ARTICLE 1. Bottomry [450. - 462.]
Article 1 enacted by Stats. 1937, Ch. 368.
§§ 450–462 · 13 sections
- § 450 Bottomry is a contract by which a vessel or its freightage is hypothecated as security for a loan, which is to be repaid only if the vessel survives a…
- § 451 The owner of a vessel may hypothecate it or its freightage, upon bottomry, for any lawful purpose, and at any time and place.
- § 452 The master of a vessel may hypothecate it upon bottomry only for the purpose of procuring repairs or supplies which are necessary for accomplishing the objects…
- § 453 The master of a vessel can hypothecate it upon bottomry only when he can not otherwise relieve the necessities of the vessel, and is unable to reach adequate…
- § 454 The master of a vessel may hypothecate freightage upon bottomry, under the same circumstances as those which authorize an hypothecation of the vessel by him.
- § 455 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…
- § 456 A lender upon a contract of bottomry, made by the master of a vessel, as such, may enforce the contract, though the circumstances necessary to authorize the…
- § 457 A stipulation in a contract of bottomry, imposing any liability for the loan independent of the maritime risks, is void.
- § 458 If there is a total loss of the thing hypothecated, from a risk to which the loan was subject, the lender upon bottomry can recover nothing; if a partial loss,…
- § 459 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…
- § 460 A bottomry lien is independent of possession, and is lost by omission to enforce it within a reasonable time.
- § 461 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…
- § 462 Of two or more bottomry liens on the same subject, the latter in date has preference, if created out of necessity.