BOTTOMRY

is the hypothecation or pledge of a ve el for the payment of a debt The creditor has no right to take po e ion of the ship until the exp i last ration of the time for which the loan is made, and then (under a bottomry contract in the usual form) the only by the intervention of an admiralty court. If pre the loan is not repaid at the stipulated time, the lender applies to an admiralty court, which (the was truth of the claim being establiuied) decrees a sale of disthe ship to satisfy the debt. The conditions of such give a contract usually are that, if the ship is not lost or destroyed by those risks which the lender agrees to in run, tiie debt is to become absolute. The risks pro a umed by the lender are usually the same as au>e the enumerated in a common policy of insurance. If the apship is wholly lost in consequence of these risks, the lender loses his loan. In case of a partial damage, emthe the bottomry bond usually provides that this damage the shall be borne by the lender in the proportion of the and amount loaned to the value of the ^p. If this amount is equal to one-half of the value of the ship, the lender is to bear one-half of the amount of such by lo , . As the lender thus a umes a certain risk, of he is justly entitled to a greater interest than if he did not thus take the hazard of the lo of the "whole who loan; and this is called marine interut. He is en* the titled to the usual rate of interest on his loan, in addition to the usual premium of insurance for the same voyage or period. The stipulation for such » rate of marine interest Ib not a violation of the Ijiwm against usury, for it is not merely a compensation for the use of the money lent, but also for the risk a umed. and The ship-owner may borrow money on bottomry, whether his ve el be in port or at sea. Hut the of captain of the ship, as such, cannot so bontrw "when in the port where the owner rerides, or near enough to consult him on any emergency. In any other port he may pledge the ship on bottomry for the purpose of raising money nece ary for repairing, supplying, and navigating her, if he can obtain it in no other way. If he borrow thus without nece ity the bond is yoid, and the lender can look only to the personal responsibility of the captain. 326