Title 18, Business Structure and Function

Upon a contract of bottomry, the parties may lawfully stipulate for a rate of interest higher than that allowed by the law upon other contracts. But a competent court may reduce the rate stipulated, when it appears unjustifiable and exorbitant. SOURCE: CC § 3022.

A lender upon a contract of bottomry, made by the master of a ship, as such, may enforce the contract, though the circumstances necessary to authorize the master to hypothecate the ship did not in fact exist, if, after due diligence and inquiry, the lender had reasonable grounds …

A stipulation in a contract of bottomry, imposing any liability for the loan independent of the maritime risks, is void. SOURCE: CC § 3024.

In case of a total loss of the thing hypothecated, from a risk to which the loan was subject, the lender upon bottomry can recover nothing; in case of a partial loss, he can recover only to the extent of the net value to the owner of the part saved. SOURCE: CC § 3025. COL120106

Unless it is otherwise expressly agreed, a bottomry loan becomes due immediately upon the termination of the risk, although a term of credit is specified in the contract. SOURCE: CC § 3026.

A bottomry loan is independent of possession, and is lost by omission to enforce it within a reasonable time. SOURCE: CC § 3027.

A bottomry lien, if created out of a real or apparent necessity, in good faith, is preferred to every other lien or claim upon the same thing, excepting only a lien for seamen's wages, a subsequent lien of materialmen for supplies or repairs indispensable to the safety of the shi…

Of two or more bottomry liens on the same subject, the latter in date has preference, if created out of necessity. SOURCE: CC § 3029. NOTE: No 1970 Civil Code '§ 3030-3035 existed. ---------- COL120106 COL120106