pro rata

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Pro Rata

[Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share.

In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. If the debtor has any remaining funds, the money is divided proportionately among the creditors, according to the amount of the individual debts.

A pro rata clause in an automobile insurance policy provides that when an insured person has other insurance policies covering the same type of risk, the company issuing the policy with the pro rata clause will be liable only for a proportion of the loss represented by the ratio between its policy limit and the total limits of all the available insurance.

pro rata

(proh rat-ah or proh ray-tah) adj. from Latin for "in proportion," referring to a share to be received or an amount to be paid based on the fractional share of ownership, responsibility, or time used. Examples: an heir who receives one-quarter of an estate may be responsible for one quarter of the estate taxes as his/her pro rata share. A buyer of a rental property will pay his/her pro rata share of the property taxes for that portion of the year in which he/she holds title.

pro rata

adjective alloted, apportioned, distributed, equivalently, in proportion, on even terms, proportionate
Associated concepts: apportionment, pro rata share

pro rata

adverb each to each, in equal shares, respectively, to each according to his share
See also: per capita

PRO RATA. According to the rate, proportion or allowance. A creditor of an insolvent estate, is to be paid pro rata with creditors of the same class.

References in periodicals archive ?
In fact, pro-rata pay deals can still experience large inflows of prepayments while maintaining the original credit subordination profile.
In the Denver suburb of Westminster, Forest City announced that Foley's department store has joined JC Penney and AMC Theatres as anchors for the $112 million (projected cost at the Company's full and pro-rata share), 900,000-square-foot The Orchard Town Center.
In summary, USR will be selling its non-Mississippi and non-Louisiana properties to Sniper for a pro-rata share of up to 20 million common shares of Sniper.
E[acute accent](e) The Optionee will earn and vest in an additional 5% interest in the Property (resulting in an aggregate 85% interest) when a Bankable Feasibility Report ("BFR") is completed by the joint venture, and subsequently, if the Optionee, as its sole discretion, elects to arrange Becker's pro-rata share of the funding to bring the Property into commercial production, then the Optionee will acquire and vest in an additional 5% interest in the Property, resulting in an aggregate 90% interest.
Shareholders will get a pro-rata dividend, equivalent to a 40% interest in an enhanced Arizona Aircraft Spares' current business, a new company, and retain a 100% share interest in another new company Cell Wireless Corporation, providing software to take advantage of the fast growing cellular subscriber market.
The remaining class A, class B, class C, and class D notes are paid on a pro-rata basis based on targeted enhancement amounts rather than class sizes.
EVERTRUST FINANCIAL GROUP DECLARES DIVIDEND; PRO-RATA DIVIDEND AND CLOSING DATE OF MERGER ALSO SET
The additional funding comes on a pro-rata basis from the company's six current investors: Advanced Technology Partners, Armada Venture Partners, Lucent Venture Partners, Mellon Ventures, Morgenthaler Ventures and Oak Investment Partners.