bottomry
Definition
- Noun (Maritime Law):
- A contract by which a ship is pledged as security for a loan: "bottomry" refers to a specific type of maritime loan where the borrower (usually the shipowner) borrows money to finance a voyage, and the ship itself (the "bottom" or hull) is used as collateral. If the ship is lost during the voyage, the lender forfeits the loan; if the voyage is successful, the loan is repaid with interest.
Usage Examples
- (The loan was guaranteed by the ship itself.)
- (The lender only receives repayment if the voyage is completed.)
Advanced Usage
"bottomry bond": A formal document that records the terms of a bottomry loan.
- The bottomry bond specified that the ship would be forfeited if the loan was not repaid within 60 days of docking.
"respondentia": A similar concept where the cargo, rather than the ship, is used as security. (Note: This is a related but distinct term.)
Variants and Related Words
Bottomry bond (n): the legal instrument used in a bottomry transaction.
- The bottomry bond was signed by both the shipowner and the lender.
Bottomry loan (n): the loan itself, secured by the ship.
- A bottomry loan often carries high interest due to the risk involved.
Synonyms
- Maritime loan: a loan secured by a ship or cargo.
- Hypothecation: the pledging of property (such as a ship) as security without transferring possession.
Related Idioms
- "On bottomry": referring to a loan secured by a ship.
- The ship was taken on bottomry to cover the cost of the crew's wages. (The loan was arranged using the ship as collateral.)
Historical Context
- Bottomry was a common practice in ancient and medieval maritime trade, allowing shipowners to fund voyages without selling their vessels. It is largely obsolete in modern shipping, replaced by marine insurance and standard commercial loans.