bottomry

[ bot-uhm-ree ]

Phonetic (Standard)IPA

noun

, Marine Law.

, plural bot·tom·ries.

a contract, of the nature of a mortgage, by which the owner of a ship borrows money to make a voyage, pledging the ship as security.

bottomry

/ ˈbɒtəmrɪ /

maritime law a contract whereby the owner of a ship borrows money to enable the vessel to complete the voyage and pledges the ship as security for the loan

1615–25; modeled on Dutch bodemerij, equivalent to bodem bottom + -erij -ry

C16: from Dutch bodemerij , from bodem bottom (hull of a ship) + -erij -ry

Money advanced on bottomry is not liable in England for general average losses.

A bottomry bond gives no remedy to the lenders against the owners of the ship or cargo personally.

Amongst these in all cases are found claims for salvage, wages, bottomry under certain restrictions, and necessaries.

Loans of this character have ever since been common in maritime lands, under the name of bottomry and respondentia bonds.

The rate of interest was high, usually 12%; and in trading and bottomry the returns were much higher.

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