Definition from Wiktionary, the free dictionary
bottomry (plural bottomries)
- (nautical) An early form of maritime contract in which owner of a ship could borrow money using the ship as collateral.
1996, Susan Hodges, Law Of Marine Insurance, page 19:
- Section 10 states that, ‘The lender of money on bottomry and respondentia has an insurable interest in respect of the loan’. A lender on ‘bottomry’ is, as its name suggests, a person who advances money to a shipowner on the security of (the bottom [of]) the ship.
- 1999 , John Bouvier, Daniel A. Gleason, Institutes of American Law, Volume 1, New Edition, page 309,
- There is much resemblance between bottomry and insurance. In one, the lender takes the risks, and in the other, the insurer. […] If these contracts resemble each other, there are also many differences between them. In bottomry, the lender actually furnishes a certain sum of money; in insurance, the insurer furnishes nothing; on the contrary, he receives a premium, which is frequently paid to him at the time of the agreement, but which when it is not paid in cash is a claim which he may assign, or for which he may procure a guaranty.
- 2005, Paul Arthur Van Dyke, The Canton Trade: Life And Enterprise on the China Coast, 1700-1845, footnote, page 225,
- 25. The supercargo Colin Campbell, for example, mentioned in 1732 that the first Dutch supercargo Schultz was secretly investing in the bottomry market.