724. Application of proceeds of sale of part of mortgaged property.

724.     Application of proceeds of sale of part of mortgaged property.

Where a sale of part of the mortgaged property is effected, the net proceeds are applied first in payment of interest then due, and the surplus is carried to the credit of principal as at the date of receipt, so as to reduce the amount on which interest runs from then; but no rest1 is made at the same time in the account of rents and profits. If the account is being taken without rests2, the account of rents and profits will go on continuously