Valid from 01/05/1995
12(1)Where amount C exceeds amount P—
(a)find the amount by which amount C exceeds amount P (amount X);
(b)take all the payments and parts of payments which discharge any liability to pay overdue interest;
(c)treat those payments and parts of payments as cancelling out amount X before any other part of amount C.
(2)A payment of interest represents excess overdue interest to the extent that, in accordance with sub-paragraph (1) above, it is treated as cancelling out amount X.