject insured, is valid.

(4)

Where the insurance is effected for a value less than the real value, the insurer shall only be liable in proportion to the value stated.

404. (1) Where there are several contracts of insurance effected without fraud on the same subject, and the first contract covers the entire value thereof, such first contract only shall hold good.

(2)

The insurers who have signed the subsequent contracts shall be discharged, and shall only receive one half per centum on the sum insured, or one half of the premium, according to the provisions of article 386.

(3)

If the entire value of the goods loaded is not covered by the first contract, the insurers who have signed the subsequent contracts shall be answerable for the remaining value, according to the order of the date of the contracts.

1. If there be goods on board to the full amount of the sums insured, and a portion of such goods is lost, the loss shall be borne by all the insurers of such goods ratably in proportion to their respective interest.
2. If the master is allowed to touch at different ports for the purpose of completing or changing his cargo, the insurer runs the risks of the goods insured, as provided in article 355.
3. In case of total or partial nullity of the contract of insurance, the insurer shall, provided the assured has acted in good faith, return the premium or, as the case may be, such proportionate part thereof as corresponds to the amount received by him in respect of risks which did not attach, deducting one-half per centum, or one-half of the premium as provided in article 386.
4. If the contract is avoided by reason of any deceit, fraud, or bad faith on the part of the assured, the insurer is not bound to return the premium.
5. Where an insurance is effected on vessels or goods which, at the time of the stipulation of the contract of insurance, had already reached their place of destination, or had sustained a disaster, such insurance is void, if it is proved, or can be presumed that, at the time of the signing of the contract, the insurer was aware of the arrival of the subject insured, or, as the case may be, the assured was aware of the happening of the disaster.

1. Such presumption shall be deemed to exist whensoever, reckoning at the rate of four miles to the hour, or whensoever, regard being had to the means of communication or other circumstances, it is shown that the information relating to the arrival or loss of the vessel, from the place of such arrival or loss, or from the place whence such information first came, could have reached the place where the contract was made, before the signing of the same.
2. Such presumption shall also be deemed to exist whensoever, before the signing of the contract of insurance, any vessel shall have come to the place where the contract was made, from the place of the arrival or loss, or from the place whence information of such arrival or loss first came, provided such vessel shall have sailed from the said place after the arrival or loss.
3. (1) The presumption mentioned in the last preceding article shall not arise if the insurance is effected under the clause "good or bad news", or any other like clause.

(2) In such case the insurance cannot be avoided, unless it is proved that the insurer was aware of the arrival, or the insured of the loss, before the signing of the contract.

413. (1) The things insured may be abandoned in the following cases:

(2) Any other damage shall be deemed to be an average loss, and shall be settled between the insurer and the assured in accordance with their agreements, and according to their respective interest.

414. The sale of the goods in consequence of a peril of the sea, during the voyage and before the arrival of such goods at the place of destination, is deemed to be a case of loss which authorises the abandonment, whatever the proceeds of such sale may be.

Contributions to general average not considered in establishing valueof loss or deterioration.

Assured may sue for abandonment or for average.

No abandonment before risk attaches.

Abandonment cannot be conditional or partial.

Time within which abandonment is to be made.

Assured to givenotice to insurer.

When lapse of time gives right toabandonment without necessity of proving loss.

1. Where it is necessary to ascertain whether there is deterioration or loss corresponding to three-fourths of the value of the goods insured, the damages which arise from general average contributions are not taken into consideration. The expenses relating to the sale of the said goods, and the expenses of the acts preparatory to the sale are, however, taken into consideration.
2. (1) In cases where the things insured may be abandoned, the assured may elect either to make the abandonment or to bring an action for average.

(2) It shall not be lawful for the assured, after having elected to bring an action for average, to waive such action, and bring an action for abandonment. He may, however, waive the abandonment, if not yet accepted by the insurers, and bring an action for average.

1. It shall not be lawful to make an abandonment before the risk insured against has attached.
2. The abandonment of the subject insured cannot be partial or conditional. It extends only to the property which is the subject of the insurance and of the risk.
1. (1) An abandonment to the insurer must be made within the time following:
1. six months from the day on which information of the disaster is received, if it has happened on the coasts of Europe, or on those of Asia or of Africa in the Mediterranean, or, in the case of capture, from the day on which information is received that the prize was carried into any of the ports or places situated on the above-mentioned coasts;
2. eighteen months to run from the aforesaid days respectively, if the disaster happened in, or the prize was conveyed to any other part of the world.

(2) When the said times have expired, it shall not be competent to the assured to make the abandonment.

420. (1) In every case in which the right to abandon is competent, and in case of any other peril the risk whereof is to be borne by the insurer, the assured must give notice to the insurer of any information which he may have received thereon.

(2) Such notice shall be given without delay under pain of damages and interest.

421. (1) If, upon the expiration of one year from the day of the vessel’s departure, or from the day to which the last news of the vessel relates, in the case of ordinary voyages, or upon the expiration of two years, in the case of long voyages, the assured declares that he has received no news of the vessel, he shall be entitled to abandon, and to claim payment of the sum insured without any necessity of proving the loss of the vessel.

(2) Upon the expiration of the aforesaid times of one year or of two years, the assured shall be allowed, for the purpose of commencing proceedings, the times fixed in article 419.

422. (1) In the case of an insurance effected for a fixed period of time, when the times mentioned in the last preceding article have elapsed, the loss of the vessel shall be presumed to have happened within the period of the insurance.

(2) If there are several successive insurances for a fixed period of time, the loss is presumed to have happened within the period of the first insurance; or, in case of news received as contemplated in the last preceding article, within the period of that particular insurance to which the date of the last news corresponds.

1. Long voyages are those having for their destination any coast or country situated beyond the Straits of Gibraltar, excepting the European sea coast as far as the Sound, the African sea coast as far as Cape Verde, the Baltic Sea, the British Isles, the Madeiras and the Canary Islands.
2. The assured may, by means of the notice mentioned in article 420, either abandon, and claim from the insurer payment of the sum assured within the time fixed in the contract, or reserve his right to abandon within the times fixed by law.
3. The assured shall, when making the abandonment, state all the insurances made, or caused to be made, or ordered by him, and the sums of money borrowed on bottomry or at respondentia. In default of so doing, the time for payment, which is to run from the day of the abandonment, shall be suspended until the day on which the assured shall make and notify such statement, but the period prescribed for making the abandonment shall not be enlarged thereby.
4. If the statement be fraudulent, the assured shall be deprived of the benefits of the insurance, and shall be bound to pay the sums borrowed on bottomry or at respondentia , notwithstanding the loss or the capture of the vessel.
5. (1) In case of shipwreck or stranding with partial wreck, the assured is bound to labour for the recovery of the things insured, without prejudice to the abandonment to be made in due time and at the proper place.

(2) The assured is entitled to the reimbursement of the expenses for recovery up to the value of the things recovered.

428. (1) If the time for payment is not stated in the contract, the insurer shall pay the sum insured four months after the notice of the abandonment.

(2) After the expiration of such time, the insurer shall also pay interest at the legal rate. The things abandoned shall be charged with the payment.

Insurer cannot be sued before proof of shipment and loss is furnished to him.

When court is to order provisional payment.

Effect of abandonment.

Abandonment of ship to includefreight of thingssaved.

Arrest and restraint of princes and peoples.

Assured to endeavour to secure release of goods arrested.

Abandonment on the ground ofunseaworthiness.

Notice to be given to insurers of cargo.

Master to procure another vessel.

1. The insurer cannot be sued for the payment of the sums insured before the documents proving the shipment and the loss of the goods insured are notified to him.
2. (1) Where, in the opinion of the court, the defence of the insurers is such as to require a separate trial, the court shall order the insurers to make provisional payment to the assured of the sum insured, subject to the obligation of the assured to give security.

(2) Such security shall cease to be binding on the expiration of two years, if within such time no action shall have been brought by the insurers.

1. Where an abandonment has been notified and accepted, or adjudged valid, the property in the thing insured vests in the insurer from the day of the abandonment, and the insurer cannot, under the excuse of the vessel’s return, avoid payment of the sum insured.
2. The freight of goods saved, even if paid in advance, is included in the abandonment of the vessel, and becomes likewise the property of the insurer, without prejudice to the rights of the lenders on bottomry, or of the seamen for their wages, or of other parties for the recovery of the expenses incurred during the voyage.
3. (1) In the case of arrest and restraint of princes and peoples, the assured shall, without delay, give notice to the insurer of the information received.

(2)

The abandonment of the property arrested cannot be made until after six months from the day of such notice, if the arrest is effected in the Mediterranean or other European sea; or until after one year, if the arrest is effected in a more distant place.

(3)

Such times shall commence to run from the day of the notice of the arrest. Where the goods arrested are of a perishable nature, the aforesaid times shall be reduced to two months in the former case, and to three months in the latter case.

434. (1) During the running of the times fixed in the last preceding article, the assured is bound to use all due diligence to obtain the release of the goods arrested.

(2) The insurers on their part may, either in concert with the assured or separately, endeavour to secure such release.

1. An abandonment on the ground of unseaworthiness cannot be made if the vessel can be repaired and made fit to continue the voyage to her place of destination, unless the expense of refitting the vessel is such as to exceed three-fourths of the value thereof, saving the right of action of the assured against the insurers for the recovery of the amount of the expenses incurred and the average sustained.
2. Where the vessel has been declared unfit for navigation, the party whose goods have been insured is bound to give without delay notice to the insurer of the information received.
3. The master is bound in such case to use all due diligence

to procure another vessel to carry the goods to their place of destination.

1. The insurer shall run the risks of the goods reshipped on another vessel, in the case referred to in the last preceding article, up to the time of the arrival and discharge of such goods.
2. The insurer shall moreover be liable for all averages and all expenses incurred for the unloading, storage and safe keeping in warehouses, and reshipment of the goods, for any excess of freight, and for any other expense incurred in saving the goods, to the extent of the sum insured.
3. If within the time of two months the master is unable to procure another vessel for the reshipment of the goods and the carriage thereof to the place of destination, it shall be lawful for the assured to abandon the goods.

OF AVERAGE AND OF JETTISON AND AVERAGE CONTRIBUTION

1. Every extraordinary expenditure made on behalf of the vessel or of the cargo, or of both, and every damage sustained by the vessel or the cargo from the time of the loading or the sailing up to the time of the return or discharge, fall under the description of average.
2. Failing special agreements between all the parties, averages are regulated in accordance with the following provisions.
3. There are two kinds of average: gross or general average, and simple or particular average.

444. The following are general averages:

74	CAP. 13.]		COMMERCIAL CODE
		(f)	the maintenance of the seamen during the carrying out of the repairs of the damage voluntarily sustained for the common safety;
		(g)	the expenses of unloading in order to lighten the vessel, and of putting into any port or other place, when the vessel is compelled to do so by stress of weather, pursuit of enemies or pirates, or any other cause for the safety of the vessel and the cargo;
		(h)	any damage caused to the vessel or to the cargo, or to both, if the vessel is voluntarily run ashore to avoid her capture or loss, or to save the vessel or the cargo from any other imminent peril; the expenses and wages for getting the vessel afloat; and the salvage payable for extraordinary services to avoid loss or capture in the aforesaid cases;
		(i)	generally, any damage voluntarily sustained in cases of danger, and all expenses incurred, for the common benefit and preservation of the vessel and of the goods, from the time of loading and sailing, up to the time of the return and discharge.

Things which 445. The goods, the vessel according to her condition at the time contribute towards

of her arrival, and the clear amount of the freight after deducting

general average.

the wages of the seamen, their maintenance, and other expenses of the voyage, shall each and all contribute in proportion to their respective values or amounts, towards general average.

How price of 446. The price of the goods shall be fixed according to their goods is fixed.

Particular 447. The following are particular averages: averages.

(a)

any damage sustained by the goods through inherent defects, or by reason of stress of weather, capture, shipwreck, or stranding;

(b)

expenses incurred to save the goods;

(c)

the loss of cables, anchors, sails, masts, or cordage, occasioned by stress of weather or other marine accident; the expenses of putting into any place owing to the fortuitous loss of the said things, or to the necessity of victualling the vessel, or for the purpose of repairing her in case of leakage;

(d)

the wages and maintenance of the seamen during the refitting of the vessel for any of the causes mentioned in this article;

(e)

the wages and maintenance of seamen during quarantine; and

(f)

generally, all expenses incurred for and any damage sustained by the vessel alone, or the goods alone, from the time of the loading and sailing to that of the return and discharge, whenever such expenses and damage were not incurred or caused voluntarily, and for the common safety of the vessel and cargo.

1. Particular averages are borne and paid by the owner of the thing which has sustained the damage or occasioned the expense.
2. (1) Any damage sustained by the goods by reason of the master having neglected to secure the hatches, to moor the vessel, or to provide good cables, or by reason of any other accident occasioned by the neglect of the master or the crew, are likewise particular averages to be borne by the owner of such goods; but for any such damage the owner has a remedy against the master, the vessel and the freight.

(2) Any damage which the owners of the vessel sustain through an unnecessary and unreasonably long stay in port shall be made good by the master.

1. Pilotage and towage dues in order to put into or sail from any port or place, the expenses relating to sea-protests, tonnage and other navigation dues, are not averages but simple charges on the vessel, saving the provisions of paragraph (g) of article 444.
2. No action for general average can be brought if such average does not exceed one per centum of the joint value of the vessel and cargo, and no action for particular average can be brought if such average does not exceed one per centum of the value of the thing damaged.

452. (1) If by reason of stress of weather or the pursuit of an enemy, the master deems it his duty, for the safety of the vessel, to throw anything overboard, or to cut away the masts, or to abandon the anchors, he is bound to consult the parties interested who may be on board the vessel and the principal members of the crew.

(2) If there is a difference of opinion, the opinion of the master shall prevail.

1. The things least useful, the heaviest, and the least valuable, shall be the first to be thrown overboard.
2. (1) The master shall, as soon as possible, draw up a statement of the deliberation as to the jettison.

(2) The statement shall indicate the grounds on which it was decided to make the jettison, and shall mention the goods thrown overboard or damaged; it shall include the names of those who agreed and of those who disagreed with the master; and it shall be copied in the log-book.

455. The statement of the losses and damage shall be made at the place of discharge of the vessel.

How things thrown overboard are valued.

Adjustment ofaverage loss.

Where quality ofgoods is not truly stated.

Ammunition, victuals, etc., do not contribute to general average.

Goods for which there is no bill of lading.

Deck-cargo.

Where jettison does not save vessel.

Where the vessel is saved by the jettison, but is afterwards lost.

Damage sustainedafter the jettison.

1. Goods thrown overboard shall be valued according to the market price at the place of discharge; their nature and quality shall be proved chiefly by the bills of lading and invoices, if any.
2. The apportionment of the losses and damages shall be made on the goods thrown overboard and on those saved, on the vessel and on the freight, in proportion to their value at the place of discharge.
3. (1) In cases where the quality of the goods has not been truly described in the bill of lading, if the goods are found to be of greater value than that stated, they shall, if saved, contribute according to their valuation; but, if lost, they shall be paid for according to the quality as stated in the bill of lading.

(2) If the goods are found to be of an inferior quality to that stated in the bill of lading, they shall, if saved, contribute on the basis of the quality shown in the bill of lading, but, if jettisoned or damaged, they shall be paid for according to their value.

459. (1) Ammunition, victuals, the effects of the crew, and the wearing apparel of the passengers do not contribute to general average.

(2) The value of such things, however, if they are jettisoned, shall be paid for by a contribution on all the other things.

1. Goods for which there is no bill of lading, nor a declaration of the master, are not paid for, if jettisoned, but shall contribute, if saved.
2. (1) Goods carried on deck shall contribute, if saved; if they are jettisoned, or damaged by the jettison, no claim for contribution can be made by the owner thereof, who shall, however, have a right of recourse against the master, where the latter is liable according to law.

(2) The provisions of this article shall not apply in the case of voyages between Malta and Sicily, or between Malta and Tripoli or Tunis, or in the case of goods which it is customary to carry on deck.

1. If the jettison does not save the vessel, there shall be no contribution, and the goods which have not been jettisoned, and which have been saved, shall not be liable to pay for the things jettisoned, or to make good the damage sustained by other goods.
2. If the jettison saves the vessel and if, in prosecuting her voyage, she should be afterwards lost, the effects saved shall contribute towards the jettison, according to their value in the condition in which they may be found, after deducting salvage expenses.
3. (1) Goods jettisoned do not, in any case, contribute to the payment for any damage which the goods saved sustain after the jettison.

(2) The cargo does not contribute to the payment of the vessel which is lost or has become unseaworthy, except in the cases mentioned in article 444.

1. Where the vessel has been cut open to extract the goods, such goods shall contribute to the repair of the damage caused to the vessel.
2. Where the vessel is lost with the remainder of the cargo, there shall be no claim for contribution against goods put into boats to lighten the vessel, even though such goods arrive in safety.
3. Where, after the apportionment of the contribution, the goods jettisoned are recovered by their owners, such owners must return to the master and to the interested parties what they received out of the contribution, deducting the damages caused by the jettison, and the expenses of recovering the goods.
4. The owner of the goods can in no case be called upon to contribute to general average beyond the value of the goods at the time of their arrival.

OF PRIVILEGED DEBTS ON SHIPS AND OTHER SEA-GOING
VESSELS

Articles 469 to 476, both inclusive, repealed by: XXXVII. 1988.41.

1. Every trader who suspends payment of his debts is in a state of bankruptcy.
2. (1) The trader or his lawful representative can, on the suspension of payments, make a declaration thereof in the Civil Court, First Hall.

(2) In case of the bankruptcy of a partnership en nom collectif the declaration must contain the name and the place of residence of each of the partners jointly and severally liable.

479. The declaration of the trader must contain his name and surname, and must state the nature of the business carried on by him, the name, surname and other particulars of each of his creditors together with their place of residence, and the quality and nature of the debts.

Production of books.

Amended by:XXIV.1995.362.

Summoning ofcreditors.

Amended by:XXIV.1995.362.

Declaration of bankruptcy ondemand of creditor.

Amended by:XIII.1983.5; XXIV.1995.362;

L.N. 407 of 2007.

Declaration may not be sought by son against father or vice versa, etc.

When declaration may be sought after death of trader.

Creditor demanding adjudication ofbankruptcy to give security.

Where no funds exist in estate of bankrupt.

Reimbursement of expenses incurred by creditor.

1. On making the declaration mentioned in the foregoing articles, the trader shall, at the same time, file in the Civil Court, First Hall, all his commercial books and papers.
2. Where a trader has presented any such declaration, the registrar shall, by letter, call upon the creditors mentioned in the declaration to appear before the Civil Court, First Hall, there to show cause why their debtor should not be declared to be in a state of bankruptcy, and in order that curators may be appointed. The registrar shall cause the declaration to be published, by means of a notice containing an abstract of the same, in the Government Gazette and in one or more newspapers.
3. (1) It shall also be lawful for any creditor, whether the debt owing to him is a commercial debt or otherwise, and even though such debt has not yet fallen due, to proceed summarily before the Civil Court, First Hall, against the debtor or his lawful representative, demanding a declaration that such debtor is in a state of bankruptcy.

(2)

A declaration of bankruptcy may not be sought by a son against his father, or by a father against his son, or by one spouse against the other.

(3)

The bankruptcy of a trader can be declared after his death, if prior to his death he had suspended payment; in such case the declaration of bankruptcy cannot be demanded by the creditors except within three months of the death of the debtor.

(4)

In the case of a demand for a declaration of bankruptcy as provided in this article, the party making the demand shall, simultaneously with the demand, give security in an amount not exceeding four hundred and sixty-five euro and eighty-seven cents (465.87), by way of penalty, in favour of the party against whom the demand is made, for the due prosecution of the case without delay and the substantiation of his claim; in default whereof, it shall be lawful for the court to order the amount of the security to be paid, in whole or in part, to the party in whose favour such security has been given:

Provided that such payment shall not operate as a bar to an action against the plaintiff for damages and interest arising from such proceedings.

483. (1) If, where no funds exist in the estate of the bankrupt, the creditor on whose demand the bankruptcy has been declared, neglects to sue out, at his own expense, such acts and proceedings as are necessary in order to arrive at the ranking of the creditors, it shall be lawful for any other creditor, or even for the bankrupt himself, to sue out such acts or proceedings.

(2) All necessary expenses incurred in bankruptcy proceedings shall be repaid to the creditor disbursing them, as a first charge out of the first moneys received on account of the estate in preference to any other debt.

484. (1) Precautionary and conservatory acts against the property or person of the debtor can be sued out by the creditors by the same process as the law prescribes for the issue of any act or warrant in security of any other debt, having regard to the nature and quality of the debt.

(2)

But a bankrupt who has been arrested at the suit of any creditor or who has withdrawn to his house from fear of being arrested, can apply to the Civil Court, First Hall, for his temporary release for a period of six months which may, at the discretion of the court, be extended for just cause. The court shall decide the matter upon a sworn application against the curators and the creditors at whose suit the warrant of arrest was issued. Such temporary exemption of the bankrupt from personal molestation shall have effect even as regards the creditors and other interested parties who have not been summoned.

(3)

Such temporary release shall be granted where it is not shown that there has been deceit or fraud on the part of the bankrupt. But it shall be open to the creditors, by sworn application, to insist on the arrest of the bankrupt on proof of any deceitful or fraudulent act on his part. The court may also, of its own motion, order, during the course of the proceedings, the temporary arrest of the bankrupt, if there be against him any grounded presumption of deceit or fraud.

485. (1) Every act transferring property, whether corporeal or incorporeal, including any renunciation of any succession whatsoever or of an acquired prescription, and every obligation incurred or other act made by the bankrupt under a gratuitous title for the purpose of defrauding his creditors, shall be null and void as regards the body of creditors, of whatever kind they may be, even though the parties interested be in good faith.

(2)

Every act of the same kind and every obligation, act or payment made or incurred under an onerous title can be annulled if there be fraud also on the part of the party interested.

(3)

Any such acquisition, obligation, act or payment shall be deemed to be fraudulent as regards the party interested, if it is proved that such party knew of the bankruptcy or of the existence of circumstances giving rise to a declaration of bankruptcy.

486. (1) From the date of the declaration of bankruptcy made by the trader himself or, as the case may be, from the date of the judgment declaring the bankruptcy, the bankrupt is ipso jure dispossessed of the administration of all his property, whether corporeal or incorporeal, and whether relating to his business or not.

(2) Saving any provision to the contrary of the donors or testators, everything that devolves on the debtor after the bankruptcy shall, when and as the same so devolves, fall under such dispossession, subject, however, to the charges on the property so devolved and to a proportionate allowance for daily maintenance.

Debts owing bybankrupt not yet due, become exigible ondeclaration of bankruptcy.

Appointment of curators.

Qualifications.

Publication of abstract of judgement in Gazette.

Removal of curators.

Property to vest in curators.

Seizure of property.

Amended by:XXIV.1995.362.

Books open to inspection.

Collection of moneys.

487. Debts owing by the bankrupt, not yet fallen due, even if privileged, secured by pledge, or hypothecary, become exigible upon the declaration of bankruptcy made by the trader himself or upon the judgment of the court declaring the bankruptcy.

OF THE RIGHTS AND DUTIES OF THE CURATOR OF A BANKRUPT

1. The court shall in and by the judgment declaring the bankruptcy, whether the proceedings were taken upon the declaration of the bankrupt himself or upon the demand of the creditors, appoint one or more curators to exercise the functions assigned to them under this Part.
2. The curators to be appointed by the court must be persons whom the court deems fit faithfully to discharge the duties of their office, even though they be creditors or relations of the bankrupt.
3. The curators shall cause a notice containing an abstract of the judgment declaring the bankruptcy to be published in the Government Gazette and in one or more newspapers.
4. The court may, at any stage of the proceedings, either of its own motion or upon the demand of one or more creditors or of the bankrupt, remove the curators. No appeal shall lie against such decision. In case of removal, new curators shall be appointed.
5. (1) The curators shall not exercise any of their functions until they have taken the oath that they will truly and faithfully discharge the duties assigned to them.

(2)

Upon the taking of such oath, the possession of all property and all rights of any kind whatsoever belonging to the bankrupt, other than the right of nomination to any vacant ecclesiastical benefice, as well as all rights and property which he may acquire until his discharge, shall vest in the curators.

(3)

The curators shall be deemed to be officers of the court, and as such they are subject to the orders of the same.

1. If the property of the bankrupt, including his books and papers, have not already been secured upon the demand of some creditor, the curators, as soon as they have been sworn, shall apply to the judge of the Civil Court, First Hall, for the issue of a warrant of seizure. In the case of bankruptcy of a partnership en nom collectif, the warrant of seizure shall be executed not only at the principal offices of the partnership, but also at the residence of each partner.
2. The books and papers of the bankrupt shall be open to inspection by all the parties interested, and, by permission of the judge, they may be delivered, wholly or in part, to the curators.
3. The curators shall receive all sums due to the bankrupt. The receipts to be given by the curators shall be viséd by the registrar who shall keep an abstract thereof; otherwise they shall

not have the effect of discharging the debtors. The curators shall take possession of every other thing which is still in the possession of the bankrupt or belongs to him.

1. The curators shall sell, by means of a licensed auctioneer, such goods and merchandise as are perishable, after stating their reasons to the judge and obtaining his authority.
2. Non-perishable merchandise cannot be sold by the curators, before the proceedings relating to the composition or arrangement provided for in the following articles have taken place, except in pursuance of a judgment of the court upon a sworn application issued against the parties interested.
3. (1) It shall be lawful for the curators, with the authority of the judge, to continue to carry on the business of the bankrupt, where they are of opinion that the continuation of such business will afford a means of re-establishing the bankrupt’s affairs, or of increasing his assets for the benefit of the creditors.

(2) The judge shall, when granting such authority, give such directions as he considers most advantageous in the interest of the bankrupt and of his creditors:

Provided that if any creditor shall at any time make opposition to such authority, it shall be in the power of the court, on just cause being shown, to withdraw the authority, after hearing the curators and the bankrupt.

1. The curators can, at the discretion of the judge, keep such sum as the judge shall determine in order to meet necessary expenses. All other moneys shall be paid by the curators into the registry of the court.
2. From the time the curators enter upon the duties of their office, all civil actions commenced before the bankruptcy against the person and property of the bankrupt can only be prosecuted against the curators. After the bankruptcy, no action can be brought except against the curators.
3. (1) The curators, on entering upon the duties of their office, must take every necessary step for the preservation of the rights of the bankrupt as against his debtors; they shall also cause to be registered in the Public Registry any hypothec affecting the property of the debtors of the bankrupt if he has failed to do so.

(2) It shall be the duty of the curators to sue for the payment of the debts, of whatsoever kind, due to the bankrupt, for the benefit of the creditors: But it shall not be lawful for the curators to make any compromise or refer any dispute to arbitration, without the consent in writing of the majority in value of the creditors of the bankrupt, and the authority of the judge.

502. (1) Within the period of one month from the judgment declaring the bankruptcy, the curators shall, notwithstanding any appeal from such judgment, make up an inventory of the bankrupt’s property.

(2) Such period may for just cause be enlarged.

Contents of inventory.

Power of court.

Amended by:XXIV.1995.362.

Recovery of bills of exchange, etc.

Recovery of goods.

Recovery of goodssold to bankrupt.

Goods not yet delivered to bankrupt.

Curators’ power towithdraw goods.

(3) Every creditor has a right, and the bankrupt is bound to assist in the making up of the inventory.

1. The inventory shall contain a true list together with a description and valuation of all the bankrupt’s property, movable and immovable, a statement of the debts owing to or due by the bankrupt, a statement of his profits and losses, and a statement of the expenses.
2. It shall be in the power of the Civil Court, First Hall, either of its own motion or on the demand of the curators or of one or more of the creditors, to compel the bankrupt and any other person to give on oath all such information as it may deem necessary or useful in the interest of the body of creditors or for the making up of the inventory.

1. It shall be lawful, in case of bankruptcy, to recover all bills of exchange and other documents of title yet unpaid which are found in kind in the possession of the bankrupt at the time of the bankruptcy, whenever such bills or documents of title shall have been endorsed by the owner for collection for his own account.
2. (1) It shall likewise be lawful to recover goods delivered to the bankrupt by way of deposit or to be sold on account of the owner, so long as the same exist in kind, wholly or in part.

(2) It shall also be lawful to recover the price or part of the price of such goods, which has not been paid in cash or otherwise, or set off in account current between the bankrupt and the buyer.

507. (1) Goods sold to the bankrupt or forwarded for his account may be recovered, so long as they are in his possession.

(2)

Nevertheless, such right of recovery may not be maintained in cases where, before their arrival, the goods have been, without fraud, sold on invoices or bills of lading signed by the party forwarding the goods.

(3)

The party recovering the goods shall be bound to return to the estate the sums received by him on account, and all advances made in respect of freight, commission, insurance or other expenses, and must pay what remains due in respect of such charges.

1. It shall be lawful for the seller to retain the goods sold by him to the bankrupt, but not yet delivered to the bankrupt or not yet forwarded to him or to a third party on his behalf.
2. In the cases mentioned in the last two preceding articles, the curators shall have power, with the authority of the judge, to take the goods on paying to the seller the price agreed upon between him and the bankrupt.

OF THE PROOF OF DEBTS AGAINST THE BANKRUPT’S ESTATE

510. (1) After making up the inventory, the curators shall, within three days, make a list of all the creditors.

(2)

Such list shall be filed in the registry, and the registrar shall, upon an order of the judge, summon a meeting of the creditors by means of a notice to be published in the Government Gazette and in one or more newspapers.

(3)

The meeting of the creditors shall take place in the presence of the judge on the day and at the place fixed in the notice.

1. Every creditor shall, at such meeting, or on another subsequent day, as the judge shall direct, present an application for admission of his debt, and shall produce and specify the documents in support of the same. A procès-verbal shall be drawn up containing the pleas set up by the curators or by the creditors.
2. (1) Any person, although his debt has not been proved and admitted, may, on summarily showing that he is interested, assist in the examination of the claims of the other creditors and set up pleas in regard thereto.

(2) In cases where one of the curators opposes or claims any right in his own name, the interest of the body of creditors shall be defended by the other curator or curators not being objectors or claimants; but if everyone of the curators shall, in his own name, oppose or claim some right, the body of creditors shall, in this instance and for this purpose only, be represented by some other person whom the judge shall, by decree, appoint, without any other formality.

1. If any person wilfully makes any false claim or claims a larger sum than that actually due to him, he shall be liable to be sued before the Civil Court, First Hall, for the payment of twice the amount falsely claimed, for the benefit of the estate of the bankrupt.
2. Upon the presentation of the creditors’ applications, the judge shall proceed to the examination of the claims. The decree of the judge relating to the examination of the claims shall contain a reference to the documents substantiating the claims, and shall state the place of residence of the creditors and the amount admitted.
3. (1) As soon as the decree mentioned in the last preceding article is prepared, it shall be deposited in the registry and published by means of a notice in the Government Gazette and in one or more newspapers. Notice of such deposit shall be given individually to the creditors who made application for the proof of their claims.

(2) If such decree be not impeached within the period of eight days after notice of the deposit, it shall ipso jure be deemed to be accepted.

(3) The decree may be impeached by sworn application before

List of creditors failing to appear.

Meeting ofcreditors after decree relating to examination of claims.

Bankrupt to be present.

Terms of composition.

Taking of votes.

Composition to beagreed upon bymajority in number and three-fourths in value of creditors.

Where majority ofcreditors agreeing to composition donot represent three-fourths of sums admitted.

516. Upon the deposit of such decree in the registry, the curators shall draw up and file in the same registry a note containing the names of the creditors who failed to appear.

OF THE COMPOSITION OR SCHEME OF ARRANGEMENT

517. (1) Within ten days after the deposit of the decree relating to the examination of the claims, the registrar shall call a meeting of the creditors whose claims have been admitted.

(2) Such meeting shall be held on the day and at the time fixed by the judge who shall preside at such meeting.

518. (1) The bankrupt shall also be summoned to such meeting. He cannot attend by proxy except for reasons approved by the judge.

(2)

The judge shall examine the instruments of proxy of those who appear on behalf of absent creditors. He shall cause the curators to give, in his presence, an account of the state of the bankruptcy and of everything that has taken place.

(3)

The bankrupt may, in all cases, be heard.

1. At such meeting, it shall be considered whether the case admits of a composition. The bankrupt shall propose the terms of the composition, and the creditors shall have at least eight days to consider the proposal.
2. At the expiration of the eight days, the creditors shall meet again in the presence of the judge, and their votes shall be taken.
3. (1) The registrar shall draw up a procès verbal of the proceedings and of the resolutions passed at such meetings.

(2)

Every creditor can give his vote, and the final agreement shall not be deemed to be approved except by the concurrence of a majority in number and three-fourths in value of the creditors who have proved.

(3)

Creditors having a hypothec registered in the Public Registry or holding a pledge cannot vote on the resolution relating to the composition.

522. (1) If the majority of the creditors present agree to the composition, but their claims do not represent three-fourths of the sums admitted to be due by the bankrupt, the deliberation shall be adjourned for another eight days, as a last adjournment.

(2) Tutors or curators of creditors cannot consent to the composition without the authority of the judge of the Civil Court, Second Hall, but the intervention of the judge shall not be requisite at the execution of the composition.

(3) If the composition is not agreed upon, it shall be lawful for any of the creditors, at any other stage of the proceedings, to propose a fresh scheme of arrangement, and in such case, the judge shall grant a sufficient time for deliberating.

523. (1) If all the creditors agree to the composition, its approval by the judge shall be sufficient to make it valid. But if the composition is agreed to only by three-fourths in value of the creditors, the curators or the bankrupt shall, within the period of eight days, apply to the court for the approval thereof, by sworn application against the creditors opposing the composition or failing to attend the meeting prescribed in article 517.

(2)

In the absence of proof by the defendants of any deceit or gross misconduct, the court shall approve the composition.

(3)

A composition duly approved shall be binding on all the creditors.

524. (1) On the composition being approved, the bankrupt shall be deemed to be ipso jure rehabilitated.

(2)

The composition when approved shall have the effect of restoring to the bankrupt the administration of his property, under the conditions, if any, embodied in the instrument of composition.

(3)

Any stipulation contained in the instrument of composition, not being contrary to law, shall be valid. The instrument of composition may provide for the selection of one or more persons for the purpose of watching over the carrying out of the composition, of assisting at the sale of property if any such sale takes place, and of securing the distribution of the proceeds amongst the several creditors.

(4)

A stipulation that the bankrupt shall have no power to do any act, whether of administration or of alienation, without the consent of one or more persons appointed by the creditors, shall be a valid stipulation, and shall have effect even against third parties who have contracted in good faith with the bankrupt alone.

525. (1) If the composition provides for the abatement of a part of the debt, the bankrupt shall be discharged, even as to his future property, from the part abated:

Provided that such abatement and any time granted to the bankrupt for payment shall not operate in favour of any other person, being a co-debtor or surety jointly and severally liable with the bankrupt.

(2) The default in making payment according to the terms of the composition, shall be considered as a fresh bankruptcy, if the debtor continues to carry on trade.

526. Notwithstanding the composition, the right of action of the creditors for the whole amount of their debts against the co-debtors or sureties jointly and severally bound with the bankrupt shall remain unimpaired, even though such creditors may have assented to the composition.

Rendering ofaccounts by curators.

If composition isnot approved.

Property to be retained by bankrupt.

Redemption ofpledges.

Ranking ofcreditors.

Presentation of application by creditors.

Consideration of claims.

527. (1) The curators shall, within four days after the approval of the composition, render their final account; and they can be compelled to render such account at the instance of the bankrupt or of any other interested party.

(2)

The curators shall then, within the period of eight days, deliver to the bankrupt or to the person appointed under the composition all the bankrupt’s property, books, papers and other effects.

(3)

Upon such delivery, the functions of the curators shall cease.

1. If the composition is not approved, the curators shall, within the period of one month, proceed to the sale of the bankrupt’s property, under the authority of the court.
2. In all cases, the bankrupt and his family shall be allowed, with the approval of the judge, to retain the wearing apparel and other movable effects necessary for their personal use, regard being had to the condition and former circumstances of the bankrupt.
3. (1) The curators are authorized to redeem pledges, for the benefit of the estate of the bankrupt, upon payment of the respective debts.

(2) If the pledge is not redeemed by the curators, and is sold by the creditor for a price exceeding the debt, the surplus shall be collected by the curators; if the price realized is less than the debt, the creditor who had the pledge may prove and compete for the difference.

531. (1) Following the deposit of the decree relating to the examination of the claims, the judge shall proceed to the ranking of the creditors.

(2) Such ranking shall set forth the order in which the creditors shall be paid from the proceeds of the property sold, from the revenue of property attached by a garnishee order, and from any other funds which may have remained, or may at any time come in the possession of the curators, or otherwise exist in favour of the estate of the bankrupt, even though such moneys may not have been deposited in the Registry of the Court.

1. For the purposes of such ranking, the creditors shall, by letter of the registrar, be called upon to present in the registry, within fifteen days, the requisite demand, by means of an application, together with such other documents as may be necessary for the ranking.
2. After the presentation of the applications mentioned in the last preceding article, the registrar shall, by letter, summon the creditors, the curators and the bankrupt to appear before the judge

on the day appointed for the purpose, in order that their respective claims may be dealt with.

534. (1) Where there is no presumption of the bankruptcy being fraudulent, the bankrupt shall be entitled to an allowance out of his own property.

(2) The curators shall propose the amount of the allowance, and the judge shall fix the same having regard to the needs and the number of the bankrupt’s family, and to the extent of the loss which will thereby be occasioned to his creditors.

1. Creditors having pledges, privileges or hypothecs shall be ranked according to the law for the time being in force.
2. The creditors who fail to appear after the intimation prescribed in article 532 shall not be taken into account in the ranking of the creditors: but none of the creditors appearing after the said intimation shall receive payment of his claim unless he gives sufficient security, to the satisfaction of the curators, that he will contribute ratably in favour of those creditors who shall have failed to appear or are absent, in the event of their appearing within the period of one year from the day on which such security has been given.
3. In all cases of bankruptcy, no interest on the sums due by the bankrupt shall be allowed from the date of the declaration of bankruptcy made by the trader himself or as the case may be from the date of the judgment declaring the bankruptcy.

538. (1) When the ranking of creditors has been definitely settled, the registrar shall, by letter, call upon the creditors so ranked to appear on the day appointed by the judge for the examination of the accounts of the curators, and for considering whether the bankrupt ought to be rehabilitated to trade.

(2)

The rehabilitation shall be granted by a decree of the judge, provided there be no proof of any deceit or fraud on the part of the bankrupt.

(3)

The rehabilitation has the effect of discharging the bankrupt, with respect both to his person and to his after-acquired property, from all debts that could at any time previous to the declaration of bankruptcy have been claimed against him.

539. (1) The benefits granted by law in favour of bankrupts shall not apply in the case of fraudulent bankruptcy.

(2) A bankrupt shall be deemed to be a fraudulent bankrupt in each of the cases following:

Cases where trader may be adjudged a fraudulent bankrupt.

Times to be peremptory.

Actions barred by the lapse of five years.

Actions arising from bottomry contracts, etc.

(b)

if he has simulated any expenses or losses or if he fails to give a satisfactory explanation of the manner in which his receipts have been disposed of;

(c)

if he has concealed or removed any sum of money, or any debt due to him, goods, merchandise or other movable effects;

(d)

if he has made fictitious sales, transactions or donations;

(e)

if he has simulated collusive debts between himself and fictitious creditors, by simulated writings or by declaring himself debtor, without consideration or cause, in any public or private act;

(f)

if he has concealed or destroyed his books, documents or other papers relating to his accounts.

540. A bankrupt may in the cases following be adjudged a fraudulent bankrupt, unless he sufficiently proves that he had no intent to defraud -

(a)

if he has not kept books or if his books do not show the true state of his assets and liabilities;

(b)

if, on being lawfully summoned for examination, he fails to attend;

(c)

if he has not aided in the making up of the inventory.

OF PRESCRIPTION AND INADMISSIBILITY OF ACTION IN
CERTAIN COMMERCIAL MATTERS, OF THE JURISDICTION OF
THE CIVIL COURT, FIRST HALL, AND OF COMMERCIAL FEES

OF PRESCRIPTION AND INADMISSIBILITY OF ACTION IN
CERTAIN COMMERCIAL MATTERS

1. All times fixed by any express provision of this Code for the exercise of any action or right of recourse arising from commercial acts, are peremptory; and the benefit of the restitutio in integrum by reason of any title, cause or privilege whatsoever shall not apply.
2. Saving the provisions contained in articles 238, 239 and 263, actions arising from bills of exchange or from promissory notes shall be barred by prescription by the lapse of five years from the day of their maturity, and actions arising from drafts or cheques on bankers or cashiers shall be barred by prescription by the lapse of five years from their date.
3. Actions arising from contracts of loan on bottomry or from contracts of insurance shall be barred by prescription by the lapse of five years from the day on which the same could have been

exercised.

544. The following actions shall be barred by prescription by the lapse of the times stated hereunder:

545. No action shall lie

546. Save where the law expressly provides otherwise, the prescriptions established in this Code shall run against minors and persons interdicted, saving their right of relief against the tutor or curator.

OF THE JURISDITION OF THE CIVIL COURT, FIRST HALL

547. Commercial jurisdiction shall be exercised by the Civil Court, First Hall, in accordance with the provisions contained in the Code of Organization and Civil Procedure.

548. The following controversies are of a commercial nature:

Other matters cognizable by Civil Court, First Hall.

Amended by:XXIV.1995.362.

Commercial fees.

Substituted by:

XXIII. 2009.21.

Power of Minister responsible for justice to establish fees.

Amended by:

L.N. 4 of 1963; XXXI.1966.

XIII. 2008.2.

Contrary customs to be inoperative.

549. The Civil Court, First Hall, shall also take cognizance

(a)

of actions against agents or other persons commissioned by merchants, or their subordinates in regard only to transactions carried out in the ordinary course of the business of their principal; and of actions by the former against the principal;

(b)

of all matters relating to bankruptcy in accordance with the provisions contained in this Code.

1. It shall be possible for commercial fees, different from those established in the Schedule hereto, to be agreed between parties. The service provider shall inform his client of the applicable fee or the basis on which the fee is to be determined before the service is provided.
2. The Minister responsible for justice may, by notice in the Government Gazette, after hearing the Chamber of Commerce, Enterprise and Industry, amend or make additions to the Schedule of fees referred to in the last preceding article.

552. Any law or custom contrary to or inconsistent with the provisions of this Code shall have no effect.

SCHEDULE Schedules contained in s.1 of[Articles 550-551] Ord.II. of 1898, consolidated.

Amended by:XIII.1983.4;

IX. 2003.4;

L.N. 407 of 2007.

1. The activities of a person as a commercial agent are secondary where it may reasonably be taken that the primary purpose of the arrangement with his principal is other than as set out in paragraph 2 below.

2. An arrangement falls within this paragraph if

(a)

the business of the principal is the sale, or as the case may be purchase, of goods or services of a particular kind; and

(b)

the goods or services concerned are such that

(i)

transactions are normally individually negotiated and concluded on a commercial basis, and

(ii)

procuring a transaction on one occasion is likely to lead to further transactions in those goods or services with that customer on future occasions, or to transactions in those goods or services with other customers in the same geographical area or among the same group of customers, and that accordingly it is in the commercial interests of the principal in developing the market in those goods or services to appoint a representative to such customers with a view to the representative devoting effort, skill and expenditure from his own resources to that end.

3. The following are indications that an arrangement falls within paragraph 2 above, and the absence of any of them is indication to the contrary

(a)

the principal is the manufacturer, importer or distributor of the goods;

(b)

the goods are specifically identified with the principal in the market in question rather than, or to a greater extent than, with any other person;

(c)

the agent devotes substantially the whole of his time to representative activities (whether for one principal or for a number of principals whose interests are not conflicting);

(d)

the goods are not normally available in the market in question other than by means of the agent;

(e)

the arrangement is described as one of commercial agency.

4. The following are indications that an arrangement does not fall within paragraph 2 above

(a)

promotional material is supplied direct to potential customers;

(b)

persons are granted agencies without reference to existing agents in a particular area or in relation to a particular group;

(c)

customers normally select the goods for themselves and merely place their orders through the agent.

5. The activities of the following categories of persons are presumed, unless the contrary is established, not to fall within paragraph 2 above

-Mail order catalogue agents for consumer goods;

-Consumer credit agents.

Commissions On the purchase and sale of goods On the purchase of goods with the principal’s funds in hand .......... 2%

On the purchase of goods and on the drawing for the value thereof 8% On the sale of goods ..................................................................... 2% On attempted sale of goods

if the value be above €1,164,69 ........................................... ¼% if the value be €1,164,69 or less .......................................... ½% On the purchase and sale of sailing - or steam-ships (including brokerage), (from each party) ....................................................... 1¼%

Banking Transactions On drawing .................................................................................. ^1/8 to ¼% On remitting ................................................................................. ^1/8% On accepting ................................................................................ ^1/8% On negotiating .............................................................................. ^1/8 to ¼% On endorsement of bills of exchange ............................................ ^1/8% N.B.- If the drawing and remitting, or the accepting and

negotiating refer to the same transaction, the fee is only ................ ¼% On the purchase or sale of public funds

for funds quoted at above 75% of their nominal value,

on the nominal value ............................................................ ^1/8%

for funds quoted at below 75% of their nominal value,

on the nominal value ............................................................ ¹/16% On disbursements to travellers against letters of credit .................. ½% On collection, payment, or negotiating of coupons ........................ ^1/8% On collection of bills of exchange and remittances of the amount .. ^1/8% On collection of moneys in account current and remittance of

proceeds, or payments made on demand ........................................ ^1/8%

N.B. - The minimum rates above specified in the cases where the rate is not definitely indicated, apply to transactions the amount of which exceeds €232.94

To the freighter of a steamship or sailing-ship ............................... 2%

To the consignee, on the affreightment of a sailing-ship or steamship, if he procured the affreightment ................................... 1% On freights of importation, as per manifest, both if the freight be

payable at the port of destination and if paid in advance ............... 2%

On procuring freights to steamships or sailing-ships for exportation, as per manifest .......................................................... 3% On disbursements to steamships or sailing-ships ........................... 2% On disbursements to steamships or sailing-ships if under average .. 2½% On discharging and reloading, or on reshipping of goods on sailing-ship or steamship with or without average, if the value of the goods be under €4658.75 ......................... ½% if the value of the goods be above €4658.75 ......................... ¼% On transhipment of packages - according to the goods and the number of packages for each package ................................................................. 0.01c to 0.06c for bales or cases of textiles, for each bale or case ........................................................... 23c for iron, -per ton ................................................................. 23c On the sale by public auction of goods or articles landed from sailing-ships or steamships under average ..................................... 2%

For representing one or more persons before courts of justice if the amount in litigation exceeds €2,329.37 in the court of first instance ............................................ 2% in the court of second instance ........................................ 1% if the amount in litigation is €2,329.37 or less in the court of first instance ............................................ 3% in the court of second instance ........................................ 2%

N.B. - If representation is in second instance only, the fee is if the amount in litigation exceeds €2,329.37 ....................... 2% if it is €2,329.37 or less ....................................................... 3% On deposits in court as security for suits (besides interest at 6% per annum) for a period not longer than one year .................................... 3% for any further period not exceeding one year ....................... 2% On receipt of telegrams for transmission abroad per telegram ........................................................................ 58c On giving orders to steamships, -for each order ............................................ 1.16c to sailing-ships, -for each order .......................................... 58c On procuring orders, receiving and delivering goods, adjusting accounts, procuring acceptances, or collecting and remitting ......... 3% for del credere on the sale of goods on credit ....................... 2% On guarantees in favour of any person - per month ........................ ¼% On guarantees in favour of any person, accompanied by a deposit (besides ¼% per month), interest, per annum, of ........................... 6%

On the sale and purchase of goods (from each party) ..................... ½% On the sale and purchase of goods of small value, such as pozzolana, soda-ash, firewood, mineral salts, and the like articles (from each party) .......................................................................... 1%

N.B. - In the case of goods sold under discount, the brokerage is

due on the net amount of the invoice On exchange of goods - on the value of every article (from each party) ........................................................................................... ³/8%

On the purchase and sale of any stock in public funds to bearer

on the real value (from each party) ............................................... 1%
On the purchase and sale of foreign bills of exchange, discount of
bills in the market, and of coupons - on the real value (from each
party) ........................................................................................... 1%

On the purchase and sale of gold and silver bullion, or of State or

foreign coins - on the real value (from each party) ........................ ½%
On whole or partial affreightment of sailing-ships or steamships payable by the master ................................................................... 2%

On affreightment of sailing-ships or steamships á la cueillette (ship receiving goods) .................................................................. 3% PART IV

FEES OF SURVEYORS L For a survey on the condition of a sailing-ship or on the condition of the bottom or machinery of a steamship, with or without average

for the first survey ............................................................... 4.89
for any further survey .......................................................... 2.45

For a survey on goods if the value does not exceed €232.94 ................................. 1.22 if the value is above €232.94 but does not exceed €465.87 ... 2.45 if the value is above €465.87

for the first survey .......................................................... 4.89 for any further survey ..................................................... 2.45 For a survey, on board, on condition of the cargo and stowage

thereof for the first survey ............................................................... 4.89 for any further survey .......................................................... 2.45

N.B. - All the said fees are due to each surveyor and for attendances within the Grand Harbour or within the Marsamxett Harbour; for attendances outside the said harbours, such fees shall be doubled. The said fees also include the fee for the drawing up of the report, but transport and other expenses incurred by the surveyors in the discharge of their duties, shall be refunded to them, in addition to the fees above specified If the time employed by the surveyors outside the said two harbours exceeds one day, and their continual attendance should be required beyond that term, - in addition to the expenses incurred, for each day already commenced .................................... 12.23

On appraisement of a sailing-ship or steamship, her tackle and

apparel, - besides the expenses incurred on the first € 1,164.69 .......................................................... 1% on the second €1,164.69 ..................................................... ¾% on any further sum ............................................................... ½%