What do you do if you, or your company has been given a charge over your, or the company’s, assets and that charge has been registered on the Personal Property Securities Register, the loan has then been repaid but the lender either neglects or refuses to provide a release of that registration?
In recent proceedings in the Supreme Court of New South Wales highlights the manner in which the borrower can obtain a release of the registration of the charge on the PPSR has been described.
In the proceedings, the borrower had borrowed money from a lender and as part of the security for the borrowings, the borrower provided a charge over its assets in favour of the lender.
The lender duly registered that charge on the PPSR.
When the loan had been repaid, the borrower requested the lender to remove the charge from the PPSR.
The borrower sent not less than five emails to the lender seeking the release of the charge over its assets.
When no response was provided the borrower forwarded an “amendment demand” in accordance with Section 286 and Section 287(c) of the Personal Property Securities Act.
Once the “amendment demand” is served in accordance with those provisions of the Act, then the borrower may, pursuant to Section 182 of the Act after a period of five (5) business days from the service of the“amendment demand”, make an application to the Court for the removal of the charge.
In these particular proceedings, the Court made an Order that the charge be removed from the PPSR and also made an order that the lender pay the costs incurred by the borrower in making such application to the Supreme Court.
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