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lender says to the borrower, "I lend you 100 dollars in consideration of 6 dollars premium (basi) after 3 months"; or still better to maintain the appearance of a sharing of the premium he says, "the basi will in three months amount to 12 dollars, half of which will be your share and the other half mine".
In loans with a covenant for interest the moneylender generally requires a pledge in addition. The object of the pledge or mortgage in such cases is not so much to draw a profit for this short period from the object pledged, as to have security for the repayment of the capital with interest. The moneylenders are thus content with a pledge equal in value to capital plus interest, and so do not require one of double the value of the sum lent, as in ordinary mortgages.
