Nauticum Foenus: The Legal Insights into Maritime Interest Rates

Definition & Meaning

Nauticum foenus is a Latin term that translates to "nautical interest." It refers to an extraordinary interest rate applied to loans for financing maritime ventures, particularly those that are considered hazardous. This type of interest is often associated with loans that are only repaid if the voyage is successful. Another term used for this concept is "usura maritima." Additionally, "nautica pecunia" describes loans to shipowners that are contingent upon the successful completion of a voyage.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A shipping company takes out a loan to finance a voyage to deliver goods across the ocean. The lender charges an extraordinary interest rate due to the risks of piracy and adverse weather conditions. The loan is only repaid if the goods reach their destination safely.

Example 2: A shipowner seeks financing for a new vessel. They enter into a loan agreement that stipulates repayment only if the ship successfully completes its first voyage without incident. (hypothetical example)

State-by-state differences

Examples of state differences (not exhaustive):

State Notes
California Maritime loans are governed by specific state regulations that may affect interest rates.
Florida Florida has unique maritime laws that can influence loan agreements and repayment terms.
New York New York's maritime laws include provisions for extraordinary interest rates in shipping contracts.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Differences
Nauticum foenus Extraordinary interest on maritime loans. Specific to maritime ventures and contingent on voyage success.
Usura maritima Another term for maritime interest. Essentially synonymous with nautilus foenus.
Nautica pecunia Loans to shipowners repaid upon successful voyages. Focuses on the repayment condition rather than the interest rate.

What to do if this term applies to you

If you find yourself needing a maritime loan or dealing with nautilus foenus, consider the following steps:

  • Review your loan agreement carefully to understand the terms and conditions.
  • Consult with a maritime attorney for guidance specific to your situation.
  • Explore US Legal Forms for templates that can help you draft or manage your maritime contracts.

Quick facts

  • Type: Maritime loan interest
  • Typical interest rates: Higher than standard loans due to risk
  • Applicable to: Shipowners and maritime businesses
  • Repayment: Contingent on successful voyage

Key takeaways

Frequently asked questions

It is a term for extraordinary interest rates applied to maritime loans, especially for hazardous voyages.