BOT'TOMRY, BOND OR CONTRACT OF, IS a security by which a ship itself is expressly mortgaged and pledged by the owner or master, or hypothecated for repairs to the ship, or for money advanced for its otittit, or otherwise with relation to it. It is called a security by II., because the bottom or keel of the ship is figuratively used to express the whole of it. The loan or debt is repayable only in the event of the ship's safe arrival at the port or destination; and in consideration of this risk, the lender or creditor exacts a premium, the amount of which depends on the nature of the adventure. if the ship bu totally lost, the lender loses his money; but if she returns safely, lie recovers his prin cipal, together with interest at the rate agreed upon. These contracts are not treated as ordinary mortgages, and preferred according to the order of date; but inversely, tin, latest is preferred to the preceding, because it is presumed that the last loan saved tits ship, and in all cases necessity alone is the condition of the contract.
Such, generally, Is. the law of Great Britain; but the French law appears to be differ ent. By that system, a ship, as movable property, cannot be hypothecated. but remains subject to the debts of the seller until it has made a voyage at sea under the name and at the risk of the new purchaser, unless it has been sold under a decree; and it is a rills that the sale of a ship at sea shall never prejudice the creditors of the seller. Sew
IIESPONDENTIA and MERCHANT SHIPPING ACT.
BOTTO3f14 (finft)a term in maritime law. The act of congress (July 29. 1850) declares bills of sale, thortrages, hypothecations, and conveyances of vessels invalid against persons—other than th • grantor or mortgager, his heirs and t1 isees—not haring actual notice thereof, unless recorded in the office of the collector of the customs wheru such vessel is registered or enrolled, and expressly provides that tho. lien by bottomry on any vessel, created during her voyage by loan of money or materials necessary to repair or enable such vessel to prosecute a voyage, shall not lose priority, or be in any way affected by the provision of that act. Seamen have a lien prior to that of the holder of a bottoinry bond for their wages In the voyage in which the bottomry w11-7 incurred, or in any subsequent voyage: and the owners are also personally liable for seamen's wages. • if the holder of the bottomry bond is compelled to satisfy the seamen's lien, he has a right to compensation from the owners, and it has been held that he has a lieu upon the proceeds of the ship for his reimbursement.