(1)  Whenever a registered mortgage or encumbrance is intended to be discharged wholly or partially, the registered mortgagee or encumbrancee shall execute a discharge in an approved form.

(2)  On the registration of a discharge of mortgage or encumbrance, the mortgaged or encumbered estate or interest shall, to the extent specified in the discharge, cease to be charged with any money secured by the mortgage or encumbrance.