(1) No action shall be brought to recover arrears of interest payable in respect of any principal sum of money secured by a mortgage or charge on land or personal property (other than a ship) or to recover damages in respect of such arrears after the expiration of six years from the date on which the interest became due.

(2) Where -

(a) a prior mortgagee or other incumbrancer has been in possession of the property charged, and

(b) an action is brought within one year of the discontinuance of such possession by a subsequent incumbrancer,

he may recover by that action all the arrears of interest which fell due during the period of possession by the prior incumbrancer or damages in respect thereof, notwithstanding that the period exceeded six years.

(3) Where -

(a) the property subject to a mortgage or charge comprises any future interest or life insurance policy, and

(b) it is a term of the mortgage or charge that arrears of interest shall be treated as part of the principal sum secured by the mortgage or charge,

interest shall not be deemed to become due before the right to receive the principal sum of money has accrued or is deemed to have accrued.