The applicant trucking company sought to terminate a factoring agreement with the respondent and requested a buy-out statement, a release letter, and the discharge of a PPSA registration.
The respondent refused, arguing it owned the purchased invoices absolutely and had no obligation to sell them back.
The court held that the PPSA applied to the transaction and, pursuant to section 56, the applicant was entitled to pay the outstanding obligations and have the registration discharged.
The court ordered the respondent to provide the buy-out statement and, upon payment, release the customers and discharge the PPSA registration.
