bottomry
/ˈbɑtəmri/
noun
- A contract in which a ship owner borrows money to finance a voyage and pledges the ship as collateral; if the ship is lost, the lender loses the money.
- The lender agreed to a bottomry, knowing the risk if the ship sank.
- In the 18th century, bottomry was a common way to fund long sea voyages.
- The captain took out a bottomry to pay for urgent repairs before the journey.