Bottomry

Definitions

  • Webster's Revised Unabridged Dictionary
    • n Bottomry (Mar. Law) A contract in the nature of a mortgage, by which the owner of a ship, or the master as his agent, hypothecates and binds the ship (and sometimes the accruing freight) as security for the repayment of money advanced or lent for the use of the ship, if she terminates her voyage successfully. If the ship is lost by perils of the sea, the lender loses the money; but if the ship arrives safe, he is to receive the money lent, with the interest or premium stipulated, although it may, and usually does, exceed the legal rate of interest. See Hypothecation.
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Century Dictionary and Cyclopedia
    • n bottomry In marine law, the act of borrowing money and pledging the bottom of a ship, that is, the ship itself, as security for its repayment. The contract of bottomry is in the nature of a mortgage, the owner of a ship borrowing money to enable him to carry on a voyage, and pledging the ship as security for the money. If the ship is lost, the lender loses the money; but if the ship arrives safe, he is to receive the money lent, with the interest or premium stipulated, although it may exceed the legal rate of interest. The tackle of the ship also is answerable for the debt, as well as the person of the borrower. When a loan is made upon the goods shipped, the borrower is said to take up money at respondentia, as he is bound personally to answer the contract. When the ship alone is pledged, the contract is called a bottomry bond; but when both ship and cargo are pledged, it is called a respondentia bond.
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Chambers's Twentieth Century Dictionary
    • n Bottomry a contract by which money is borrowed on the security of a ship or bottom
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Etymology

Webster's Revised Unabridged Dictionary
From 1st Bottom in sense 8: cf. D. bodemerij,. Cf. Bummery
Chambers's Twentieth Century Dictionary
A.S. botm; Ger. boden; conn. with L. fundus, bottom, Gael. bonn, the sole.

Usage

In literature:

A lender on bottomry shall have benefit of salvage.
"Our Legal Heritage, 5th Ed." by S. A. Reilly
A BOTTOMRY BOND is a kind of mortgage peculiar to shipping.
"Up To Date Business" by Various
The bottomry contract in Denmark, Sweden, and the north of Germany.
"The Sailor's Word-Book" by William Henry Smyth
The rate of interest was high, usually 12%; and in trading and bottomry the returns were much higher.
"Encyclopaedia Britannica, 11th Edition, Volume 5, Slice 8" by Various
Money advanced on bottomry is not liable in England for general average losses.
"Encyclopaedia Britannica, 11th Edition, Volume 4, Slice 3" by Various
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In poetry:

Yon laboring low horizon-smoke,
Yon stringent sail, toil not for thee
Nor me; did heaven's stroke
The whole deep with drown'd commerce choke,
No pitiless tease of risk or bottomry
"Individuality." by Sidney Lanier