The proceeds from the sale of a pledge shall be applied, in the order specified, to the following purposes: Payment of the auctioneer's charges if sold at public auction, or commission for selling not to exceed five per cent (5%) if sold at private sale; payment of principal of the loan; payment of the interest on the loan permitted under this act, and payment of the charges on the loan permitted under this act; payment of postage for mailing notice to the pledger of the contemplated sale or notice of the surplus. The surplus, if any, shall be paid to the pledger or such other person who would have been entitled to redeem the pledge had it not been sold.