Definitions for "Bottomry"
A contract in the nature of a mortgage, by which the owner of a ship, or the master as his agent, hypothecates and binds the ship (and sometimes the accruing freight) as security for the repayment of money advanced or lent for the use of the ship, if she terminates her voyage successfully. If the ship is lost by perils of the sea, the lender loses the money; but if the ship arrives safe, he is to receive the money lent, with the interest or premium stipulated, although it may, and usually does, exceed the legal rate of interest. See Hypothecation.
A loan to the master of a ship for the purpose of completing the voyage, repayable only if the voyage is completed (Obs.).
Money borrowed against a ship, or its equipment, repaid with interest upon the ship's arrival at port, and forfeited should the ship sink.