46:9-3 - Covenant as to taxes paid
46:9-3.Ā Covenant as to taxes paid
A covenant by the mortgagor in a mortgage,Ā "That no owner of the mortgagedĀ property shall be entitled to any credit by reason of the payment of any taxĀ thereon"Ā shall be construed to mean that the mortgagor, for himself, hisĀ heirs, executors, administrators, successors and assigns, covenants with theĀ holder of the mortgage that he and they will not, by reason of the payment ofĀ any tax, assessment or other municipal charge or imposition, claim any creditĀ on account of the principal or interest due or to grow due on said mortgage orĀ the bond or obligation intended to be secured thereby, and that should saidĀ mortgagor, his heirs, executors, administrators, successors or assigns, fail toĀ pay any tax, assessment or other governmental charge, then and in that eventĀ the holder of the mortgage may at his option pay such tax, assessment or otherĀ governmental charge and the amount when so paid shall be added to and becomeĀ part of the principal sum then due upon the bond or obligation referred to inĀ said mortgage, and be secured by said mortgage and shall be payable on demand with legal interest.
A covenant by the mortgagor in a mortgage,Ā "That no owner of the mortgagedĀ property shall be entitled to any credit by reason of the payment of any taxĀ thereon"Ā shall be construed to mean that the mortgagor, for himself, hisĀ heirs, executors, administrators, successors and assigns, covenants with theĀ holder of the mortgage that he and they will not, by reason of the payment ofĀ any tax, assessment or other municipal charge or imposition, claim any creditĀ on account of the principal or interest due or to grow due on said mortgage orĀ the bond or obligation intended to be secured thereby, and that should saidĀ mortgagor, his heirs, executors, administrators, successors or assigns, fail toĀ pay any tax, assessment or other governmental charge, then and in that eventĀ the holder of the mortgage may at his option pay such tax, assessment or otherĀ governmental charge and the amount when so paid shall be added to and becomeĀ part of the principal sum then due upon the bond or obligation referred to inĀ said mortgage, and be secured by said mortgage and shall be payable on demand with legal interest.