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.

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Bottomry