Site icon The Law Dictionary

BOTTOMRY

In maritime law. A contract in the nature of a mortgage, by which the owner of a ship borrows money for the use, equipment, or repair of the vessel, and for a definite term, and pledges the ship (or the keel or bottom of the ship, pars pro tQto) as a security for its repajment, with maritime or extraordinary interest on account of the marine risks to be borne by the lender; it being stipulated that if the ship be lost In the course of the specified voyage, or during the limited time, by any of the perils enumerated in the contract, the lender shall also lose his money. The Draco, 2 Sumn. 157, Fed. Cas. No. 4,057; White v. Cole, 24 Wend. (N. Y.) 126; Carrington v. The Pratt, 18 How. 63, 15 L. Ed. 267; The Dora (D. C.) 34 Fed. 343; Jennings v. Insurance Co., 4 Bin. (Pa.) 244, 5 Am. Dec. 404; Braynard r. Hoppock, 7 Bosw. (N. Y.) 157. Bottomry is a contract by which a ship or its freightage is hypothecated as security for a loan, which is to be repaid only in case the ship survives a particular risk, voyage, or period. Oiv. Code Cal.

Exit mobile version