(1) Subject to the terms of any order under section 97 or section 98, a mortgagee in possession (or after the mortgagee has appointed a receiver and so long as the receiver acts, the receiver)  shall take steps within a reasonable time to exercise the power to -

(a) sell the mortgaged property under section 100, or

(b) if it is not appropriate to sell, lease the property under section 112 and use the rent and any other income received from the lessee to reduce the mortgage debt, including interest accrued or accruing.

(2) Section 34 of the Act of 1957 does not apply to a mortgagee who takes possession of land under a court order under section 97 or section 98.