(1)Where there appear to be grounds for a claim under section 10 above in respect of an interest that is subject to a mortgage—
(a)the claim may be made by any mortgagee of the interest as if he were the person entitled to that interest but without prejudice to the making of a claim by that person;
(b)no compensation shall be payable under that section in respect of the interest of the mortgagee (as distinct from the interest which is subject to the mortgage);
(c)any compensation payable under that section in respect of the interest that is subject to the mortgage shall be paid to the mortgagee or, if there is more than one mortgagee, to the first mortgagee and shall in either case be applied by him as if it were proceeds of sale.
(2)Where an interest is held on trust for sale any compensation payable in respect of it under section 10 above shall be dealt with as if it were proceeds of sale arising under the trust.
(3)Where an interest is settled land for the purposes of the [1925 c. 18.] Settled Land Act 1925 any compensation payable in respect of it under section 10 above shall be treated as capital money arising under that Act.