Bottomry Loan in United States

Practical Information

Note: Some of this information was last updated in 1982

A loan made to the owner or master of a ship, usually in a foreign port in cases of emergency, for which the ship itself is pledged as security. The development of modern means of communication enabling masters to get assistance from the ship’s owners in emergencies has rendered this device largely obsolete. The lender has a lien (in U.S. law) on the ship enforceable in admiralty (or maritime law) upon its safe arrival at the port of destination. The lien becomes void, however, if the ship is lost before arrival. See also respondentia (in U.S. law); maritime lien (in U.S. law).

(Revised by Ann De Vries)

What is Bottomry Loan?

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