Any money arising from the taking possession, lease, sale, mortgage, or other disposition under this Act by or under the direction of the F3Treasury of any mortgaged property shall be applied first in discharge of all costs, charges, and expenses incurred by or under the direction of F4the Treasury in respect thereof, or otherwise by reason of the default in payment, and secondly in discharge of the whole of the principal of the loan secured by the mortgage and for the time being unpaid (notwithstanding that the same or any instalment thereof may not have become actually due), and in discharge of all interest accrued due on such principal, and of all other sums (if any) due under the mortgage.

The surplus (if any) of such money either shall be paid to the mortgagor or other person or persons entitled thereto, or, if F4the Treasury think fit, shall be paid by the F5Public Works Loans Secretary into F1the Chancery Division of the High Court in England in like manner as if he were a trustee of such money for the persons entitled thereto, and the court may make such orders for the payment and distribution of such money to or among those persons as may from time to time seem to the court just.