The New International Encyclopædia/Crédit Foncier

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CRÉDIT FONCIER, krắ'dḗ'N'syắ' (Fr., landed credit). The French name for a method of borrowing money on the security of landed property which is widely practiced in France and other Continental countries. The borrower takes a loan, in return for which he contracts to make certain annual payments, which are so adjusted as to make provision for the interest and for the gradual extinction of the principal, which is fully paid when the term of the contract has been concluded. These contracts are generally made with companies organized for the purpose of loaning their capital in this fashion. Another variety of this form of credit is found in the Pfandbrief institute of the large landowners of Germany. Loans are made in the same way, but in return for the debt the borrower receives the securities of the association. He does not actually contract a debt until he sells these securities, which he may do in whole or in part.