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LOAN ON BOTTOMRY – made by shipowner/ship agent guaranteed by vessel itself, repayable upon
arrival at destination
LOAN ON RESPONDENTIA – taken on security of the cargo repayable upon the safe arrival at cargo
destination
REQUISITES OF A LOAN ON BOTTOMRY/ RESPONDENTIA
1. Ship owner borrows money for use, equipment or repair of vessel.
2. For a definite term and with extraordinary interest called premium
3. secured by pledge of vessel or portion thereof in the case of loan on bottomry or pledge of goods with respect to respondentia.
4. Loan repayment depends or conditioned on the safe arrival of the vessel for bottomry or safe arrival of goods for respondentia and obligation to repay is extinguished if pledged goods are lost.
5. Obligation to repay is extinguished if vessel is lost due to specified marine perils in the course of voyage or within limited time.
arrival at destination
LOAN ON RESPONDENTIA – taken on security of the cargo repayable upon the safe arrival at cargo
destination
REQUISITES OF A LOAN ON BOTTOMRY/ RESPONDENTIA
1. Ship owner borrows money for use, equipment or repair of vessel.
2. For a definite term and with extraordinary interest called premium
3. secured by pledge of vessel or portion thereof in the case of loan on bottomry or pledge of goods with respect to respondentia.
4. Loan repayment depends or conditioned on the safe arrival of the vessel for bottomry or safe arrival of goods for respondentia and obligation to repay is extinguished if pledged goods are lost.
5. Obligation to repay is extinguished if vessel is lost due to specified marine perils in the course of voyage or within limited time.
