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 ?
There are occasions, he said, where Home Savings will make loans over its 35 percent pro rata figure.
Yet, few would disagree the pro rata allocation approach is inappropriate for the transactions addressed by the EITF consensus and that the relative fair value cost allocation approach generates a preferable accounting result.
These two pro rata dividends replace Dow's usual quarterly dividend.
Verizon Communications will pay a pro rata dividend of $.
They claimed Keogh retirement plan deductions of over $9,000 in each of those years, which was 15% of their combined Schedule C income plus their pro rata share of the S corporations' income.
The distribution is the pro rata equivalent of an annual distribution of $1.
1377(a), each item of income or loss is deemed to occur pro rata throughout the S corporation's tax year.
68 in cash, and an amount in cash equal to an adjusted pro rata dividend in addition to the special dividend referred to above.
This money is being distributed pro rata to all claimants who resolved their claims with the Trust for more than $725.
The regulations also provide a revised treatment for pro rata prepayments and clarify the rules on determination of yield and maturity of a debt instrument with one or more stated contingencies.
Instead, for federal income tax purposes, stockholders of AmeriVest on the Record Date will be deemed to own a pro rata share of the assets transferred by AmeriVest to the Trust.
The previous plan that was filed on April 9, 1996 provided that each holder of a prepetition general unsecured claim (including environmental claims) would receive its pro rata share of the cash, notes, and stock to be distributed under the plan to all such claimants and to a trust to be established to satisfy all present and future asbestos and lead-related personal injury claims against the Company.