Bottomry


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Bottomry

A loan the owner of a ship takes with the ship as collateral. Bottomry finances the ship's ability to transport cargo for one or more clients. Upon the ship's return, the ship's owner must repay the lender with interest (the payment comes from what the owner collects from clients); if the owner fails to do so, he/she loses the ship. Bottomry is also called bottomage.
References in periodicals archive ?
The Origin and Early History of Insurance, Including the Contract of Bottomry, London, P.
There are, by way of example, references to bottomry and respondentia, concepts which had been out of use for the best part of two centuries.
15) Although bottomry agreements were in common use in the trading centers of Italy before the year 1000, the Lombard merchants of northern Italy developed marine insurance coverages in the city of London by the end of the twelfth century.
The usury of Roman senators was not always as benign as Cato's investments in bottomry.
Bottomry, according to Rupp's Insurance & Risk Management Glossary, provided that any ship not returning to port be absolved of any debt on the ship itself or on its cargo.