When all obligations under a PPSA (security agreement) are satisfied, where the collateral description in the registration is broader than in the security agreement, where the collateral description does not distinguish between original collateral and proceeds, where the secured party has agreed to release all or part of the collateral, or no security agreement exists between the debtor and the secured party, the secured party  who registered the interest must discharge or amend it (Section 50 (2) and (3) PPSA).

If the secured party does not discharge or amend the registration after obligations have been satisfied, the debtor or another person with a legal interest in the property of the debtor, may serve a written demand to discharge or amend to the secured party. Service may be personal service or by registered mail in accordance with section 68 of The PPSA.

If the secured party does not discharge or amend the registration to comply with the demand or obtain a court order continuing the registration within the fifteen day period prescribed in the Act, after the period has expired the debtor or other person who has made the demand may register a Financing Change Statement to discharge or amend the registration. The Financing Change Statement must be accompanied by a copy of Demand to Secured Party and Proof the Demand was served.

NOTE:

• Section 50 of the PPSA cannot be followed for Commercial Lien registrations.  The remedy for a debtor or anyone claiming proprietary interest on the goods set out on a commercial lien can be found in section 20 of The Commercial Liens Act.  For this, the debtor may apply to the Court of King’s Bench to resolve disputes concerning the existence of the lien or amount secured by the lien.
• For a compulsory discharge pertaining to judgments see Section 28 of The Enforcement of Money Judgment Act, 2012.