In re Mortgage Corp.

The issue is the proper construction and interpretation of that part of section 1077-c of the Civil Practice Act which permits the court to make an order directing payment of the “ surplus or such part thereof as the court may determine to the mortgagee to apply toward the reduction of any past due principal.” It is now said that means the court must direct payment to the mortgagee of all surplus in any application unless part is necessary for prospective expenses, taxes, interest or carrying charges, or for the maintenance and preservation of the mortgaged property. The statute itself…