Once a loan or obligations which involves a PPSR registration is repaid or the agreement has come to an end, the business or individual who has registered the PPSR registration has a statutory obligation to remove this registration (in addition to the contractual obligation).
In most cases the secured party may have just forgotten, but as this the main cause of litigation matters in this space, it is important that your business have procedures in place to make sure you comply with your removal obligations. Some examples of tasks you can add to your procedure include:
- Regularly review the registrations you have in place;
- Diarise final payment dates for any lending arrangement or security agreement to remind you to remove; and
- Ensure your address and contact details are kept up to date on the PPSR.
Click here to access a resource on the PPSR website providing information on steps you need to follow to keep your PPSR registration up to date.