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