740. Overpayments and underpayments of mortgage interest.

740.     Overpayments and underpayments of mortgage interest.

Where interest has been paid on a sum greater than that ultimately held to be charged on the property, the overpayment is not treated as paid in reduction of principal mortgage debt1. In appropriate circumstances an overpayment of interest may be refunded to the mortgagor2, or an underpayment made good to the mortgagee3.