an agreement within the nature of a mortgage in which who owns a ship or the master as their broker hypothecates and binds the ship and quite often the accruing freight as protection for the repayment of money advanced level or lent the utilization of the ship if she terminates her voyage successfully If the ship is lost by perils for the water the lender loses the money if the ship shows up safe he is to receive the amount of money lent utilizing the interest or premium stipulated although it may and in most cases does meet or exceed the legal interest rate See Hypothecation
- A contract in the nature of home financing, wherein the owner of a ship, and/or master as his representative, hypothecates and binds the ship (and quite often the accruing freight) as security for payment of cash higher level or lent the use of the ship, if she terminates the woman voyage effectively. If the ship is lost by perils regarding the ocean, the lender manages to lose the funds; however ship arrives safe, he's to get the money lent, with all the interest or premium stipulated, though it may, and often does, go beyond the legal interest. See Hypothecation.
n. home financing agreement for which a ship and/or its freight is pledged as safety for a loan for gear, repair, or utilization of a vessel. The contract is normally known as a "bottomry bond." If loan is not reimbursed, the financial institution can offer the ship and/or its freight.
In maritime legislation. A contract when you look at the nature of home financing, in which who owns a ship borrows cash for usage, equipment or repair of vessel, and an absolute term, and pledges the ship (or the keel or base of the ship, pars professional toto) as a security for its repayment, with maritime or extraordinary interest due to the marine risks is borne because of the loan provider; it becoming stipulated that when the ship be lost for the duration of the specific voyage, or during th'e minimal time, by the perils enumerated within the agreement, the financial institution shall in addition drop their cash. The Draco, 2 Sumn. 157, Fed. Cas. No. 4,057; White v. Cole, 24 Wend. (N. Y.) 126; Carrington v. The Pratt, 18 How. 03, 15 L. Ed. 267; The Dora (D. C.) 34 Fed. 343; Jennings v. Insurance Co., 4 Bin. (Pa.) 244, 5 Am. Dec. 404; Braynard v. Hoppock, 7 Bosw. (N. Y.) 157. Bottomry is a contract where a ship or its freightage is hypothecated as safety for a financial loan, that is to-be repaid only in the event the ship survives a particular danger, voyage, or duration. Civ. Code Cal.
Arrangement by which a ship's keel (hence the ship construction), yet not its cargo, was pledged as security for a financial loan. It absolutely was based on the ancient Greek custom in which all loans on a ship had been canceled if it did not go back to its home interface, and it is the forerunner nowadays's marine insurance coverage techniques. See in addition bottomry bond.