PPSNs are discharged using the standard discharge form. Like all other land titles documents, PPSNs may be either fully discharged or discharged in part.
An agent may execute the discharge, provided they are the same agent (the same person) who signed the PPSN.
Demand process
Where the registered owner believes that the interest claimed is invalid then the demand process may be used to discharge or amend the PPSN. A review of section 49(7) of The Personal Property Security Act will be required to confirm whether this process is available in the circumstances.
The demand process is:
1. Prepare the demand letter. This will be submitted later with the request to vacate as part of the evidence of proof of service.
The demand letter must comply with the requirements set out in section 49(8) of The Personal Property Security Act.
2. Serve the secured party with the demand letter.
i. The demand letter must be served in accordance with section 49(10) of The Personal Property Security Act. Once the demand letter has been served the secured party has 20 days to begin court proceeding and register proof of same as a Miscellaneous targeting the PPSN. Should this proof be received the PPSN will not be vacated.
3. Register request to have the PPSN vacated.
i. After the 20 days have passed, prepare a request to vacate the PPSN using the Request form (FORM 15.1).
ii. Submit the Request for registration along with proof of service of the demand letter as supporting evidence. This is done by Affidavit of Service with the demand letter as an exhibit to same.
Certain types of PPSN cannot be removed using this process. The district registrar will not remove a PPSN that relates to a security agreement registered under The Corporations Act that provides for the registration of a security interest, where the registration is continued under The Personal Property Security Act.
There is also a similar process for the removal of financing statements registered in the Personal Property Registry. See section 50, The Personal Property Security Act.