35 (1) Subject to subsections (2) and (3) of this section and section 37, a security interest in goods that attached, (a)  before the goods became an accession, has priority as to the accession over the claim of any person in respect of the whole; and (b)  after the goods became an accession, has priority as to the accession over the claim of any person who subsequently acquired an interest in the whole, but not over the claim of any person who had an interest in the whole at the date the security interest attached to the accession and who has not consented in writing to the security interest in the accession or disclaimed an interest in the accession as part of the whole.  R.S.O. 1990, c. P.10, s. 35 (1). Exceptions (2) A security interest referred to in subsection (1), (a)  is subordinate to the interest of, (i)  a subsequent buyer of an interest in the whole, and (ii)  a creditor with a prior perfected security interest in the whole to the extent that the creditor makes subsequent advances, if the subsequent sale or subsequent advance under the prior perfected security interest is made or contracted for before the security interest is perfected; and (b)  is subordinate to the interest of a creditor of the debtor who assumes control of the whole through execution, attachment, garnishment, charging order, equitable execution or other legal process, if control is assumed before the security interest is perfected.  R.S.O. 1990, c. P.10, s. 35 (2). Idem (3) Despite clause (2) (b), a purchase-money security interest in an accession that is perfected before or within 15 days after the debtor obtains possession of the accession has priority over the interest of a creditor referred to in that clause.  R.S.O. 1990, c. P.10, s. 35 (3); 2010, c. 16, Sched. 5, s. 4 (2). Removal of collateral (4) If a secured party has an interest in an accession that has priority over the claim of any person having an interest in the whole, the secured party may, on default and subject to the provisions of this Act respecting default, remove the accession from the whole if, unless otherwise agreed, the secured party reimburses any encumbrancer or owner of the whole who is not the debtor for the cost of repairing any physical injury excluding diminution in value of the whole caused by the absence of the accession or by the necessity for replacement.  R.S.O. 1990, c. P.10, s. 35 (4). Security (5) A person entitled to reimbursement under subsection (4) may refuse permission to remove the accession until the secured party has given adequate security for the reimbursement.  R.S.O. 1990, c. P.10, s. 35 (5). Notice (6) The secured party who has the right to remove an accession from the whole shall serve, on each person known to the secured party as having an interest in the other goods and on any person with a security interest in such other goods perfected by registration against the name of the debtor or against the vehicle identification number of such other goods, if such number is required for registration, a notice in writing of the secured party’s intention to remove the accession containing, (a)  the name and address of the secured party; (b)  a description of the accession to be removed sufficient to enable it to be identified; (c)  the amount required to satisfy the obligations secured by the security interest of the secured party; (d)  a description of the other goods sufficient to enable them to be identified; and (e)  a statement of intention to remove the accession from the whole unless the amount secured is paid on or before a specified day that is not less than ten days after service of the notice.  R.S.O. 1990, c. P.10, s. 35 (6). Idem (7) The notice mentioned in subsection (6) shall be served in accordance with section 68 at least ten days before the accession is removed.  R.S.O. 1990, c. P.10, s. 35 (7). Retention of collateral (8) A person having an interest in the whole that is subordinate to a security interest in the accession may, before the accession has been removed by the secured party in accordance with subsection (3), retain the accession upon payment to the secured party of the amount owing in respect of the security interest having priority over the person’s interest.  R.S.O. 1990, c. P.10, s. 35 (8). Section Amendments with date in force (d/m/y) 2010, c. 16, Sched. 5, s. 4 (2) - 25/10/2010 Real property payments