164 HIGH COURT OF CHANCERY.

The rule that payments made generally, will be applied in a
way most beneficial to the debtor, is further illustrated by the
cases in which such payments have been applied in extinguish-
ment of debts, bearing interest, where there were others due
the same creditor not carrying interest. Hayward vs. Lomax,
1 Fern., 24.

In this case, it is true, that it is not very important to the
debtor, whether the payments are applied to the debts secured
by the mortgage, or to those which are not so secured, as the
surplus in either case will be insufficient to pay the other
claims against him.

It is, however, of some importance to the other creditors, as
the surplus applicable to the payment of their claims, will be
diminished or enlarged, as the one, or other rule is adopted.
The rule, as laid down in some of the cases is, that if a party
is indebted on several accounts, and makes a payment, he may
apply it to either, if he does not, the creditor may do so; and
if neither does, the law will appropriate it according to the jus-
tice of the case. United States vs. Kirkpatrick, 9 Wheat.,
720; Cremer vs. Higinson, 1 Mason, 323. And it seems to
the Chancellor, that the justice of the case, in view of the in-
terests of third persons, as well as a proper regard to the
rights of the debtor, requires that the payments should be ap-
plied to the satisfaction of the mortgage debt, and an order will
be passed for that parpose.

The case is not now in a condition to enable the court to
make a final disposition of the surplus among the various con-
tending creditors. It would seem that the surplus should be
assigned to those creditors according to the date of their re-
spective liens, but the difficulty arises from the fact, that the
different deeds and mortgages are for parcels of the premises
mortgaged to Carroll of Carrollton, and the whole being sold in
a lump, it is not easy to say how much of the purchase money
should be awarded to the several parties. The case will, how-
ever, be sent to the Auditor, with directions, as far as practica-
ble, to appropriate the surplus, after paying the mortgage debt
of the complainant, to the satisfaction of the claims of the oth-