User Contributed Dictionary
Noun
Extensive Definition
A bottomry, or bottomage, is when the master of
a ship borrows money upon
the bottom or keel of it,
so as to forfeit the ship itself to the creditor, if the money is
not paid at the time appointed with interest at the ship's safe
return.
This occurs in cases where the ship needs urgent
repairs during the course of its voyage or some other emergency
arises and it is not possible for the master to contact the owner
to arrange funds, allowing him to borrow money on the security of
the ship or the cargo by executing a bond.
Where both cargo and ship are hypothecated, the bond is
called a bottomry bond. Due to the bond's relatively low priority
as against other liens in the event of a libel against the ship,
the use of bottomry bonds declined greatly in the 19th century and
the subject is today of interest only to legal historians.
The Code of
Hammurabi describes a form of bottomry that was a type of
insurance. A bottomry
would be taken, but the repayment would be contingent on the ship
successfully completing the voyage.
bottomry in German: Bodmerei
bottomry in Swedish: Bodmeri