Releasing security

Discharge and release of security

Practice Note: Releasing security provides information on how to release security, including consideration of the equity of redemption, pre-release checks, choosing the appropriate release document, and any necessary filings.

In order to deal with the discharge and release of security, it will be necessary to consider:

1. •

   the conditions to be satisfied before any release is effected, eg the redemption amount to be paid or consents to be obtained

2. •

   notification to relevant third parties that the release has been effected, eg where a legal assignment by way of security of a contract has been released by re-assignment to the relevant security provider

3. •

   the nature of the security interest and the method to release it (see: Choosing the appropriate document to release the security), and

4. •

   the removal of any registration made at the time that the security interest was created (see: Updating the registers following the release of security)

Once a secured debt has been fully