Obligation to transfer to third party instead
of re-transference to mortgagor.- (1)
Where a mortgagor is entitled to redemption,
then, on the fulfilment of any conditions of
the fulfilment of which he would be entitled
to require a retransfer, he may require the
mortgagee, instead of re-transferring the property,
to assign the mortgage debt and transfer the
mortgaged property to such third person as the
mortgagor may direct; and the mortgagee shall
be bound to assign and transfer accordingly.
(2) The rights conferred by
this section belong to and may be enforced by
the mortgagor or by any encumbrancer notwithstanding
an intermediate encumbrance; but the requisition
of any encumbrance shall prevail over a requisition
of the mortgagor and, as between encumbrancers,
the requisition of a prior encumbrancer shall
prevail over that of a subsequent encumbrancer.
(3) The provisions of this
section do not apply in the case of a mortgagee
who is or has been in possession.