AVERAGE BOND

A B C D E F G H I J L M N O P Q R S T U V W Y Z
AVERAGE BOND — A document signed by the cargo owner or consignee and given to the carrier (usually the ship's master) guaranteeing the payment of their proportionate share of general average expenses as determined by an average adjuster. Upon signing, the cargo owner is bound by the adjuster's decision and assumes full responsibility for their share of the loss. The carrier has a lien on the cargo and may withhold delivery until the bond is signed and a deposit or guarantee is provided.