44Adjustment of interest

#### 44 Adjustment of interest 44 Adjustment of interest > > (1) In an action for redemption or otherwise in respect of a mortgage of property including an action in respect of the proceeds of sale or other realization of property subject to a mortgage— > > > > > (a) a mortgagor is not, as against a mortgagee, to be required to pay or bear interest which could not, by reason of a period of limitation fixed by or under this Act, be recovered in an action by that mortgagee against that mortgagor brought on the date on which the firstmentioned action is brought, and > > > > > (b) in adjusting the rights of a mortgagor and a mortgagee the mortgagee is not to be entitled to the interest mentioned in paragraph (a). > > > (2) Where— > > > > > (a) interest becomes due under a mortgage, and > > > > > (b) a mortgagee— > > > > > > > (i) holds money on the date on which the interest becomes due, or > > > > > > > (ii) after that date but before the expiration of the limitation period fixed by or under this Act for an action on a cause of action to recover that interest by that mortgagee against a mortgagor, receives money, and > > > > > (c) before or after the bringing of an action to which subsection (1) applies, that mortgagee or a person claiming through the mortgagee properly applies that money in or towards satisfaction of that interest, > > > > subsection (1) does not, as against the person so applying that money or a person claiming through the person, apply to that interest to the extent to which it is so satisfied.