26.—(1) Compensation in respect of an interest which is subject to a mortgage must be paid—
(a)to the mortgagee; or
(b)if there is more than one mortgagee, to the first mortgagee,
and must, in either case, be applied by him as if it were proceeds of sale.
(2) Amounts of compensation determined under this Part are payable—
(a)where the operator and the grantor or mortgagee agree that a single payment is to be made on a specified date, on that date;
(b)where the operator and the grantor or mortgagee agree that payment is to be made in instalments at different dates, on the date agreed as regards each instalment;
(c)in any other case, subject to any direction of the Lands Tribunal or the court, as soon as reasonably practicable after the amount of the compensation has been finally determined.
(3) Any question of the application of paragraph 25(3) or dispute as to the amount of compensation must be referred to and determined by the Lands Tribunal.
(4) In relation to the determination of such a question, sections 2 and 4 of the Land Compensation Act 1961(1) apply as if—
(a)the reference in section 2(1) of that Act to section 1 of that Act were a reference to sub-paragraph (3) of this paragraph; and
(b)references in section 4 of that Act to the acquiring authority were references to the operator.
Section 2 was amended by the Local Government, Planning and Land Act 1980 (c. 65), section 193 and Schedule 33.