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4 A. C. 1166.

Waiver of pledge by attachment or execution. — See 50 L. 719.

§ 2987. WHEN CONTRACT IS TO BE DEEMED A PLEDGE.

Every contract by which the possession of personal property
is transferred, as security only, is to be deemed a pledge.

History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 4 pars, annotation.

99 C. 516, 518, 33 P. 1081, 1082 (applied); 34 P. 708, 709 (con-
strued); 112 C. 598, 602, 53 A. S. 228, 44 P. 1063, 32 L. 479 (ap-
plied); 113 C. 463, 467, 45 P. 840 (applied); 123 C. 643, 648 (ap-
plied but erroneously cited as §2987 C. C. P.), 56 P. 468, 470
(correct citation); 133 C. 191, 195, 65 P. 381 (applied); 144 C.
631, 633, 78 P. 22 (applied); 150 C. 185, 190, 88 P. 825 (applied-
one becomes pawnbroker when); 6 C. A. 88, 91, 91 P. 532 (what
agreement is pledge of property as collateral security).

As to many miscellaneous matters as to pledges, see note
§ 2986, ante.

§2988. DELIVERY ESSENTIAL TO VALIDITY OF
PLEDGE. The lien of a pledge is dependent on possession,
and no pledge is valid until the property pledged is delivered
to the pledgee, or to a pledge-holder, as hereafter prescribed.

History: Enacted March 21, 1S72.

See Kerr's Cyc. C. C. for 37 pars, annotation.

59 C. 154, 158, 159 (construed), 168 (applied), 43 A. R. 245; 61
C. 405, 429 (applied); 71 C. 331, 334, 12 P. 228, 229 (construed);
34 P. 708, 709 (construed); 101 C. 445, 453 (cited erroneously as
§3988), 35 P. 1035, 1038 (correct citation); 112 C. 8, 13. 53 A. S.
151, 44 P. 357 (construed); 122 C. 279, 283, 68 A. S. 30, 54 P.
844 (applied); 122 C. 468, 470, 68 A. S. 47, 55 P. 253 (construed):
125 C. 183, 187, 57 P. 897 (applied); 3 C. A. 561, 569, 86 P. 820
(no lien, legal or equitable, exists when).

As to delivery and possession r>f pledge, see 4 L. 305.

1499



§§ 2989-2991 CIVIL CODE. [Div.III,Pt.IV.

As to how far pledge may be effectual of which pledgeor's
agent is made depositary, see 25 L. 577.

As to many miscellaneous matters as to pledges, see note
§ 2986, ante.

§2989. INCREASE OF THING. The increase of property
pledged is pledged with the property.

History: Enacted March 21, 1872.

As to dividend on stock pledged, see Kerr's Cyc. C. C. § 2989,
note.

As to many miscellaneous matters as to pledges, see note
§ 2986, ante.

§ 2990. LIENOE MAY PLEDGE PEOPERTY TO EXTENT

OF HIS LIEN. One who has a lien upon property may pledge
it to the extent of his lien.

Hi.story: Enacted March 21, 1872.

As to lienor's action for damages, see Kerr's Cyc. C. C. § 3338
and note.

As to many miscellaneous matters as to pledges, see note
§ 2986, ante.

§2991. REAL OWNER CANNOT DEFEAT PLEDGE OF
PROPERTY TRANSFERRED TO APPARENT OWNER FOR
PURPOSE OF PLEDGE. One who has allowed another to
assume the apparent ownership of property for the purpose
of making any transfer of it, cannot set up his own title, to
defeat a pledge of the property, made by the other, to a
pledgee who received the property in good faith, in the ordi-
nary course of business, and for value.

History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 16 pars, annotation.

52 C. 611, 616, 28 A. R. 647 (applied); 59 C. 154, 168, 43 A. R.
245 (construed); 90 C. 10, 13, 27 P. 159, 160 (applied); 121 C. 574,
576, 54 P. 72 (construed); 124 C. 282, 289, 71 A. S. 58, 57 P. 84
(applied); 3 C. A. 198, 200, 84 P. 778 (construed with subd. 2,
§ 2368 — purpose of § 2991 is to protect pledgee).

As to authority of factor to pledge, see Kerr's Cyc. C. C.
§ 2368 and note.

As to many miscellaneous matters as to pledges, see note
§ 2986, ante.

1500



TitXIV.Ch.III.] PLEDGE— LENDER. §§ 2992-2995

§2992. PLEDGE-LENDER, WHAT. Property may be
pledged as security for the obligation of another person than
the owner, and in so doing the owner has all the rights of a
pledgeor for himself, except as hereinafter stated.

HiMtory: Enacted March 21, 1872.

133 C. 191. 195, 6.5 P. 381 (applied).

As to many miscellaneous matters as to pledges, see ni)l«-
§ 2986, ante. ,

§ 2993. FLEDGE-HOLDEK, >VHAT. A pledgeor and pledgee
may agree upon a third person with whom to deposit the
property pledged, who, if he accepts the deposit, is called a
pledge-holder.

History: Enacted March 21, 1ST J.

61 C. 405, 429 (erroneously cited in dis. op. as §2903); 130 C.
258, 262, 62 P. 463 (referred to).

As to many miscellaneous matters as to pledtr'-fi. s.i- u<>io
§ 2986, ante.

§2994. WHEN PLEDGE-LE>DER MAY WITIIDHAW
I'KOPEHTV PLElXiEI). One who pledges property as secu-
rity for the obligation of another, cannot withdraw the prop-
erty pledged otherwise than as a pledgeor for himself might,
and if he receives from the debtor a consideration for the
pledge he cannot withdraw it without his consent.
History: Enacted March 21, 1872.

For commissioners' comment on this section, see Kerr's Cyc.
C. C. § 2994, note.

As to many miscellanootis matters as to pledgres, see note
8 2986, ante.

§2995. 0BI.IGAT1(»S OF rLEDGK-HOLDEli. A pledge-
holder for reward cannot exonerate himself from his under-
taking; and a gratuitous pledge-holder can do so only by giv-
ing reasonable notice to the pledgeor and pledgee to appoint
a new pledge-bolder, and in case of their failure to agree, by
depositing the property pledged with some impartial person,

1501



§§ 2996-2998 CIVIL CODE. [Div.III.Pt.IV.

who will then be entitled to a reasonable compensation for his
care of the same.

History: Enacted March 21, 1872.

For commissioners' comment on this section, see Kerr's Cyc.
C. C. § 2995, note.

As to many miscellaneous matters as to pledges, see note
§ 2986, ante.

§2996. PLEDGE-HOLDER MUST ENFORCE RIGHTS OF
PLEDGEE. A pledge-holder must enforce all the rights of
the pledgee, unless authorized by him to waive them.

History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 3 pars, annotation.

121 C. 515, 520, 53 P. 1119 (applied); 130 C. 258, 262, 62 P. 463
(construed).

As to many miscellaneous matters as to pledges, see note
§ 2986, ante.

§ 2997. OBLIGATION OF PLEDGEE AND PLEDGE-HOLD-
ER, FOR REWARD. A pledgee, or a pledge-holder for reward,
assumes the duties and liabilities of a depositary for reward.

History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 24 pars, annotation.

125 C. 596, 599 (applied but erroneously cited as §2887), 58
P. 186, 187 (correct citation).

As to care required of pledgees, see 83 A. S. 392.

As to depositary for reward, see ante § 1852.

As to diligence required of one who holds negotiable paper
as collateral security, see 34 A. D. 451.

As to duty of pledgee to care for tiling pledged, see 17 L.
193.

As to liability of pledgee as shareholder, see 36 L. 139.

As to many miscellaneous matters as to pledges, see note
§ 2986, ante.

§2998. GRATUITOUS PLEDGE-HOLDER. A gratuitous
pledge-holder assumes the duties and liabilities of a gratuitous
depositary.

History: Enacted March 21, 1872.

125 C. 596, 599, 58 P. 186 (construed).

As to gratuitous depositary, see Kerr's Cyc. C. C. §§ 1844-1847
and note.

1502



Tit.XIV.ch.III.] MISREPRESENTATION. §§ 2999-3001

As to many miscellaneous matters as to pledges, see note
§ 2986, ante.

As to obligations of pledge-holder, see Kerr's Cyc. C. C.
§ 2995 and note.

§ 2999. DEBTOR'S MISKEPKESEMATIOX OF VALIE OF

PLEDGE. Where a debtor has obtained credit, or an exten-
sion of time, by a fraudulent misrepresentation of the valup
of property pledged by or for him, the creditor may demand
a further pledge to correspond with the value represented;
and in default thereof may recover his debt immediately,
though it be not actually due.

HiNtory: Enacted March 21, 1872, founded upon Civ. Code
I^a., art. 3141.

§3000. WHEN PLEDGEE MAY SELL. When performance
of the act for which a pledge is given is due, in whole or in
part, the pledgee may collect what is due to him by a sale
of property pledged, subject to the rules and exceptions here-
inafter prescribed.

Ili.storyi Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 20 pars, annotation.

66 C. 97. 98, 4 P. 1062, 1063 (applied); 125 C. 59fi. 6on. .-,s P.
ISO (construed); 128 C. 202, 208. 60 P. 778 (applied i; IH (\ 32r>,
333. 77 P. 937 (construed).

As to effect of unaccepted tender upon pledge, s«e 33 L. 237.

As to foreclosure of pU'dge, see Kerr's Cyc. C. C. §3011 and
note.

As to many misc»llaneous matters as to pledges, see note
8 29S6, ante.

As to remedies of pledgees, see 79 A. D. 499.

As to rights and reinetlies of parties to collateral securities,
see 32 A. S. 711.

As to sale of pledpre, see I T^. 305.

§3001. WHEN PLEDCiEE MIST DE.>IA>D PEKFOKM-
A>'("E. Hefore property pled.ged can be sold, and after per-
formance of the act for which it is security is due. the pledgee
must demand performance thereof from the debtor, If the
debtor can be found.

History: Enacted March 21. 1872; amended Mnrcli .".o. 1ST1.
Code Amdts. 1873-4, p. 262.

1503



/



§§ 3002-3004 CIVIL CODE. [Div.III.Pt.IV.

See Kerr's Cyc. C. C. for 5 pars, annotation.

62 C. 426, 439 (construed); 82 C. 199, 200, 22 P. 1112 (con-
strued); 125 C. 596, 600, 58 P. 186 (construed); 128 C. 202, 208,
60 P. 778 (applied); 123 F. 24, 26 (construed and applied with
§ 3002 — effect of pledgeor's death).

As to many miscellaneous matters as to pledges, see note
§ 2986, ante.

§ 3002. NOTICE OF SALE TO PLEDGEOR. A pledgee must
give actual notice to the pledgeor of the time and place at
which the property pledged will be sold, at such a reasonable
time before the sale as will enable the pledgeor to attend.

History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 5 pars, annotation.

68 C. 522, 526, 9 P. 947 (referred to); 82 C. 199, 200, 22 P. 1112
(construed); 125 C. 596, 600, 58 P. 186 (construed); 128 C. 202,
208, 60 P. 778 (applied); 3 C. A. 387, 393, 86 P. 729 (applied with
other sections); 123 F. 24, 26 (construed and applied with
§ 3001 — effect of pledgeor's death).

As to many miscellaneous matters as to pledges, see note
§ 2986, ante.

§3003. WAIVER OF NOTICE OF SALE. Notice of sale
may be waived by a pledgeor at any time; but is not waived
bj" a mere waiver of demand of performance.

History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 7 pars, annotation.

68 C. 522, 526, 9 P. 947 (referred to); 82 C. 199, 201, 22 P.
1112 (construed); 125 C. 593, 600, 58 P. 186 (construed); 3 C. A.
387, 393, 86 P. 729 (applied with other sections).

As to many miscellaneous matters as to pledges, see note
§ 2986, ante.

§3004. WAIVER OF DEMAND. A debtor or pledgeor
waives a demand of performance as a condition precedent to
a sale of the property pledged, by a positive refusal to per-
form, after performance is due; but cannot waive it in any
other manner except by contract.

History: Enacted March 21, 1872.

82 C. 199, 201, 22 P. 1112 (construed); 125 C. 596, 600, 58 P.
186 (construed).

As to many miscellaneous matters as to pledges, see note
§ 2986, ante.

1504



Tit.XIV.Ch.III.] PLEDGEE'S SALE. §§3005-3007

§3005. SALE MUST BE BY AUCTION. The sale by
pledgee, of property pledged, must be made by public auction,
in the manner and upon the notice of sale of personal prop-
erty under execution.

HIMoryt Enacted March 21. 1872; amended April Ifi. 1909.
Stats, and Amdts. 1909, p. 972.

See Kerr's Cyc. C. C. for 3 pars, annotation.

66 C. 97. 98, 4 P. 1062 (applied); 68 C. 522. 526, 9 P. 947 (re-
ferred to); 82 C. 199, 200. 22 P. 1112 (applied); 113 C. 475. 478,
45 P. 815 (referred to); 125 C. 596, 600. 58 P. 186 (construed);
3 C. A. 387, 393, 86 P. 729 (applied with other sections).

As to many miscellaneous matters as to pkilges, see note
§ 2986, ante.

As to pledgee's conversion of pledged projxrty hy invalid
sale, see 43 L. 737.

§3(M)«. PLEDGEE'S SALE OF SECURITIES. A pledgee
cannot sell any evidence of debt pledged to him. e.\cei)t the
obligations of governments, states, or corporations; but he
may collect the same when due.

Hlfttorr: Enacted March 21. 1872.

See Kerr's Cyc. C. C. for 11 pars, annotation.

85 C. 122. 129. 24 P. 642, 643 (construed); 114 C. 126, 129. 45 P.
1068 (construed); 121 C. 515, 520. 53 P. 1119 (applied); 125 C.
596. 600. 58 P. 186 (con.«trued) : 127 C. 171. 175, 59 P. 587 (ap-
plied); 134 C. 287. 289. 66 P. 324 (applied); 152 C. 419. 425. 93
r. 114 (pledgee of life Insurance policy may collect It when
due); 4 C. A. 400. 402, 88 P. 373 (pledgee may sue to collect
note).

As to extent of recovery by pledgee on note, see 44 L. 243.

As to many miscellaneous matters as to pledges, see note
i 2986. ante.

As to right of pli'dgoe to soil securities; negotiable Instrti-
ments held as collateral; obllg.Ttlons nf pledgee; d«-mand and
notice, see 4 L. 586.

§3007. SALE (>> THE IIE.M VM) OF THE IMKIK.EOK.

Whenever i)ro|)tMty |)l»Ml^(>d can l)e sohl for a price .sufTicient
to .satisfy the claim of the pledgee, the pledgeor may require
it to be sold, and its proceeds to be applied to such satisfac-
tion, when due.

Illntory: Enact.. I March 21, 1872.
Kerr's C. C— 48 1505



§§ 3008-3010 CIVIL CODE. [Div.TII,Pt.IV.

See Kerr's Cyc. C. C. for 2 pars, annotation.
125 C. 596, 600, 58 P. 186 (construed).

As to many miscellaneous matters as to pledges, see note
§ 2986, ante.

§ 3008. SURPLUS TO BE PAID TO PLEDGEOR. After a
pledgee has lawfully sold property pledged, or otherwise col-
lected its proceeds, he may deduct therefrom the amount due
under the principal obligation, and the necessary expenses
of sale and collection, and must pay the surplus to the
pledgeor, on demand.

History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 7 pars, annotation.

101 C. 445, 453, 35 P. 1035 (cited — transfer of note by way of
pledge); 125 C. 596, 600, 58 P. 186 (construed).

As to many miscellaneous inatters as to pledges, see note
§ 2986, ante.

§ 3009. PLEDGEE MAY RETAIN. When property pledged
is sold by order of the pledgeor before the claim of the
pledgee is due, the latter may retain out of the proceeds all
that can possibly become due under his claim until it becomes
due.

History: Enacted March 21, 1872; amended March 30, 1874,
Code Amdts. 1873-4, p. 262.

See Kerr's Cyc. C. C. for 2 pars, annotation.
125 C. 596, 600, 58 P. 186 (construed).

As to many miscellaneous matters as to pledges, see note
§ 2986, ante.

§3010. PLEDGEE'S PURCHASE OF PROPERTY
PLEDGED. Whenever property pledged is sold at public auc-
tion, in the manner provided by section three thousand and
five of this code, the pledgee or pledge-holder may purchase
•said property at such sale.

History: Enacted March 21, 1872; amended March 8, 1895,
Stats, and Amdts. 1895, p. 26.

See Kerr's Cyc. C. C. for 6 pars, annotation.
62 C. 426, 439 (applied); 125 C. 596, 600, 58 P. 186 (construed);
3 C. A. 387, 393, 86 P. 729 (applied with other sections).

1506



Tit.XIV.ch.IIIl FORECLOSING REDRMPTIOX. §3011

As to many inisc-i.llaiu'ous inattt-rs as to pli-dges, see note
I 2986, ante.

§3011. PLEIXJKK MAY FOKEt'LOSE RKJHT (►F KEDE.Ml'-

TION. Instead of sellins property pledged, as hereinbefore
provided, a pledgee may foreclose the right of redemption by
a judicial sale, imder the direction of a competent court; and
in that case may be authorized by the court to purchase at the
sale.

Ili.slor.v: Enacted March 21, 1S72.

See Kerr's Cye. C. C. for 11 pars, annotation.

66 C. 97, 98, 4 P. 1062 (applied): 85 C. 122. 129, 24 V. 642.
643 (applied); 125 C. 596, 60n, 58 P. 186 (construed); 127 C. 171.
175, 58 P. 587 (applied); 134 C. 287, 289, 66 P. 324 (construed).

As to many miscfllaneoii.s matters as to pleilges, si'o note'
! 2986. ante.



1507



§ 3017 CIVIL CODE. [Div.III.Pt.IV.

CHAPTER IV.

BOTTOMRY.

§ 3017. Bottomry, what.

§ 3018. Owner of ship may hypothecate.

§ 3019. When master may hypothecate ship.

§ 3020. Same. [When owner cannot be readied, etc.]

§ 3021. When master may hypothecate freight money.

§ 3022. Rate of interest.

§ 3023. Rights of lender, when no necessity for bottomry

existed.

§ 3024. Stipulation for personal liability void.

§ 3025. When money loaned is to be repaid.

§ 3026. When bottomry loan becomes due.

§ 3027. Bottomry lien, how lost.

§ 3028. Preference of bottomry lien over other liens.

§ 3029. Priority of bottomry liens.

§3017. BOTTOMRY, WHAT. Bottomry is a contract by
which a ship or its freightage is hypothecated as security for
a loan, which is to be repaid only in case the ship survives a
particular risk, voyage, or period.

History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 40 pars, annotation.

BOTTOMRY AND RESPONDENTIA.

As to bottomry bond. — See 19 L. ed. 651; 1 W. & P. 849.

Same — As a negotiable instrument. — See 5 W. & P. 4768.

Same — Circumstances justifying giving of. — See 2 Obiter Dig.
197.

Same — Definition of bottomry bond. — See 2 Obiter Dig. 196; 1
W. & P. 849.

Same — 'Distinguished from implied liens. — See 2 Obiter Dig.
196.

Same — Good in part and bad in part. — See 2 Obiter Dig. 198.

Same — Liberally regarded by admiralty courts. — See 2 Obiter
Dig. 196.

Same — Personal liability of owner. — See 2 Obiter Dig. 197.

Same — Property to which attaches. — See 2 Obiter Dig. 197.

Same — Rules of law as to abandonment inapplicable to. — See
2 Obiter Dig. 198.

Same — "Vests no indefeasible interest. — See 2 Obiter Dig. 197.

As to bottomry by owner. — See 4 Encyc. L. 740.

1508



Tit.XIV,Ch.IV.] HVPOTHECATION. §§ 3018. 3019

As to capacity or authority of master to liypotliecate or make
bond. — See 44 Cent. Dig. col. 384, §362; 4 Encyc. L. 741.

Same — Interest in cargo or vessel. — See 44 Cent. Dig. col. 388,
§363.

Same — Necessity of communicating witli owner. — See 44 Cent.
Dig. col. 388, § 364.

As to capacity or autliority to talte bond. — See 44 Cent. Dig.
col. 389, § 365.

As to definition of bottomry. — Sec 5 A. D. 404; XH A. I). 34lt;
15 L. ed. 267; 4 Encyc. L. 376; 1 W. & P. 849.

As to duty of lendor to ascertain and sliow necessity. — See
44 Cent. Dig. col. 393, §368; 4 Encyc. L. 745.

As to laches. — See 4 Encyc. L. 749.

As to loss of vessel or cargo and lien on salvage and other
proceeds. — See 44 Cent. Dig. col. 395, §371.

As to nature of the contract. — See 44 Cent. Dig. col. 3S4. §361;.
4 Encyc. L. 737.

As to the nature of the lien. — See 4 Encyc. L. 749.

As to necessity for hypothecation and consideration for bond
in general. — See 44 Cent. Dig. col. 384. S8 362-364; col. 390, §366.

As to payment and satisfaction. — See 44 Cent. Dig. col. VM.
§372.

As to payment of advances. — See 4 Encyc. I>. 7 48.

As to right of master to hypothecate vessel anil freight and
cargo. — See 63 A. D. 638.

As to rights of Indorsee. — See 44 Cent. Dig. col. 39T>. ( 370.

As to security for pre-exrstlng debt. — See 44 C>Mit. Dig. <ol.
392, § 367.

As to time of the loan. — So.- 4 Encyc. L. 7 4 1.

As to waiver of right to bond. — See 4 1 C«nt 1 "Ik. lol. 3'.»5.
§ 369; 4 Encyc. L. 749.



§3018. <>\VM-;K of .ship .M.VV HVIMHUKC.VTK. The

owner of a ship may hypothecate it or It.s freightage, upon
bottomry, for any lawful purpf).se. and at any lime and i)Iaee.

IliMtoryi Enact-(l March 21, 1872.

See Kerr's Cyc. C. C. for 15 pars, annotation.

As to bottomry and respondentia, ace note §3017. .into.



§301J). >VHK> MASIKK }\ \\ IH roTIIFC.VTK SHIT. The

master of a ship may hypothecate it upon bottomry only for
the purpose of procuring repairs or supplies which are neces-

1509



§§3020-3023 CIVIL CODE. [Div.III.Pt.IV.

sary for accomplishing the objects of the voyage, or for secur-
ing the safety of the ship.

History: Enacted March 21. 1872.

See Kerr's Cyc. C. C. for 64 pars, annotation.

As to bottomry and respondentia, see note § 3017, ante.

§ 3020. SAME. [WHEN OWNER CANNOT BE REACHED,

ETC.] The master of a ship can hypothecate it upon bottomry
only when he cannot otherwise relieve the necessities of the
ship, and is unable to reach adequate funds of the owner, or
to obtain any upon the personal credit of the owner, and when
previous communication with him is precluded by the urgent
necessity of the case.

History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. § 3019 and note.

As to bottomry and respondentia, see note § 3017, ante.

§ 3021. WHEN MASTER MAY HYPOTHECATE FREIGHT
MONEY. The master of a ship may hypothecate freightage
upon bottomry, under the same circumstances as those which
authorize an hypothecation of the" ship by him.
History: Enacted March 23, 1872.

See Kerr's Cyc. C. C. for 4 pars, annotation.

As to bottomry and respondentia, see note § 3017, ante.

§3022. RATE OF INTEREST. Upon a contract of bot-
tomry, the parties may lawfully stipulate for a rate of interest
higher than that allowed by the law upon other contracts.
But a competent court may reduce the rate stipulated when
it appears unjustifiable and exorbitant.

History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 12 pars, annotation.

As to bottomry and respondentia, see note § 3017, ante.

§ 3023. RIGHTS OF LENDER, WHEN NO NECESSITY FOR
BOTTOMRY EXISTED. A lender upon a contract of bottomry,

1510



1



Tit.XI V.ch.IV.] RETURN OF LOAN— Dl'E WHEN. §g 3024-3026

made by the master of a ship, as such, may enforce the con-
tract, though the circumstances necessary to authorize the
master to hypothecate the ship did not in fact exist, if. after
due diligence and inquiry, the lender had reasonable Krounds
to believe, and did in pood faith believe, in the existence of
such circumstances.

IIlMturyt Enacted March 21, 187:;.

See Kerr's Cyc. C. C. for 23 pars, annotation.

A8 to bottomry anil respondentia, see note i 3017, ante.

As to owner's liability for niastt^r's contracts, sue 16 A. D.

440.



§8024. STIPULATION' FOR PERSONAL LIAHILITV VOIO.

A stipulation in a contract of bottomry, imposing any lia-
bility for the loan independent of the maritime rislvs, is void.

IliHioryt Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 4 para, annotation.

A« f,, l,,.ti..iiirv Mil.! r.sp..>ii|.i>i i'l «•■.■ n..fo 5?.iilT mito

§:{(H».-). >V1IK> MONKV LOANKU IS TO liK KKPAIO. In

ca.so of a total loss of the thing hypothecated, from a ri.-^k to
which the loan was subject, the lender upon bottomry can
recover nothlnp:; in case of a partial loss, he can recover only
to the extent of the net value to the owner of the part saved.
lllMlorv: Enacted March 21. 1872.

See Kerr's Cyc. C. C. for 8 pars, annotation.

As to Ixittomry and r>j«p"ndentln. nee note f 3017. ftnt«».

§30l»«. >VHK> BOTTO.MKY L(»A> HL(OMKS IH K. I nless
It is oIluMwI.se expressly agreed, a bottomry loan becomes due
immediately upon the termination of the risk, although a term
of credit Is specified in the contract

Ilii«i>r>i Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 8 pars, annotation.
As »■> i...ii.>inry and respondentia, see note |T"'' •nto.

1511



§§ 3027-3029 CIVIL CODE. [Div.III,Pt.IV.

§3027. BOTTOMRY LIEN, HOW LOST. A bottomry lien
is independent of possession, and is lost by omission to en-
force it within a reasonable time.

History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 10 pars, annotation.

As to bottomry and respondentia, see note § 3017, ante.

§3028. PREFERENCE OF BOTTOMRY LIEN OVER
OTHER LIENS. 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 lien for
seamen's wages, a subsequent lien of materialmen for supplies
or repairs indispensable to the safety of the ship, and a subse-
quent lien for salvage.

Hi-story: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 4 pars, annotation.

As to bottomry and respondentia, see note § 3017, ante.

§ 3029. PRIORITY OF BOTTOMRY LIEN. Of two or more
bottomry liens on the same subject, the latter in date has
preference, if created out of necessity.

History: Enacted March 21, 1872.

As to bottomry and respondentia, see note § 3017, ante.
As to second bottomry bond, see Kerr's Cyc. C. C. § 3029, note;
also note § 317, ante.



1512



Tit.XIV.ch.V.l HKSPONDENTIA. §§3036-3038



CHAPTER V.

RESPONDENTIA.

i 3036. Hfspondontla, what.

8 3037. lit'spondontia by owner.

§ 3038. }i<spon(Jentia by master.

S 3039. Rate of Intorest.

I 3040. Obligratlons of ship-owner.

§30:{(J. KESIM)M)E>TI.V, WH.VT. Respondentia is a con-



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