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Bottomry Bonds
- Bottomry bonds are not used in modern world.
- Bottomry is a contract by which ship's owner borrows money for equipping or repairing his vessel and pledge the ship as security for a definite period of time.
- If the ship is lost during that period due to any of the named perils the lender will lose his money.
Respondentia Bonds
- Similar contract as of bottomry but ship is replaced with cargo.
In olden days master of a ship use to borrow money for vessel equipping or repair as it was difficult to contact the ship owner in short time period or unavailability of money from vessel's owner.
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