What is LawBrain?
It's a living legal community making laws accessible and interactive. Click Here to get Started »


From lawbrain.com

Revision as of 16:59, 2 December 2009 by Admin (Talk | contribs)

(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)

A contract, in maritime law, by which money is borrowed for a specified term by the owner of a ship for its use, equipment, or repair for which the ship is pledged as collateral. If the ship is lost in the specified voyage or during the limited time, the lender will lose his or her money according to the provisions of the contract. A contract by which a ship or its freight is pledged as security for a loan, which is to be repaid only in the event that the ship survives a specific risk, voyage, or period.

A bottomry bond is the instrument that embodies the contract or agreement of bottomry.