s 74 Application of proceeds of sale
74.—(1) The money received by a mortgagee who has exercised the mortgagee’s power of sale, after discharge of prior encumbrances to which the sale is not made subject (if any), or after payment into court under the Conveyancing and Law of Property Act 1886 of a sum to meet any prior encumbrances, must be held by the mortgagee on trust to be applied —(a) firstly, in payment of all costs and expenses properly incurred as incidental to the sale or any attempted sale, or otherwise; (b) secondly, in discharge of the mortgage money, interest and costs, other money and liability (if any) secured by the mortgage; and (c) thirdly, in payment of subsequent mortgages and charges (if any) in the order of their priority, and the residue of the money so received must be paid to the person who appears from the land‑register to be entitled to the mortgaged property or to be authorised to give receipts for the proceeds of the sale thereof. (2) The money received by a chargee who has exercised the chargee’s power of sale, after discharge of prior encumbrances to which the sale is not made subject (if any), must be held by the chargee on trust to be applied —(a) firstly, in payment of all costs and expenses properly incurred by the chargee as incident to the sale or any attempted sale, or otherwise; (b) secondly, in accordance with any express provision in the instrument of charge (as authorised by section 68(4)) for disposing of such money and, in the absence of any express provision, in discharge of the money due to the chargee at the date of the sale; and (c) thirdly, in payment of subsequent mortgages and charges (if any) in the order of their priority, and the residue of the money so received must be paid to the person who appears from the land‑register to be entitled to the charged property or to be authorised to give receipts for the proceeds of the sale thereof. (3) Where by this section a mortgagee or chargee is required to account to a subsequent chargee for money arising on a sale, such money must be paid or applied in accordance with the express provision (if any) in the instrument of charge for disposing of such money, and, in the absence of express provision, in discharge of the money due to the chargee at the date of the sale. —(1) The money received by a mortgagee who has exercised the mortgagee’s power of sale, after discharge of prior encumbrances to which the sale is not made subject (if any), or after payment into court under the Conveyancing and Law of Property Act 1886 of a sum to meet any prior encumbrances, must be held by the mortgagee on trust to be applied —(a) firstly, in payment of all costs and expenses properly incurred as incidental to the sale or any attempted sale, or otherwise; (b) secondly, in discharge of the mortgage money, interest and costs, other money and liability (if any) secured by the mortgage; and (c) thirdly, in payment of subsequent mortgages and charges (if any) in the order of their priority, and the residue of the money so received must be paid to the person who appears from the land‑register to be entitled to the mortgaged property or to be authorised to give receipts for the proceeds of the sale thereof. (2) The money received by a chargee who has exercised the chargee’s power of sale, after discharge of prior encumbrances to which the sale is not made subject (if any), must be held by the chargee on trust to be applied —(a) firstly, in payment of all costs and expenses properly incurred by the chargee as incident to the sale or any attempted sale, or otherwise; (b) secondly, in accordance with any express provision in the instrument of charge (as authorised by section 68(4)) for disposing of such money and, in the absence of any express provision, in discharge of the money due to the chargee at the date of the sale; and (c) thirdly, in payment of subsequent mortgages and charges (if any) in the order of their priority, and the residue of the money so received must be paid to the person who appears from the land‑register to be entitled to the charged property or to be authorised to give receipts for the proceeds of the sale thereof. (3) Where by this section a mortgagee or chargee is required to account to a subsequent chargee for money arising on a sale, such money must be paid or applied in accordance with the express provision (if any) in the instrument of charge for disposing of such money, and, in the absence of express provision, in discharge of the money due to the chargee at the date of the sale.