Bottomry

(Marit. Law.) It is in effect a mortgage of a ship, being an agreement entered into by an owner or his agent, whereby, in consideration of a sum of money advanced for the use of the ship, the borrower undertakes to repay the same, with interest, if the ship terminate her voyage succe fully; and binds, or hypothecates, the ship for the performance of the contract. The instrument by which this contract is effected is sometimes in the shape of a deed poll, and sometimes in that of a bond. On bottomry contracts the lender runs the risk of the voyage, and in consideration of the risk the interest he may take is unlimited. The master has authority to hypothecate a ship or its freight, at a foreign port, in case of nece ity, for the purpose of the voyage. In such case, if the loan be not repaid within the time prescribed, the agent of the lenders applies to the Court of Admiralty, with certain affidavits, and procures authority to arrest the ship, which may be sold, if nece ary, under the authority of the Court. Where several loans of this description have been made on the same voyage, the last lender is entitled to priority of payment out of the proceeds of the sale.