FindLaw Legal Dictionary
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1 : to agree for a consideration not to prosecute (an offense) NOTE: Compounding a felony is a common-law crime.
2 : to pay (interest) on both the accrued interest and the principal
Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.