Title 18 — Business Structure and Function
60 chapters · 1,419 sections in this title.
18 GCA § 37101 What is Bottomry
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Bottomry is a contract by which a ship or its freightage is hypothecated as security for a loan, which is to be repaid only in case the ship survives a particular risk, voyage, or period. SOURCE: CC § 3017.
18 GCA § 37102 Who May Hypothecate Ship
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The owner of a ship may hypothecate it or its freightage, upon bottomry, for any lawful purpose, and at any time and place. SOURCE: CC § 3018.
18 GCA § 37103 When Master may Hypothecate
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The master of a ship may hypothecate it upon bottomry only for the purpose of procuring repairs or supplies which are necessary for accommodating the objects of the voyage, or of securing the safety of the ship. SOURCE: CC § 3019.
18 GCA § 37104 Same: No Alternative
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The master of a ship can hypothecate it upon bottomry only when he cannot otherwise relieve the necessities of the ship, and is unable to reach COL120106 adequate funds of the owner, or to obtain any on the personal credit of the owner, and when previous communication with him is…
18 GCA § 37105 Freight Money Loan
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The master of a ship may hypothecate freightage upon bottomry, under the same circumstances as those which authorize an hypothecation of the ship by him. SOURCE: CC § 3021.
18 GCA § 37106 Rate of Interest
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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.
18 GCA § 37107 Lender's Rights
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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 …
18 GCA § 37108 Stipulation for Personal Liability Void
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A stipulation in a contract of bottomry, imposing any liability for the loan independent of the maritime risks, is void. SOURCE: CC § 3024.
18 GCA § 37109 When to be Repaid
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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
18 GCA § 37110 Bottomry Loan Becomes Due
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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.
18 GCA § 37111 How Loan is Lost
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A bottomry loan is independent of possession, and is lost by omission to enforce it within a reasonable time. SOURCE: CC § 3027.
18 GCA § 37112 Preference Over Other Liens
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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…
18 GCA § 37113 Priority
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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