(1)  If before the day specified in an order under section 146(5) as the day on which possession of the premises to which the order relates is to be given the person having the right to redeem any mortgaged or encumbered land to which the order relates pays to the mortgagee or encumbrancee or, in the case of the mortgagee's or encumbrancee's refusal, tenders in court and pays to the Treasurer all the principal money and interest due on the mortgage or encumbrance and costs, the money so paid to the mortgagee or encumbrancee or to the Treasurer shall be deemed and taken to be in full satisfaction and discharge of the mortgage or encumbrance.

(2)  The Recorder, on the receipt of the Treasurer accompanied by a certificate of the Supreme Court that the money referred to in subsection (1) has been tendered and refused, shall record on the relevant folio of the Register or registered dealing that the mortgage or encumbrance is discharged, and on that recording the mortgaged or encumbered estate or interest shall cease to be charged with any money secured by the mortgage or encumbrance.