65 (1) Where a security agreement secures an indebtedness and the collateral is consumer goods and the debtor has paid at least 60 per cent of the indebtedness secured and has not signed, after default, a statement renouncing or modifying the debtor’s rights under this subsection, the secured party who has taken possession of the collateral shall, within ninety days after taking possession, dispose of or contract to dispose of the collateral under section 63, and, if the secured party fails to do so, the debtor may proceed under section 67 or in an action for damages or loss sustained.  R.S.O. 1990, c. P.10, s. 65 (1); 2000, c. 26, Sched. B, s. 16 (11). Acceptance of collateral (2) In any case other than that mentioned in subsection (1), a secured party may, after default, propose to accept the collateral in satisfaction of the obligation secured and shall serve a notice of the proposal on the persons mentioned in clauses 63 (4) (a) to (d).  R.S.O. 1990, c. P.10, s. 65 (2). Objection (3) If any person entitled to notification under subsection (2), whose interest in the collateral would be adversely affected by the secured party’s proposal, delivers to the secured party a written objection within 15 days after service of the notice, the secured party shall dispose of the collateral in accordance with section 63.  R.S.O. 1990, c. P.10, s. 65 (3); 2006, c. 34, Sched. E, s. 21 (1). Extension of time (3.1) Upon application by any person entitled to notification under subsection (2), the Superior Court of Justice may make an order extending the 15-day period mentioned in subsection (3).  2006, c. 34, Sched. E, s. 21 (2). Proof of interest (4) The secured party may require any person who has made an objection to the proposal to furnish proof of that person’s interest in the collateral and, unless the person furnishes the proof within ten days after demand by the secured party, the secured party may proceed as if no objection had been made.  R.S.O. 1990, c. P.10, s. 65 (4). Application to judge (5) Upon application to the Superior Court of Justice by the secured party, and after notice to every person who has made an objection to the proposal, the court may order that an objection to the proposal of the secured party is ineffective because, (a)  the person made the objection for a purpose other than the protection of the person’s interest in the collateral or in the proceeds of a disposition of the collateral; or (b)  the fair market value of the collateral is less than the total amount owing to the secured party and the estimated expenses recoverable under clause 63 (1) (a).  R.S.O. 1990, c. P.10, s. 65 (5); 2000, c. 26, Sched. B, s. 16 (1). Foreclosure (6) If no effective objection is made, the secured party shall be deemed to have irrevocably elected to accept the collateral in full satisfaction of the obligation secured at the earlier of, (a)  the expiration of the 15-day period mentioned in subsection (3) or, if the period was extended under subsection (3.1), the expiration of the extended period; and (b)  the time when the secured party received from each person entitled to notification under subsection (2) written consent to having the secured party retain the collateral in satisfaction of the obligation.  2000, c. 26, Sched. B, s. 16 (12); 2006, c. 34, Sched. E, s. 21 (3). Effect of foreclosure (6.1) After the deemed election under subsection (6), the secured party is entitled to the collateral free from all rights and interests in it of any person entitled to notification under subsection (2) whose interest is subordinate to that of the secured party and who was served with the notice.  2000, c. 26, Sched. B, s. 16 (12). Effect of disposition (7) When a secured party disposes of the collateral after expiration of the period mentioned in subsection (6) to a buyer who buys in good faith for value and who takes possession of it or, in the case of an intangible, receives an assignment of it, the buyer acquires the collateral free from any interest of the secured party and the debtor and free from every interest subordinate to that of the secured party, whether or not the requirements of this section have been complied with by the secured party.  R.S.O. 1990, c. P.10, s. 65 (7). Section Amendments with date in force (d/m/y) 2000, c. 26, Sched. B, s. 16 (1, 11, 12) - 06/12/2000 2006, c. 34, Sched. E, s. 21 (1-3) - 01/08/2007