Section 68

The money received by a mortgagee who has exercised his 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 [Cap. 61] of a sum to meet any prior encumbrances, shall be held by him in trust to be applied, firstly in payment of all costs and expenses properly incurred as incident to the sale or any attempted sale, or otherwise; secondly in discharge of the mortgage money, interest and costs, and other money (if any) due under the mortgage; thirdly in payment of subsequent mortgages and charges (if any) in the order of their priority; and the residue of the money so received shall 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.

The money received by a chargee who has exercised his power of sale, after discharge of prior encumbrances to which the sale is not made subject (if any), shall be held by him in trust to be applied, firstly in payment of all costs and expenses properly incurred by him as incident to the sale or any attempted sale, or otherwise; secondly in accordance with any express provision in the instrument of charge (as authorised by section 63(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; thirdly in payment of subsequent mortgages and charges (if any) in the order of their priority; and the residue of the money so received shall 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.

Where by this section a mortgagee or chargee is required to account to a subsequent chargee for money arising on a sale, such money shall 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.[64