New Jersey § 46:9-5

§ 46:9-5.

A covenant in any mortgage in the words, “That the buildings on the premises shall

be kept insured against loss by fire for the benefit of the holder hereof” shall be

construed to have the same force and effect as the following words: “And it is agreed by and between the parties to these presents that the said mortgagor

for himself, his heirs, executors, administrators, successors and assigns, shall and

will keep the buildings erected and to be erected upon the lands described in said

mortgage insured against loss or damage by fire by insurers and in an amount both

approved by the mortgagee, his executors, administrators, successors or assigns, and

assign and deliver the policy or policies and the certificates thereof to the said

mortgagee, his executors, administrators, successors or assigns, and in default thereof

it shall be lawful for the said mortgagee, his executors, administrators, successors

or assigns, to effect such insurance, and the premium and premiums paid for effecting

the same shall be a lien on said mortgaged premises added to the amount of the said

bond or obligation and secured by these presents, payable on demand with legal interest

thereon from the time of the payment of such premium or premiums.”