(1) All monthly payments to be made by the mortgagor to the mortgagee under an approved mortgage shall be added together and the aggregate amount thereof paid, on a date to be fixed in the mortgage in a single payment (in this regulation referred to as the “aggregate monthly payment”).
(2) The mortgagee shall apply the aggregate monthly payment towards the discharge of the mortgagor's obligations under the mortgage in the following order—
(a) the amount, if any, payable under the mortgage under regulation 13(6)(a);
(b) the amount payable under the mortgage under regulation 13(5)(c);
(c) the service charge, if any;
(d) interest due under the mortgage;
(e) the amortization of the principal sum secured under the mortgage.
(3) For the purpose of section 10 of the Act, borrower charges are such expenses as are incurred by an approved mortgagee in accordance with the terms of the mortgage to safeguard the interest of the mortgagee and the Authority for—
(a) insurance premiums for fire and other perils insured against;
(b) taxes and other rates and charges levied against the property which have priority over the mortgage;
(c) any premiums in respect of life insurance required to be effected under the mortgage;
(d) any emergency expense; and
(e) such other purposes and in such amounts as may be approved by the Authority in writing.