What is an example of a loan on bottomry?

A loan on bottomry is a specific type of maritime financing arrangement in which a shipowner borrows money to fund a voyage or shipment and agrees to repay the loan from the proceeds of the cargo, specifically contingent upon the successful and safe delivery of that cargo. If the ship and cargo are lost during the voyage, the borrower is not required to repay the loan.

Thus, the first choice accurately represents this concept, as it highlights the condition that repayment depends on the safe delivery of the shipment. This aligns precisely with the principles of bottomry, which is primarily used in maritime law to facilitate trade and shipping operations when the shipowner requires funds to cover voyage costs or to protect against risks associated with maritime transport.

In contrast, the other options do not capture the essence of bottomry. For example, the option discussing warehouse lending against future payment pertains more to storage agreements rather than the maritime principle of bottomry. Similarly, financing that entails no repayment conditions or traditional loan arrangements does not incorporate the element of risk associated with maritime loans that is fundamental to bottomry agreements.