In French law. A capital is said to be invested d fond* perdus when it is stipulated that in consideration of the payment of an amount as interest, higher than the normal rate, the lender shall be re-paid his capital in this manner. The borrow-er, after having pald the Interest during the period determined, is free as regards the cap-ital itself. Arg. Fr. Merc. Law, 560
Source: Black’s Law Dictionary 2nd Ed (1910)
