n. A contract in the nature of a mortgage, by which the\n owner of a ship, or the master as his agent, hypothecates and binds the\n ship (and sometimes the accruing freight) as security for the repayment\n of money advanced or lent for the use of the ship, if she terminates\n her voyage successfully. If the ship is lost by perils of the sea, the\n lender loses the money; but if the ship arrives safe, he is to receive\n the money lent, with the interest or premium stipulated, although it\n may, and usually does, exceed the legal rate of interest. See\n Hypothecation.