Cap. 204 чл. 17Monetary operations and other functions of the Bank.

(1) In accordance with the Treaties and the Statute, in order to achieve its objectives and to carry out its functions, the operations of the Bank shall include the following:

(a) opening of accounts for persons as provided in this Act, and, in special cases for other persons with the prior approval of the Board;

(b) maintenance of accounts with central banks or other domestic or foreign credit institutions and agents and acting as correspondent, banker or agent for any central bank or other credit institution or other monetary authority and for any international financial institution established under international treaties;

(c) subscription to, purchasing, selling, discounting or re-

discounting equity, debt or other financial instruments as may be approved by the Board, provided that any equity interests in an undertaking or immovable property as the Bank may in any way acquire in the course of the satisfaction of debts due to it shall be disposed of at the earliest suitable moment;

(d) issuing, purchasing, selling, discounting or re-discounting financial instruments bearing the Bank’s name in such form and for such terms and maturities as may be approved by the Board;

(e) granting to any credit or financial institution in Malta loans and advances against adequate security;

(f) entering into repurchase and reverse repurchase agreements; and

(g) when it deems such action necessary to safeguard financial stability or in other exceptional circumstances, granting a loan or advance to any credit institution incorporated in Malta against such forms of security as the Board may consider appropriate.

(2) In accordance with the Treaties and the Statute, credit institutions may be required to hold minimum reserves with the Bank, and to report thereon.

(3) In managing and maintaining the financial assets, the Bank may, in accordance with the guidelines and instructions of the European Central Bank, carry out any transactions that it deems suitable, and in particular it may:

(a) hold, manage, acquire and sell, spot and forward, all types of financial assets and precious metals; and

(b) carry out any type of financial transactions with domestic or foreign institutions or with international organisations, including borrowing and lending operations.

(4) The Bank may invest staff and pension funds and other internal funds of the Bank in financial instruments approved by the Board.

(5) The Bank may purchase, acquire or lease immovable property as the Bank may consider necessary or expedient for the provision, or future provision, of premises for the conduct of its business or for other similar requirements incidental to the performance of its functions under this Act.

(6) Subject to any other provisions of this Act, the Bank may generally conduct business as a bank, and do all things as are incidental to or consequential upon the exercise of its powers or the discharge of its duties under this Act.

(7) (a) The Bank shall, in the exercise of its functions as a central bank under this Act, enjoy a special privilege over any funds held in the accounts of the Bank as well as any securities, precious metals or any other assets belonging to its debtors and deposited with it as well as any other funds or other assets pledged in its favour by its debtors or by third parties to guarantee the obligations of its debtors.

(b) The special privilege granted by this sub-article shall rank before any other privilege under any other law and notwithstanding the provision of any other law the funds and other assets subject to such privilege shall be applied to the satisfaction of the debt due to the Bank before any other claim.

(c) The Bank may, subsequent to prior notification to the debtor, apply any such funds or assets in satisfaction of the debts due to it without the necessity of any authorisation or sanction by any court or other authority, and may also, for such purpose, dispose of any such assets so held by it or pledged in its favour and apply the proceeds from such disposal directly to satisfy its claims.

(8) The rights of the Bank of any collateral security provided to it by a debtor or other counterparty shall not be affected by the insolvency proceedings against such debtor or counterparty, and such collateral security may be realised by the Bank in satisfaction of its rights.