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Loans of bottomry or respondentia may be executed:
1. By means of a public instrument.
2. By means of a policy signed by the contracting parties and the broker taking part therein.
3. By means of a private instrument.
General Rule: The captain cannot contract loans on repondentia secured by the cargo, and should he do
so, the contract shall be void. Neither can he borrow money or bottomry for his own transactions,
Exceptions:
1. On the portion of the vessel he owns, provided, no money has been previously borrowed on the whole vessel, nor exists any other kind of lien or obligation chargeable against her.
2. When he is permitted to do so, he must necessarily state what interest he has in the vessel.
1. By means of a public instrument.
2. By means of a policy signed by the contracting parties and the broker taking part therein.
3. By means of a private instrument.
General Rule: The captain cannot contract loans on repondentia secured by the cargo, and should he do
so, the contract shall be void. Neither can he borrow money or bottomry for his own transactions,
Exceptions:
1. On the portion of the vessel he owns, provided, no money has been previously borrowed on the whole vessel, nor exists any other kind of lien or obligation chargeable against her.
2. When he is permitted to do so, he must necessarily state what interest he has in the vessel.
