How to Release a PPSR Security Interest Without the Token
Understanding PPSR Registration Tokens and Access Codes
In the Personal Property Securities Register (PPSR), each security interest registration is protected by a unique registration token (a 16-digit alphanumeric code). This token functions like a password – it’s required (along with the registration number) to amend, transfer, or discharge the registration. When a financing statement is first registered, the PPSR system emails the token to the secured party’s address for service on record. In addition, registrations are associated with a Secured Party Group (SPG), which has its own SPG number and an SPG access code (a 12-character password) that can also be used to manage all registrations under that group.
Problem: If a previous lawyer or agent created the PPSR registration and is refusing to hand over the token (or SPG login details), the current secured party effectively loses direct control of the registration. Without the token or SPG access code, you cannot use the PPSR online portal to discharge (“end”) or amend the registration in the ordinary way. This situation must be resolved through official recovery processes or legal remedies.
Step 1: Attempt to Recover the Token or SPG Access
A. Retrieve the Token via the PPSR Portal (if possible): If the secured party (your client) still has access to the Secured Party Group account or email: log in to the PPSR and use the “Request a new token” function. You will need the registration number and either the SPG’s number and access code. The PPSR will email a new token to the registered address for service upon request. If your client has the SPG credentials, they can also directly log in and discharge the registration online (there’s no fee).
B. Recovering SPG Credentials from AFSA: If the SPG number or access code is unknown (e.g. the prior lawyer created the SPG and kept these details), the secured party can contact AFSA (the PPSR registrar) to retrieve or reset them. AFSA advises that if you forget your SPG number, you must send a written request to AFSA from the email address for service listed in the SPG (or include that address in your correspondence). Similarly, if you cannot reset the SPG access code online (for example, if you don’t have a PPSR account administrator), you should contact AFSA in writing from the secured party’s address for service to request a reset. AFSA’s National Service Centre can be reached at 1300 007 777 or via email at enquiries@ppsr.gov.au for guidance on the process. Be prepared to provide proof of your client’s identity and entitlement – for instance, a letter on the secured party company’s letterhead (signed by an authorized officer) explaining the situation, quoting the PPSR registration number, and confirming that your client is the secured party of record. AFSA will typically only release SPG details or reset codes to the official email on file or to a verified secured party representative.
C. Update Address for Service if Necessary: If the previous lawyer used their own email as the PPSR address for service, it complicates recovery. In such cases, consider first formally requesting that the lawyer cooperate (noting that a secured party is legally obliged to facilitate release of the security interest once the debt is paid – see PPSA s 151). If they remain uncooperative, you may need to skip ahead to the amendment demand process below. (AFSA generally cannot unilaterally change the address for service or give out tokens to a third party without proper authorization or a court order.)
Step 2: Use the PPSR Amendment Demand Process (via AFSA)
If retrieving the token or SPG access is not possible, Australian law provides an administrative process to override or remove a registration when the secured party doesn’t cooperate. This is governed by the Personal Property Securities Act 2009 (Cth) (PPSA) – specifically the Amendment Demand procedure (sections 178–180 PPSA). The steps are as follows:
Issue an Amendment Demand: A person with an interest in the collateral (typically the grantor/debtor who owns the property, or another secured party with an interest) must send a written amendment demand to the secured party’s official address for service. In this demand, you formally request discharge of the PPSR registration. By law, the demand must include the PPSR registration number, state that you are requiring the secured party to remove (end) the registration, and include your contact details. AFSA provides a useful template for an Amendment Demand letter. Make sure to send the demand to all addresses for service listed on the registration (e.g. the email and any postal address on the PPSR search certificate). This demand is made under PPSA section 178, which defines an “authorized amendment” as one to remove a registration that is no longer justified – for example, because no collateral described in the registration secures any obligation owed to the secured party (i.e. the underlying debt has been paid). In your scenario, if the loan or obligation has been satisfied or the secured party simply consents to release, that condition is met.
Wait 5 Business Days: Once the demand is sent, the PPSA requires a short waiting period. The secured party has 5 business days to comply – i.e. to lodge a financing change statement ending the registration. (Five business days is the minimum; they can also voluntarily remove it sooner.) If the secured party or their lawyer does provide the token or discharges the registration in this time, the issue is resolved. Most secured parties are legally expected to remove a registration “as soon as practicable” once the security interest is extinguished – generally within 5 business days. Failing to do so for consumer property or serial-numbered collateral can even attract a civil penalty under PPSA s 151(2). Here, however, your client wants to comply but cannot, so after 5 business days of no action, you move to the next step.
Apply to the Registrar of PPSR (AFSA): If the registration still isn’t removed after 5 business days, the interested party can apply to AFSA’s Registrar to intervene. This is done by submitting an Amendment Statement – Application Form (available from the PPSR website) to AFSA. In the application, you will include details of the registration and evidence of the amendment demand you served (e.g. a copy of your demand letter and proof of delivery/email to the secured party). The Registrar will then formally notify the secured party that a request to remove the registration has been made (AFSA issues an “Amendment Notice”). The secured party is typically given a final opportunity (a further deadline, often ~10 business days) to respond or object. If no objection or court action is initiated by the secured party, the Registrar can proceed to deregister the security interest – i.e. remove or amend the registration as requested. In practice, so long as your paperwork is in order and the secured party does not legitimately contest the removal, the Registrar will likely order the registration ended. This administrative route is provided by the PPSA (see s 179–180) to avoid the cost of court in straightforward cases of non-response.
Timing and Outcome: The AFSA/Registrar route has no filing fee and is designed to resolve the issue without litigation. However, be aware of timing – the end-to-end process can take several weeks or even months. This includes the initial 5-day wait, time for AFSA to process your application, the notice period given to the secured party (at least an additional 5 business days, often longer), and the Registrar’s decision-making time. If the matter is urgent (for example, a pending transaction requires immediate release of the security), you might not want to wait for this administrative timeline.
Tip: All required forms and templates can be found on the official PPSR website. See the “How to dispute a PPSR registration” guidance and the Amendment Statement Application Form on ppsr.gov.au. Ensure every step (demand notice, wait period, application) complies strictly with the PPSA and Registrar’s requirements, as a misstep can delay the outcome. If AFSA grants the application, they will effectively force the discharge by registering a financing change statement to remove the security interest on your client’s behalf.
Step 3: Seek Court Intervention (if necessary)
If the administrative avenue is too slow or if there’s any dispute over the removal, your client can turn to the courts for relief. The PPSA expressly allows an interested party to apply to a court for an order removing or amending a registration (this can be done instead of or even during the Registrar application process). In an urgent scenario – for example, a settlement is being held up by the lingering PPSR registration – a court order can compel the obstinate former lawyer (or the secured party of record) to provide access or to authorize the Registrar to discharge the registration.
Key points regarding court remedies:
Which Court & Jurisdiction: Since the PPSA is Commonwealth law, the Federal Court of Australia and state or territory Supreme Courts have jurisdiction to hear such applications. In practice, secured parties often approach a superior court for an injunction or order under the PPSA. For instance, in National Australia Bank Ltd v Garrett [2016] FCA 714, the secured party (a bank) obtained a court order to remove a PPSR registration after the registrant refused to comply with an amendment demand. Courts have recognized an inherent power to prevent abuse of the PPSR and can order the Registrar of Personal Property Securities to deregister an interest that is wrongfully or no longer validly held.
Basis for Court Order: You would typically file an application supported by affidavit evidence showing that: (a) your client is the true secured party (or otherwise has standing as an interested party in the collateral); (b) the security interest should be released (e.g. the underlying debt has been paid or the registration is otherwise unauthorized/extinguished); and (c) the party in control of the registration (the former lawyer or firm) has failed or refused to effect a discharge. The court can then order that the PPSR registration be removed or make any other appropriate orders (such as compelling the handover of the access token or SPG credentials). Under PPSA section 182, a court may direct the Registrar to register a financing change statement to amend or end the registration. In plainer terms, the court can step in to force the cancellation of the PPSR entry in the interests of justice, even if the token is withheld.
Time and Cost: Court proceedings will involve filing fees and legal costs, but they can be much faster than the AFSA route if time is of the essence. A clear-cut case (where the obligation is indisputably satisfied and the only issue is the missing token) may be handled summarily. Courts may also award costs against a party (for example, against a recalcitrant secured party or agent) if they find the failure to release the security was improper. Notably, the PPSA also includes potential civil penalties for failing to discharge certain registrations on time (e.g. s 151(2) for consumer goods), and the risk of such liability can be persuasive in encouraging cooperation.
Additional Considerations and Preventative Measures
Official Forms & Contacts: Ensure you use the correct forms. The Amendment Demand does not have a prescribed form but must meet PPSA requirements – use the AFSA sample letter as a guide. The Amendment Statement Application Form (to the Registrar) is available on the PPSR website (usually as a PDF to be emailed or mailed in). For any uncertainties, contact the AFSA PPSR Support line (1300 007 777) or email enquiries@ppsr.gov.au for assistance – they can confirm procedural details (though they cannot give legal advice). Always keep records of all communications (e.g. proof of sending the amendment demand and any responses).
Proof of Authority: Since you are acting as the lawyer for the secured party, have your authority to act well-documented. AFSA or a court may require evidence that you represent the secured party (a simple authorization letter or a notarized statement from the secured party’s director may suffice if needed). When submitting an amendment statement to AFSA, it’s the interested party (often the grantor) who applies – but you can indicate the secured party’s consent or inability to act. If going to court, you’ll need affidavit evidence from the secured party explaining the background and the other lawyer’s refusal to cooperate.
Future Token Management: Once you regain control, advise your client to update the PPSR records. They can register a new secured party group (under their direct control) and transfer the registration to that group for any remaining term – this prevents recurrence of the problem. In the PPSR system, anyone with the current token or SPG access can transfer a registration to a new SPG. After resolving this dispute, your client should ensure that the address for service is one they control (e.g. a company email) and keep copies of all future PPSR tokens. This will avoid dependency on external parties for critical access.
References: All guidance above is based on the PPSR official resources and the PPSA law. For detailed steps, see AFSA’s How to dispute a PPSR registration guide and Registrar’s Practice Statement No.4 on the Amendment Demand process. Relevant legal provisions include Personal Property Securities Act 2009 (Cth) sections 178–182 (amendment demands and Registrar/court powers) and section 151 (obligation to discharge within 5 days in certain cases). Always ensure compliance with these provisions when seeking to amend or end a registration. With a combination of the above administrative and legal remedies, your client (as the secured party) can obtain release of the security interest even without the original token, thereby restoring their control over the PPSR registration and fulfilling their obligations to discharge the security interest.
Sources:
PPSR Official Guidance – “Request a new registration token” (AFSA); “Your SPG number and access code”.
PPSR Official Guidance – “End a registration” (how to discharge, need token or SPG).
PPSR Official Guidance – “How to dispute a PPSR registration” (Amendment Demand process).
PPSR Amendment Demand Template and AFSA Amendment Statement Form.
ERA Legal update on PPSA Amendment Demand (steps and legal basis).
Personal Property Securities Act 2009 (Cth) – especially s 178(1) (right to demand amendment) and s 179–182 (Registrar and court powers).
Case example: NAB v Garrett [2016] FCA 714 – court confirmed power to order removal after failed amendment demand
_______________________________________________________________________________________________________________________________________________________________
For more information, please contact Gavin McInnes on 07 3367 8681 or gmcinnes@grmlaw.com.au.
The information contained in this article is general in nature and cannot be regarded as anything more than general comment. Readers of this article should not act on the basis of this comment without consulting one of GRM LAW 's legal practitioners who will consider their particular circumstances.
Expertise
GRM LAW has a wide range of experience assisting companies in all aspects of banking & finance, business, corporate, property, managed funds and IT law.
Not only will you find that GRM LAW is likely to have assisted someone in your exact situation, but you’ll find that a GRM LAW lawyer can distill a complex legal issue into a set of actionable options for you to consider.
