93Application of proceeds of sale

93 Application of proceeds of sale (1) The proceeds from the sale of land by a mortgagee entitled to the benefit of an overriding statutory charge are to be: (a) first – applied in payment of the costs, charges and expenses properly incurred by the mortgagee as incident to the sale; (b) secondly – applied in payment of any money owing to a person entitled under a law of the Commonwealth to priority over an overriding statutory charge; (c) thirdly – applied in payment of any money owing to a mortgagee entitled to the benefit of a prior overriding statutory charge having priority; (d) fourthly – applied in payment of the money owing to the mortgagee entitled to the benefit of the overriding statutory charge; and (e) further – in accordance with subsection (2)(b), (c), (d), (f) and (g) (in that sequence). (2) The proceeds from the sale of land by the mortgagee in any other case are to be: (a) first – applied in payment of the costs, charges and expenses properly incurred by the mortgagee as incident to the sale; (b) secondly – applied in payment of money owing to a person entitled under a law of the Commonwealth to priority over a statutory charge; (c) thirdly – applied in payment of money owing to a mortgagee entitled to the benefit of a registered overriding statutory charge; (d) fourthly – applied in payment of a prior registered mortgage, if any, if the mortgagee entitled to the benefit of the mortgage has concurred in the sale and has executed a discharge of the mortgage; (e) fifthly – applied in payment of the money owing to the mortgagee; (f) sixthly – applied in payment of any subsequent mortgages in order of their priority; and

Law of Property Act 2000 61 (g) seventhly – in the case of any residue of the proceeds, paid to the person entitled to receive or give receipts for the proceeds of sale of the land. (3) Despite this section, if the money arises from the sale of mortgaged freehold property that has been disclaimed under section 133(1) of the Bankruptcy Act 1966 (Cth) or section 568(1) of the Corporations Act 2001 (Cth), the residue of the money mentioned in subsection (2)(g) must be paid into the court.