sec.118Application of proceeds of sale

### sec.118 Application of proceeds of sale This section applies if a mortgagee exercises a power of sale given under an instrument of mortgage, or this Act or another Act, in relation to property. The proceeds of sale must be held by the mortgagee in trust to be applied in payment of the following amounts in the following order— the reasonable expenses incurred in selling the property; the following amounts— if the property has only 1 mortgage—the principal amount, interest and other amounts owing under the mortgage; if the property has more than 1 mortgage—the principal amount, interest and other amounts owing under the mortgages in order of the priority of the amounts; the balance to the owner of the property. However, if the property is disclaimed property mentioned in section 115 , the mortgagee must pay into court the balance mentioned in subsection (2) (c) . A person claiming an amount paid into court under subsection (3) may apply to the court for an order dealing with the amount. (sec.118-ssec.1) This section applies if a mortgagee exercises a power of sale given under an instrument of mortgage, or this Act or another Act, in relation to property. (sec.118-ssec.2) The proceeds of sale must be held by the mortgagee in trust to be applied in payment of the following amounts in the following order— the reasonable expenses incurred in selling the property; the following amounts— if the property has only 1 mortgage—the principal amount, interest and other amounts owing under the mortgage; if the property has more than 1 mortgage—the principal amount, interest and other amounts owing under the mortgages in order of the priority of the amounts; the balance to the owner of the property. (sec.118-ssec.3) However, if the property is disclaimed property mentioned in section 115 , the mortgagee must pay into court the balance mentioned in subsection (2) (c) . (sec.118-ssec.4) A person claiming an amount paid into court under subsection (3) may apply to the court for an order dealing with the amount. - (a) the reasonable expenses incurred in selling the property; - (b) the following amounts— (i) if the property has only 1 mortgage—the principal amount, interest and other amounts owing under the mortgage; (ii) if the property has more than 1 mortgage—the principal amount, interest and other amounts owing under the mortgages in order of the priority of the amounts; - (i) if the property has only 1 mortgage—the principal amount, interest and other amounts owing under the mortgage; - (ii) if the property has more than 1 mortgage—the principal amount, interest and other amounts owing under the mortgages in order of the priority of the amounts; - (c) the balance to the owner of the property. - (i) if the property has only 1 mortgage—the principal amount, interest and other amounts owing under the mortgage; - (ii) if the property has more than 1 mortgage—the principal amount, interest and other amounts owing under the mortgages in order of the priority of the amounts;