Bottomry and Respondentia
- Bottomry is a contract in the nature of a mortgage by which money is
borrowed to be applied to the necessities of a ship. The keel or
bottom of the ship (a part signifying the whole) and the freight which it
will earn and the cargo on board are the security thereby given for the
repayment of the sum lent, together with interest. Both principal and
interest are forfeited if the ship is lost on the voyage. But no property
passes as by mortgage, and no possession is given as by a pledge.
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- Respondentia is a similar contract. The security here is only the
cargo laden on board and the money is raised for the necessities of the
cargo only.
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- BCAS: 2102-1013
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