Section 3: Issue and effect of discharge certificate

(1) Immediately after full settlement or repayment of a loan (including any interest thereon) is made by the borrower to the bank, the bank shall issue a discharge certificate to the person who obtained the loan and shall send a copy of the discharge certificate to the licensing authority.
(2) On the receipt of the discharge certificate, the licensing authority shall make an entry in that behalf in the register relating to the motor vehicle and thereafter the owner of the motor vehicle shall be free to dispose of the motor vehicle without having to comply with the requirements laid down in the foregoing provisions of this Act.