Cap. 16 Art. 2095JReservations.

(1) Nothing in this Title shall limit or affect the application of the laws of Malta which may implement the Financial Collateral Arrangements Directive (2002/47/EC), as the same may from time to time be amended, in so far as it applies to particular property which may be the subject of a title transfer financial collateral arrangement.

(2) A transfer of an obligation by way of security shall not affect the operation or effect of the legal or contractual terms of the underlying debt or other right being the property transferred by way of security.

(3) A debtor of a debt or other right may, in accordance with article 1996A, validly waive his rights of set-off or other defence vis-a-vis his immediate creditor when such debt or other obligation is the subject of a transfer by way of security and such debtor shall not, thereafter, be entitled to raise any defence against any claim made by a transferee of the assigned debt and this notwithstanding the absence of any notice or acknowledgement in terms of article 1471.

(4) The provisions of article 1483 shall not apply in the case of an assignment by way of security.

Title XXIV

OF THE BENEFIT OF SEPARATION OF ESTATES