2A:50-40 - Foreclosure for unpaid interest authorized - New Jersey Statutes

2A:50-40.  Foreclosure for unpaid interest authorized
    The holder of a mortgage, under the terms of which the mortgagor has agreed  to pay the mortgagee a certain specified sum or sums of money at certain future  time or times as therein specified, or as specified in the evidence of debt to  secure which the mortgage was given, and also interest on the principal thereof  during the term of the mortgage, at certain specified times at a rate not in  excess of the legal annual rate, may, whenever the owner of the mortgaged  premises defaults in making any such interest payment at the time when it has  become due, or within such period of grace as is designated in the mortgage or  the evidence of debt secured thereby, elect to foreclose the mortgage only to  the extent that there is due and unpaid thereunder, upon the evidence of debt  secured thereby, any interest upon the principal sum secured thereby.
 
L.1951 (1st SS), c.344.