305Application of purchase money by mortgagee

305 Application of purchase money by mortgagee (1) The amount received from a sale under this part must be applied by the mortgagee as follows: (a) first, in payment of the expenses incidental to the sale or incurred in any attempted sale; (b) second, in discharge of the interest and costs then owing in relation to the mortgage because of which the sale was made; (c) third, in discharge of the principal then owing under the mortgage; (d) finally, in payment of the balance to or on behalf of the person entitled to the property mortgaged. (2) To remove any doubt, this section is subject to the Taxation Administration Act 1999, section 56H (Tax payable is charge on land).