Bottomry

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BOTTOMRY

A contract, in maritime law, by which money is borrowed for a specified term by the owner of a ship for its use, equipment, or repair for which the ship is pledged as collateral. If the ship is lost in the specified voyage or during the limited time, the lender will lose his or her money according to the provisions of the contract. A contract by which a ship or its freight is pledged as security for a loan, which is to be repaid only in the event that the ship survives a specific risk, voyage, or period.

A bottomry bond is the instrument that embodies the contract or agreement of bottomry.

bottomry

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bottomry borrowing on the security of a ship. XVI. — Du. bodemerij, f. bodem BOTTOM; see -RY.