Real Property Act 1886

All moneys which by reason of any sale by an encumbrancee or otherwise shall become applicable to the payment of an encumbrance shall be applied firstly in payment of the moneys then actually due to the encumbrancee, and if the encumbrance shall not then be satisfied the surplus shall be paid to the Public Trustee who shall invest the same upon Government securities or upon loan to the Treasurer and shall hold such surplus and the investments and income thereof upon trust to satisfy the accruing payments of the annuity, rent-charge, or other sum of money secured by the encumbrance and subject thereto for the person entitled to such moneys after payment of the encumbrance.

This section shall take effect as though inserted in this Act on the passing thereof.