What is FONDS PERDUS?

In French law. A capital is said to be invested d fonds perduswhen it is stipulated that in consideration of the payment of an amount as interest,higher than the normal rate, the lender shall be repaid his capital in this manner. Theborrower, after having paid the interest during the period determined, is free as regardsthe capital itself. Arg. Fr. Merc. Law, 560.

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