A review of the 1975 amendments to the Maltese hypothecary system

Abstract

By far the most radical and important change which Act LVIII of 1975 has brought about is that of allowing creditors of debts. already secured by general hypothecs to further register a special hypothec over one or more particular immovables belonging to their debtor. This novel principle, which has been introduced by our legislator in order to counteract in some way the grave prejudice caused to the rights of general hypothecary creditors by the abolition of the 'droit de suite:' with regard to general hypothecs, is enshrined in Section 2I20(I) of the Maltese Civil Code: "The creditor of a debt secured by a general hypothec and whose rights are not otherwise adequately secured shall have, and may cause to be registered, as a further security of the same debt, a special hypothec over such of the immovable property of the debtor which are of a kind referred to in Section 2II6 and which are of a value sufficient to secure the debt as provided in Section 2I68."