63 (1) Upon default under a security agreement, the secured party may dispose of any of the collateral in its condition either before or after any commercially reasonable repair, processing or preparation for disposition, and the proceeds of the disposition shall be applied consecutively to, (a)  the reasonable expenses of the secured party, including the cost of insurance and payment of taxes and other charges incurred in retaking, holding, repairing, processing and preparing for disposition and disposing of the collateral and, to the extent provided for in the security agreement, any other reasonable expenses incurred by the secured party; and (b)  the satisfaction of the obligation secured by the security interest of the party making the disposition, and the surplus, if any, shall be dealt with in accordance with section 64.  R.S.O. 1990, c. P.10, s. 63 (1). Methods of disposition (2) Collateral may be disposed of in whole or in part, and any such disposition may be by public sale, private sale, lease or otherwise and, subject to subsection (4), may be made at any time and place and on any terms so long as every aspect of the disposition is commercially reasonable.  R.S.O. 1990, c. P.10, s. 63 (2). Secured party’s right to delay disposition of collateral (3) Subject to subsection 65 (1), the secured party may delay disposition of all or part of the collateral for such period of time as is commercially reasonable.  R.S.O. 1990, c. P.10, s. 63 (3). Notice required (4) Subject to subsection (6), the secured party shall give not less than fifteen days notice in writing of the matters described in subsection (5) to, (a)  the debtor who owes payment or performance of the obligation secured; (b)  every person who is known by the secured party, before the date that the notice is served on the debtor, to be an owner of the collateral or an obligor who may owe payment or performance of the obligation secured, including any person who is contingently liable as a guarantor or otherwise of the obligation secured; (c)  every person who has a security interest in the collateral and whose interest, (i)  was perfected by possession, the continuance of which was prevented by the secured party who has taken possession of the collateral, or (ii)  is perfected by registration before the date the notice is served on the debtor; (d)  every person with an interest in the collateral who has delivered a written notice to the secured party of the interest in the collateral before the date that the notice is served on the debtor.  R.S.O. 1990, c. P.10, s. 63 (4); 2000, c. 26, Sched. B, s. 16 (9). Idem (5) The notice mentioned in subsection (4) shall set out, (a)  a brief description of the collateral; (b)  the amount required to satisfy the obligation secured by the security interest; (c)  the amount of the applicable expenses referred to in clause (1) (a) or, in a case where the amount of such expenses has not been determined, a reasonable estimate thereof; (d)  a statement that upon receipt of payment the payor will be credited with any rebates or allowances to which the debtor is entitled by law or under the agreement; (e)  a statement that upon payment of the amounts due under clauses (b) and (c), any person entitled to receive notice may redeem the collateral; (f)  a statement that unless the amounts due are paid the collateral will be disposed of and the debtor may be liable for any deficiency; and (g)  the date, time and place of any public sale or the date after which any private disposition of the collateral is to be made.  R.S.O. 1990, c. P.10, s. 63 (5). Date of giving notice (6) If the notice to the debtor under clause (4) (a) is mailed, sent by courier or by any other transmission provided for in section 68, then the relevant date for the purpose of clause (4) (b), subclause (4) (c) (ii) and clause (4) (d) shall be the date of mailing, the date that the notice was sent by courier or the date of transmission, as the case may be, and not the date of the service.  2000, c. 26, Sched. B, s. 16 (10). Notice not required (7) The notice mentioned in subsection (4) is not required where, (a)  the collateral is perishable; (b)  the secured party believes on reasonable grounds that the collateral will decline speedily in value; (c)  the collateral is of a type customarily sold on a recognized market; (d)  the cost of care and storage of the collateral is disproportionately large relative to its value; (e)  for any reason not otherwise provided for in this subsection, the Superior Court of Justice, on an application made without notice to any other person, is satisfied that a notice is not required; (f)  after default, every person entitled to receive a notice of disposition under subsection (4) consents in writing to the immediate disposition of the collateral; or (g)  a receiver and manager disposes of collateral in the course of the debtor’s business.  R.S.O. 1990, c. P.10, s. 63 (7); 2000, c. 26, Sched. B, s. 16 (1). Secured party’s right to purchase collateral (8) The secured party may buy the collateral or any part thereof only at a public sale unless the Superior Court of Justice, on application, orders otherwise.  R.S.O. 1990, c. P.10, s. 63 (8); 2000, c. 26, Sched. B, s. 16 (1). Effect of disposition of collateral (9) Where collateral is disposed of in accordance with this section, the disposition discharges the security interest of the secured party making the disposition and, if the disposition is made to a buyer who buys in good faith for value, discharges also any subordinate security interest and terminates the debtor’s interest in the collateral.  R.S.O. 1990, c. P.10, s. 63 (9). Idem (10) Where collateral is disposed of by a secured party after default otherwise than in accordance with this section, then, (a)  in the case of a public sale, if the buyer has no knowledge of any defect in the sale and if the buyer does not buy in collusion with the secured party, other bidders or the person conducting the sale; or (b)  in any other case, if the buyer acts in good faith, the disposition discharges the security interest of the secured party making the disposition and, where the disposition is made to a buyer for value, discharges also any subordinate security interest and terminates the debtor’s interest in the collateral.  R.S.O. 1990, c. P.10, s. 63 (10). Certain transfers of collateral (11) A person who is liable to a secured party under a guarantee, endorsement, covenant, repurchase agreement or the like and who receives a transfer of collateral from the secured party or is subrogated to the secured party’s rights has thereafter the rights and duties of the secured party, and such a transfer of collateral is not a disposition of the collateral.  R.S.O. 1990, c. P.10, s. 63 (11). Section Amendments with date in force (d/m/y) 2000, c. 26, Sched. B, s. 16 (1, 9, 10) - 06/12/2000