Change demands

A change demand is where a debtor, or other party with an interest in the collateral, demands registration of a financing change statement (to amend or discharge the financing statement). 

This may be for one of several reasons given under section 162 of the Personal Property Securities Act 1999 (PPSA).  The reasons include the following:

• all the obligations under the security agreement have been performed (e.g. the debtor has fully repaid the loan and the financing statement should be discharged)
• the secured party has agreed to release part or all of the collateral
• the collateral described in the financing statement includes an item that is not collateral in the security agreement
• no security agreement exists between the parties
• the security interest is extinguished in accordance with the PPSA.

The basic steps in the change demand process

1. Before lodging a change demand, the debtor or a person with an interest in the collateral must first give written notice to the secured party of their demand.
2. If, after 15 working days, the secured party has not responded to this demand the debtor or interested party may then lodge a change demand on the Personal Property Securities Register.
3. The secured party has a further 15 working days to either:
   
   • accept the change demand (online at www.ppsr.govt.nz) or
   • obtain a court order to maintain the registration (Refer to sections 162 - 169 of the PPSA for information relating to obtaining that court order).
   Otherwise the change demand will automatically be accepted.

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