65   Effect of acquisition of mortgage interest

(1)  If:

(a)  land is compulsorily acquired under this Act, and

(b)  the land is subject to one or more mortgages,

      then, as a general rule, the compensation to which the owner of the land will be entitled in respect of the acquisition is to be determined as if the land had not been subject to the mortgage.

(2)  However, if compensation is payable under this Part to a mortgagee in respect of a mortgage interest, the compensation payable to the owner of the land acquired is to be reduced by so much of the compensation as is payable to the mortgagee.