(1) A payment in respect of a mortgage debt by the mortgagor or any person in possession of the mortgaged property shall, so far as any right of the mortgagee to recover the property is concerned, bind all persons in possession of the mortgaged property during the ensuing period of limitation.

(2) Where -

(a) two or more mortgagees of land are by virtue of the mortgage in possession of the land, and

(b) one only of the mortgagees (in this subsection referred to as the recipient) receives any payment in respect of the principal or interest of the mortgage debt,

the following provisions shall have effect: -

(i) the payment shall bind only the recipient and his successors and shall not bind any other mortgagee or his successors;