• A letter of undertaking is often issued by the shipowner’s liability insurer. [Cases: Admiralty 57. C.J.S. Admiralty §§ 162–168.]
letter of undertaking
An agreement by which a shipowner — to avoid having creditors seize the ship and release it on bond — agrees to post security on the ship, and to enter an appearance, acknowledge ownership, and pay any final decree entered against the vessel whether it is lost or not.