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(1) A payment made in respect of any debt shall, subject to subsection (2) of this section, bind all persons liable in respect thereof.

(2) A payment made in respect of a statute-barred debt shall not bind-

(i) any person other than the person making the payment and his successors, or

(ii) any successor on whom the liability devolves on the determination of a preceding estate or interest in property under a settlement taking effect before the date of payment.

(3) A payment by one of several personal representatives in respect of any claim to the movable estate of a deceased person shall bind the estate of the deceased person.

(4) 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.

(5) Where two or more mortgagees of land are by virtue of the mortgage in possession of the land, and only one of the mortgagees receives any payment in respect of the principal of the mortgage debt or the interest thereon, the payment shall bind only the recipient thereof and his successors.

(6) Where a mortgagee receiving a payment under subsection (5) of this section is entitled to a part of the mortgaged land and not to any ascertained part of the mortgage debt, the mortgagor shall be entitled to redeem that part of the land on payment, with interest, of the part of the mortgage debt which bears the same proportion to the whole of the debt as the value of the part of the land bears to the whole of the mortgaged land.

(7) Where there are two or more mortgagors of land, and the mortgagee, being in possession of the land, is paid any sum in respect of the principal of the mortgage debt or the interest thereon by one of the mortgagors, the payment shall be deemed to have been made by all the mortgagors.