Bottomry


Also found in: Dictionary, Legal, Encyclopedia, Wikipedia.

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 ?
85) Justice Story further held that a bottomry instrument, similar to an insurance policy in that they both are executed on land and "intrinsically respect maritime risks, injuries and losses," (86) was a maritime contract, and thus part of the admiralty jurisdiction.
It included collisions between ships and injuries committed on the high seas, salvage services not rendered within the body of a county, possession of ships where no title was in question, bottomry and respondentia, and claims for seaman's wages where there had been no special contract.
Like the other two innovations, debt forgiveness is not entirely new; it dates back to the origins of insurance in contracts such as bottomry.