(1) If an obligor owes to the same obligee several obligations whose subject is of the same kind, and the tender of performance is insufficient to discharge them all, the person effecting performance may, at the time of performance, designate the obligation to be discharged by appropriating performance for it.
(2) If the person effecting performance makes no such designation as mentioned in the preceding paragraph, the person accepting the performance may at the time of acceptance designate an obligation to be discharged by appropriation of performance; provided, this shall not apply if the person effecting performance immediately objects to such designation and appropriation.
(3) The appropriation of performance mentioned in the preceding two paragraphs shall be effected by a declaration of intention made to the other party.