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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

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.

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.

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.

A Law Dictionary, Adapted to the Constitution and Laws of the United States. By John Bouvier. Published 1856.
References in periodicals archive ?
Holiday entitlement is on a pro rata basis. Before you receive enhanced overtime rates of pay you will have to work the same number of hours as a full time worker.
The bank may, at its option, assign the investment on a pro rata basis to different risk categories according to the investment limits in the fund's prospectus, but in no case will indirect holdings through shares in any mutual fund be assigned to a risk weight less than 20 percent.
Because the number of Shares tendered exceeded 7,306 Shares, the tender offer is oversubscribed, so it will purchase Shares from all tendering stockholders on a pro rata basis, disregarding fractions.
The deal is subject to working capital adjustments, plus assumed project debt of approximately USD 145m and tax equity of approximately USD 97m (as of August 1, 2015 on a pro rata basis).
At the time of termination, each ETF's property remaining after paying or providing for the relevant ETF's liabilities and obligations will be distributed on a pro rata basis among the ETF's unitholders based on the final net asset value ("Final NAV") per unit of the ETF that is held by such unitholders.
All of the shares are being sold on a pro rata basis by the selling stockholders in accordance with their current interests, and the Selling Stockholders will receive all of the net proceeds from this offering.
The notes are redeemed on a pro rata basis at a redemption price equal to 101.458 percent of the principal amount redeemed.
However if the employee works less than five days per week the increase will be on a pro rata basis. There is ongoing consultation on the date of introduction of the rest of the leave.
It is not uncommon for an adviser to disclose to clients that its securities purchases or sales for clients will generally be executed in a single block trade at a uniform price and allocated equally among clients participating in the trade on a pro rata basis. Depending on market conditions, however, the adviser may not be in a position to purchase the same security for all clients at the same price.
For workers who work part-time, the annual leave entitled of 20 days is on a pro rata basis according to the number of hours actually worked.
Moreover, while the partnership agreement provided that the parties would share losses on a pro rata basis, internal documentation indicated that ABN had no intention of absorbing any portion of the losses.