Bottomry

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Bottomry

in the civil law of bourgeois states, a loan agreement on pledge of a vessel and its cargo. The captain of a ship obtains a loan on bottomry at the shipowner’s expense. In the event that the ship is destroyed, the creditor loses the right of compensation for the sum he has granted; thus, there are higher interest rates on this type of loan than on the usual type. Bottomry is rarely utilized in contemporary practice.

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Bottomry