Bottomry

In maritime law, a contract by which a ship’s owner pledges the ship or part of the ship as security against a loan used to equip or repair the vessel. The document stipulates that the lender shall lose his money if the ship is lost in the specified voyage by any of the perils listed. When the loan is made on the goods on board the ship, which are to be sold during the course of the voyage, the borrower’s personal responsibility is deemed the principal security for the performance of the contract.