Bottomry

maritime law, isa contract in nature of a mortgage of a ship, on which the owner borrows money to enable him to fit out the ship, or to purchase a cargo for a voyage proposed; and he pledges the keel or bottom of the ship, pars pro toto, as a security for the repayment: and it is stipulated that if the ship should be lost in the course of the voyage, by any of the perils enumerated in the contract, the lender also shall lose his money; but if the ship should arrive in safety, then he shall receive back his principal, and also the interest agreed upon, which is_ generally called marine interest, however this may excced the legal rate of interest. Not only the ship and tackle if they arrive safe, but also the person the borrower is liable for the money lent and the marine interest.

See 2 Bl. Com. 458; Marsh. Ins. B. 2, c. 1; Ord. Louis XIV. B. 3, tit. 5; Laws of Wisbuy, art. 45; Code de Com. B. 2, tit. 9..

The contract of bottomry should specify the principal lent, and the rate of maritime interest agreed upon; the master; those of the Iender and borrower; whether the loan be for an cntire voyage; for what voyage; and for what space of time; and the period of repayment. Code de Com. art.

311; Marsh. Ins. B. 2.

Bottomry differs materially from a simple loan. In aloan, the money is at the risk of the borrower, and must be paid at all events. But in bottomry, the money is at the risk of the lender during the voyage. Upon a loan only legal interest can be received; but upon bottomry, any interest may be legally reserved which the parties agree upon. __.

See generally, Marsh. Ins. B. 2; Bac. Abr. Merchant, K; Com. Dig. E 4; 3.Mass. 443; 8 Mass. 340; 4 Binn. 244; 4 Cranch, 328; 3 Johns. R. 352; 2 Johns. Cas. 250; 1 Binn. 405; 8 Cranch, 418; 1 Wheat. 96; 2 Dall. 194.

See also this Dict. tit. Respondentia; Vin. Abr. Bottomry Bonds.