Section 318: Appropriation of payment by debtor to charge holder

318. Appropriation of payment by debtor to charge holder (1) Where a debtor has made a payment to a charge holder after the debtor has given a charge to which section 314 or 316 applies, the debtor’s payment shall be credited as far as is necessary towards— (a) repayment of the money actually advanced or paid by the charge holder to the debtor when or after the debtor gave the charge; (b) payment of the actual price or value of property sold by the charge holder to the debtor when or after the debtor gave the charge; or (c) payment of any other liability of the debtor to the charge holder, including in respect of any other valuable consideration given in good faith when or after the debtor gave the security. (2) Nothing in this section applies to any payment received by a bank in good faith in the ordinary course of business and without negligence.