MALTA Law and Practice Contributed by: Damien Degiorgio and Ramona Galea, Fenech Farrugia Fiott Legal
4. Planning and Zoning 4.1 Legislative and Governmental Controls Applicable to Strategic Planning and Zoning The Development Planning Act, Chapter 552 of the Laws of Malta, establishes an Executive Council which has monitoring and enforcement powers in relation to planning and zoning areas across Malta. These powers give the Executive Council, or any person authorised by it, the right of entry to any premises to ascertain whether an illegal development has taken or is taking place, and a general right to do anything that verifies such illegal development. The Council is also responsible with monitor - ing all activities falling within the remit of the Development Planning Act such as licences, permits and certificates issued by the Authority, to ensure that all development activities are car - ried out in terms of the necessary legal require - ments, and may for such purpose request and obtain the assistance of the police force, and that of any governmental authority scrutinising such activities. If the Executive Council becomes aware that a development is being executed without having the necessary permit/licence or that any condi - tion subject to which the permission was grant - ed is not being complied with, it shall have the right to issue a stop notice to any such person carrying out such development. Further action may also be taken by the Executive Council should the development not be discontinued or stopped within the stipulated time period speci - fied within the enforcement notice. The general public can also choose to file a report to the Planning Authority, informing it of any suspected illegal developments.
privilege, whereas, for hypothecs, priority and subsequent payment of debt is made according to the order of registration. 3.8 Lenders’ Liability Under Environmental Laws Lender holding/enforcing security over real estate subject to pollution must essentially refer to the Crimes Against the Environment Act, Chapter 522 of the Laws of Malta. Environmen - tal liability will ensue depending on the type of action that has been committed and therefore lenders should take cognisance of involuntary offences stipulated under the aforementioned law. In this regard, lenders must ensure that they do not commit an unlawful offence against the environment through imprudence or negligence upon taking possession of a property. Such lenders shall be required to act with the diligence and prudence of a bonus paterfamilias and take all necessary measures to ensure that the land is not polluted any further, or that unlawful acts or damage are not committed. 3.9 Effects of a Borrower Becoming Insolvent Where a borrower becomes insolvent and its assets are placed under liquidation, the lender shall be included in the ranking of creditors. The type of security interest will determine the lend - er’s ranking amongst the other creditors, espe - cially because privileged securities take priority over unprivileged securities. 3.10 Taxes on Loans The only transfer to be paid is that as explained within 2.10 Taxes Applicable to a Transaction .
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