, or bottomry-bond
The contract of bottomry is a negotiable instrument, which may be put in suit by the person to whom it is transferred: it is in use in all countries of maritime commerce and interests. A contract in the nature of a mortgage of a ship, when the owner of it borrows money to enable him to carry on the voyage, and pledge the keel, or bottom of the ship, as a security for the repayment. If the ship be lost the lender also loses his whole money; but if it return in safety then he shall receive back his principal, and also the premium stipulated to be paid, however it may exceed the usual or legal rate of interest. The affair is, however, only regarded as valid upon the ground of necessity; and thus exacting more than the interest allowed by law is not deemed usury.