46:9-3 - Covenant as to taxes paid - New Jersey Statutes

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