Acts and Regulations

P-7.1 - Personal Property Security Act

Section 58
Disposition versions

Full text
Right to take possession of collateral and enforce security interest
58(1)In this section
“dependant” means a person living with the debtor who is wholly or substantially dependent on the debtor for financial support;(personne à charge)
“secured party” includes a receiver.(partie garantie)
58(2)Subject to subsections (3) to (7), sections 36, 37 and 38, the Bankruptcy and Insolvency Act (Canada) and any other Act or rule of law requiring a secured party to give prior notice of the intention to enforce a security interest, if the debtor is in default under a security agreement,
(a) the secured party has, unless otherwise agreed, the right to take possession of the collateral or otherwise enforce the security interest by any method permitted by law,
(b) if the collateral is goods of a kind that cannot be readily moved from the debtor’s premises or of a kind for which adequate storage facilities are not readily available, the secured party may seize or repossess the collateral without removing it from the debtor’s premises in any manner by which a sheriff acting under an order for seizure and sale may seize without removal, if the secured party’s interest is perfected by registration under section 25,
(c) if paragraph (b) applies, the secured party may dispose of the collateral on the debtor’s premises but shall not cause the person in possession of the premises any greater inconvenience and cost than is necessarily incidental to the disposal, and
(d) if the collateral is a document of title, the secured party may proceed either as to the document of title or as to the goods covered by it, and any method of enforcement that is available with respect to the document of title is also available, with the necessary modifications, with respect to the goods covered by it.
58(3)Subject to subsection (7), a debtor may claim the following items of collateral to be exempt from seizure by a secured party:
(a) furniture, household furnishings and appliances used by the debtor or a dependent to a realizable value of five thousand dollars or to any greater amount that may be prescribed;
(b) one motor vehicle having a realizable value of not more than six thousand five hundred dollars at the time the claim for exemption is made, or not more than any greater amount that may be prescribed, if the motor vehicle is required by the debtor in the course of or to retain employment or in the course of and necessary to the debtor’s trade, profession or occupation or for transportation to a place of employment where public transportation facilities are not reasonably available;
(c) medical or health aids necessary to enable the debtor or a dependent to work or to sustain health; and
(d) consumer goods in the possession and use of the debtor or a dependent if, on application, the Court determines that
(i) the loss of the consumer goods would cause serious hardship to the debtor or dependent, or
(ii) the costs of seizing and selling the goods would be disproportionate to the value that would be realized.
58(4)A dependent may claim an item of collateral within paragraph (3)(a), (c) or (d) to be exempt from seizure but a claim may not be made by both a debtor and a dependent with respect to an item of the same kind.
58(5)If a claim for exemption is made under paragraph (3)(a) or (b) and the realizable value of the collateral for which the claim is made exceeds the maximum amount of the exemption specified in those paragraphs, the secured party may seize the collateral.
58(6)A secured party who seizes collateral in the circumstances referred to in subsection (5) shall dispose of it in accordance with section 59 and shall pay to the debtor an amount equivalent to the maximum amount of the exemption, whether or not the proceeds of the disposition exceed that maximum amount.
58(7)Paragraphs (3)(a) to (c) and subsections (4), (5) and (6) do not apply in relation to goods that are subject to a purchase money security interest held by the secured party against whom the claim to exemption is made.
Right to take possession of collateral and enforce security interest
58(1)In this section
“dependant” means a person living with the debtor who is wholly or substantially dependent on the debtor for financial support;
“secured party” includes a receiver.
58(2)Subject to subsections (3) to (7), sections 36, 37 and 38, the Bankruptcy and Insolvency Act (Canada) and any other Act or rule of law requiring a secured party to give prior notice of the intention to enforce a security interest, if the debtor is in default under a security agreement,
(a) the secured party has, unless otherwise agreed, the right to take possession of the collateral or otherwise enforce the security interest by any method permitted by law,
(b) if the collateral is goods of a kind that cannot be readily moved from the debtor’s premises or of a kind for which adequate storage facilities are not readily available, the secured party may seize or repossess the collateral without removing it from the debtor’s premises in any manner by which a sheriff acting under an order for seizure and sale may seize without removal, if the secured party’s interest is perfected by registration under section 25,
(c) if paragraph (b) applies, the secured party may dispose of the collateral on the debtor’s premises but shall not cause the person in possession of the premises any greater inconvenience and cost than is necessarily incidental to the disposal, and
(d) if the collateral is a document of title, the secured party may proceed either as to the document of title or as to the goods covered by it, and any method of enforcement that is available with respect to the document of title is also available, with the necessary modifications, with respect to the goods covered by it.
58(3)Subject to subsection (7), a debtor may claim the following items of collateral to be exempt from seizure by a secured party:
(a) furniture, household furnishings and appliances used by the debtor or a dependent to a realizable value of five thousand dollars or to any greater amount that may be prescribed;
(b) one motor vehicle having a realizable value of not more than six thousand five hundred dollars at the time the claim for exemption is made, or not more than any greater amount that may be prescribed, if the motor vehicle is required by the debtor in the course of or to retain employment or in the course of and necessary to the debtor’s trade, profession or occupation or for transportation to a place of employment where public transportation facilities are not reasonably available;
(c) medical or health aids necessary to enable the debtor or a dependent to work or to sustain health; and
(d) consumer goods in the possession and use of the debtor or a dependent if, on application, the Court determines that
(i) the loss of the consumer goods would cause serious hardship to the debtor or dependent, or
(ii) the costs of seizing and selling the goods would be disproportionate to the value that would be realized.
58(4)A dependent may claim an item of collateral within paragraph (3)(a), (c) or (d) to be exempt from seizure but a claim may not be made by both a debtor and a dependent with respect to an item of the same kind.
58(5)If a claim for exemption is made under paragraph (3)(a) or (b) and the realizable value of the collateral for which the claim is made exceeds the maximum amount of the exemption specified in those paragraphs, the secured party may seize the collateral.
58(6)A secured party who seizes collateral in the circumstances referred to in subsection (5) shall dispose of it in accordance with section 59 and shall pay to the debtor an amount equivalent to the maximum amount of the exemption, whether or not the proceeds of the disposition exceed that maximum amount.
58(7)Paragraphs (3)(a) to (c) and subsections (4), (5) and (6) do not apply in relation to goods that are subject to a purchase money security interest held by the secured party against whom the claim to exemption is made.