Sec.32-13-6. Application of payments

(a) The mortgage shall provide that all periodic payments to be made by the mortgagor to the mortgagee shall be added together and the aggregate amount thereof shall be paid by the mortgagor upon each periodic payment date in a single payment. The mortgagee shall apply the same to the following items in the order set forth: (1) Premium charges under the contract of insurance; (2) ground rents, taxes, special assessments and fire and other hazard insurance premiums; (3) interest on the mortgage; (4) any advances made by the mortgagee permitted by section 32-17a(a) of the 1969 supplement to the general statutes; (5) amortization of the principal of the mortgage.

(b) Any deficiency in the amount of any such aggregate periodic payment shall constitute an event of default. The mortgage shall further provide for a grace period within which time the default shall be made good.

(Effective November 26, 1968)