Marginal note:Notice to take proceedings
114. (1) A person who may serve a demand for information in respect of a security notice in relation to an interest or a share therein pursuant to subsection 113(1) may
(a) serve on the secured party under the security notice a notice to take proceedings, in prescribed form, directing that secured party to apply to the court within sixty days after the day on which the notice to take proceedings is served, for an order substantiating the security interest claimed in the security notice; or
(b) commence proceedings in the court, requiring the secured party to show cause why the registration of the security notice should not be cancelled.
Marginal note:Order to shorten notice to take proceedings
(2) The court may, by order, on the ex parte application of a person who proposes to serve a notice to take proceedings under subsection (1), shorten the sixty day period referred to in paragraph (1)(a) and, if the order is made,
(a) paragraph (1)(a) shall, in relation to that notice to take proceedings, be deemed to refer to the shorter period; and
(b) a certified copy of the order shall be served with that notice to take proceedings.
Marginal note:Order to extend notice to take proceedings
(3) The court may, on the application of a secured party served with a notice to take proceedings, extend the period for applying to the court referred to in paragraph (1)(a), whether or not that period has been shortened under subsection (2).
(4) A notice to take proceedings is served for the purposes of this section if it is sent by registered mail or delivered to the secured party at the official address for service in respect of the security notice according to the records of the Registrar.
Marginal note:Cancellation of registration of security notice
(5) The registration of a security notice shall be cancelled on submission to the Registrar of a statutory declaration showing that
(a) a notice to take proceedings was served in accordance with this section; and
(b) no application was commenced in accordance with the notice to take proceedings or within the period extended pursuant to subsection (3) or an application so made was dismissed by the court or discontinued.
Marginal note:No further registration after cancellation
(6) Where the registration of a security notice in respect of a security interest is cancelled pursuant to subsection (5) or (7), the secured party under the security notice may not submit for registration under this Division another security notice in respect of that security interest without leave of the court to do so.
Marginal note:Cancellation of registration on order of court
(7) The registration of a security notice shall be cancelled where there is submitted to the Registrar a certified copy of an order or judgment of a court directing the Registrar to do so, whether as a result of proceedings taken under this Division or otherwise.
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