bottomry

Main Entry: bot·tom·ry
Pronunciation: 'bä-t&m-rE
Function: noun
Etymology: alteration of earlier bottomary, modification of Dutch bodemerij, from bodem bottom, hull, ship
: a contract under which the owner of a ship pledges the ship as collateral for a loan to finance a journey bottomry for…equipping the vessel —Louisiana Civil Code> —compare RESPONDENTIA

bottomry

a maritime contract (now almost obsolete) by which the owner of a ship borrows money for equipping or repairing the vessel and, for a definite term, pledges the ship as security-it being stipulated that if the ship be lost in the specified voyage or period, by any of the perils enumerated, the lender shall lose his money. A similar contract creating a security interest in the cargo is called a respondentia.

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