From time to time you will come across a situation when a registered Security Item against a loan is no longer to be used as security for the loan, or the Security Item needs to be released.
On the Security Item form, General page, there is a check box “No longer in use, e.g. defunct or released from security?” that can be used to say whether the security is no longer in use.
The example below is for a Motor Vehicle security that is no longer in use.
Security Item form, General Page
Tick the, “No longer in use, e.g. defunct or released from security?” check box is ticked and you can also enter a Reason that the Security Item is no longer in use.
The drop down list for this field can be defined in the “SecItemDefunctReason” Information List .
Security Statements form, Security Items page
You will notice that the Security Item is defunct i.e no longer in use, and that it will have a line through it.
Security Items flagged as Defunct are not included in the total value for the Security Statement.
Where a Security Item has been updated to Defunct, an amending transaction will be registered on the PPSR next time a PPSR G2B update is undertaken.
Trade In Flag
If a Security Item is flagged as being a Trade In (as shown in the first screenshot above), it allows the Security Item to be used in documents, such as a Loan Contract, but not registered on the PPSR. Its value is also not included in the Total Value for the Security Statement.