134. Where a debt is transferred for the purpose of securing an existing or future debt, the debt so transferred, if received by the transferor or recovered by the transferee, is applicable, first, in payment of the costs of such recovery: secondly, in or towards satisfaction of the amount for the time being secured by the transfer; and the residue, if any, belongs to the transferor or other person entitled to receive the same.
Transfer of Property Act, 1882
Section 134: Mortgaged debt
Chapter VIII — Of Transfers of Actionable Claims
Source: official text of the Transfer of Property Act, 1882.