Bottomry Legal Meaning and Definition

Here is a simplified definition of the legal term Bottomry.

Bottomry (noun)

Bottomry refers to a specific type of maritime contract where the owner of a ship, vessel, or freight pledges these assets as collateral to secure repayment of a loan. This loan is generally used for repairs, lease of vessels, purchase of equipment, or other immediate needs associated with the ship's operation. In the event of a default, the lender can claim the pledged assets.