California Harbors and Navigation Code

§ 456

HNC § 456Div. 3 · Ch. 2 · Art. 1

Statute text

A lender upon a contract of bottomry, made by the master of a vessel, as such, may enforce the contract, though the circumstances necessary to authorize the master to hypothecate the vessel did not in fact exist, if, after due diligence and inquiry, the lender had reasonable grounds to believe, and did in good faith believe, in the existence of such circumstances.

Legislative history

Enacted by Stats. 1937, Ch. 368.