719. Effect of surplus receipts or deficiency in receipts.

If the rents and other receipts from time to time derived from the mortgaged property are more than the interest1, the mortgagee, where the account is taken continuously, does not apply the excess in reduction of principal, and so at the same time reduce the subsequent interest; he keeps it in hand, paying no interest on it, and thereby gains an incidental advantage2. If, on the other hand, the rents and other receipts are less than the interest, the deficiency means an accumulation of interest overdue, and this is a further debt owing by the mortgagor on which he