Chapter 20

Tenth Edition (2017)

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.
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.


BCAS: 7103-1001