sooner repaid and satisfied. Given under our hands, this of

in the year

The act above cited requires, that all mortgages made in pursu- Entry. ance thereof shall be entered in a proper book by the clerk of the trustees, which may at all times be inspected without fee.

GUARANTEE.

Letter of Credit.

No. CCCLXI.

*A Guarantee for Payment of Monies to be advanced, for Goods taken on credit (1).

SIR,

IN consideration of your having agreed to sell to C. D. of, &c. goods
in the way of his trade [or if so to advance the said C. D. such sum
of money as he shall have occasion for at
I the under-
signed E. F. do hereby undertake to guarantee to you the due pay-
ment of all such goods [or money] as you may from time to time
sell [or advance or pay] to him or his order [add if for goods whether
the same be sold on credit or otherwise, and notwithstanding I shall
not have notice of any neglect or omission which may happen on
the part of the said C. D. in the payment for such goods according
to the credit that may be agreed on for the same] but so as my lia-
bility shall not at any time or in any event exceed the sum of

Letter of Credit.

(1) Letters of credit or surety guaranteeships are very common with merchants and others going into distant parts, as they avoid the trouble and risk of carrying specie for payment of expenses or making purchases; the money furnished or given credit for, is by the custom of merchants understood to be according to the coin or value of money of the place. If the person to whom the guarantee is addressed accept it, by supplying the goods or the money required, the surety or person guaranteeing is bound to pay by acceptance of bills drawn upon him, or otherwise to the order of the person accommodated, the credit being given to the surety and not to the party himself; hence the surety should be careful to preserve the letter of credit as a material evidence for his security, but should the person to whom the letter of credit is addressed refuse acceding to the terms of it, the bearer is to apply to a notary, as in the case of a refusal to accept a bill of exchange, in order that if the drawee have money of the drawer's in his hands, damages may be recovered for refusal; and sce 1 Beaw. Lex. Mer. 607.

L

AND I further agree that this guarantee or engagement shall not be withdrawn, but shall continue in full force until the expiration of one calendar month after notice to you by writing under my hand of my intention to discontinue or determine the same. Dated this

day of

To Mr. A. B.

E. F.

GUARANTEE.

Letter of Credit.

HYPOTHECATION.

Ship.

No. CCCLXII.

*An Hypothecation (1) of a Ship and Cargo.

KNOW ALL TO WHOM this Instrument of bond and bill of maritime risk and bottomry may come, that in the year from the birth of our Lord Jesus Christ, Anno

in the city of

on the day of the month of , in my office personally appeared (captain or master, &c.) captain of the imperial ship called the whom I know to be the real person, and he declared to me [common form] in the presence of the witnesses hereinafter mentioned, that within hours after the arrival of his said ship at , or any other port, and previous to beginning to make any delivery of the cargo at the port aforesaid, or any other port, he the captain, or whosoever may act in lieu of him, or in case of his absence, perform the duties of his said quality, shall or will pay, by this bill of risk, sea exchange, and bottomry to (lender), professed in the order of Christ, or to his order, the sum of £ sterling, principal and premium, of risk and sea exchange, at the rate of L per cent. the which principal he acknowledged to have received here of the said (lender) in the good current money of this realm, under the denomination

Hypothecation.

(1) The hypothecation of a ship is the pledging or mortgaging it for necessaries, which by the civil or admiralty law may be done by the master, factor, purser, or any reputed owner, in case of the ship or crew being in distress or want of necessaries either at sea or in harbour, and the contract will be binding on the traders and owner; see Bridgman's Ca. Hob. 11; Scarborough v. Lyrins, Noy Rep. 195.

As forms of this species of assurance are kept by the notaries, ready prepared in blank, I have thought it sufficient to insert one only.

Where the pledge is not for the necessaries of the ship, in case of extremities, it is denominated a conditional Bill of Sale, for which see ante, p. 57, and see post. next precedent.

of true and legitimate money of sea-exchange and bottomry on the
hull, keel and appurtenances of the aforesaid ship, and therewith
to supply the wants of the repairs, caulking, and of the cargo of
the same, on which he had effectively invested it, the said (lender)
taking upon himself, and in consideration of the aforesaid premium
of e
per cent. voluntarily agreed for and settled between
them, to run the sea risk on the said hull, keel and appurtenances
and cargo of the said ship, in her ensuing voyage, which the said
captain is about prosecuting, from this port of
to that

of
these being the risks which the aforesaid
(lender) takes on himself and is to run; such as of the sea, winds,
fire, stranding and shipwreck, enemies and false friends, detentions
of princes and reprisals, during the whole of the said voyage; ex-
cepting nevertheless those of barratry of the master, and of aver-
age, as well particular as general, the which are expressly excluded;
the which risk shall commence to run from the hour the ship shall
leave her first anchor to set sail from this port to that of
and shall cease in twenty-four hours after having come to an anchor;
and for the ready payment of the aforesaid sum, he the captain
binds himself, and his effects in general, dues and funds, both in
actual possession and future, and by special mortgage, the cargo,
freights due or that may become due; and in case of failure of the
prompt payment in due time, he binds himself, under this clause of
mortgage, to pay to him, or his order, for all the delay until full
payment, at and after the rate of L per cent. per annum; and
there being also present (mate) mate of the said ship, by whom it
was declared, that in case of the absence of the aforesaid captain,
he bound himself to fulfil the contents of this bond they thus exe-
cuted and accepted, after these presents being read to them, and I
(the notary) in the name of whomsoever it may concern being ab-
sent; to all which were witnesses present, (interpreter) who also
acted as interpreter as well for the captain as for the mate, he being
then vice-consul, and (lender), who, together with the parties,
signed thereto; (notary), the notary, wrote it; (presentees) and
(notary) notary public of notes in the city of

district, of his royal highness the prince

, and its

, our lord,

whom God preserve, caused this instrument to be transcribed from my book of notes, to which I refer myself, and have subscribed it and signed it in public form.

In testimony of the truth (notary)

HYPOTHECATION.

Ship.

(lender)

whose handwriting is certified by

(

) vice-consul.