Cap. 12 Art. 905Special rules respectingsecurity.

In the absence of any special provisions to the contrary in regard to security, the following rules shall be observed:

(a) the Government of Malta is exempt from giving any security whatsoever prescribed or required;

(b) churches or other pious institutions or bodies corporate may, in matters in which they are concerned, and after having obtained the requisite authority, give a hypothecary security affecting property belonging to them, in lieu of any other security prescribed or required;

(c) in the case of a deposit representing the proceeds of a sale of immovable property, the person applying for the withdrawal of such deposit may be allowed to give a hypothecary security on his own property, if he shows to the full satisfaction of the court, in proceedings taken against the party in whose favour the security is prescribed or required, that he possesses sufficient immovable property, situate in Malta, to safeguard the interest to be secured; the costs of such proceedings shall be borne by the plaintiff, saving his right, if any, to recover them from any person liable therefor;

(d) if a surety after being accepted becomes insolvent, another shall be produced;

(e) (i) the surety shall enter into a bail-bond in the registry of the competent court;

(ii) a bail-bond shall also be entered into by the principal debtor where he is required expressly to bind himself, even in the case of a juratory caution or a hypothecary security;

(iii) in either case the obligation on the bond may be enforced by personal arrest;

(f) it shall be lawful for the surety, at any time, to release himself from his obligation, by substituting another sufficient security;

(g) any person interested may cause the said obligations, as well as the hypothecary security referred to in paragraphs (b) and (c), to be registered in the Public Registry.