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. 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 ?
The Louisiana Supreme Court, therefore, was persuaded by the reasoning presented in Forty-Eight Insulations and its progeny to adopt the pro rata allocation method for defense costs in the case before us based on the policy language.
2 beef Oxo cubes pro rata (84p per pack) ...........................................28p
- The Company has received commitments from a group of PNG domiciled shareholders to take up take up their aggregate full pro rata entitlements under the Rights Issue and also to subscribe for any shortfall up to an aggregate of $500,000.
The second scenario is similar to the first scenario, except that the pro rata distribution is pursuant to a divorce and, upon the death of a payment recipient, the new CRT for such recipient is distributed to the remainder beneficiary (not the surviving payment recipient).
A final consideration: if your holiday year started prior to April 1, 2009, remember to calculate the pro rata for the part of that year where 4.8 weeks apply, and then the 5.6 weeks thereafter.
664(d) as long as the division is pro rata and the separate trusts have the same governing provisions, recipients, remainder beneficiaries, and assets as the original trust, with some exceptions.
The result is that each of the former partners now own an undivided pro rata interest in the real property formerly owned by the partnership.
Old Law: Under the old law, if an S corp donated money or other property to a charity, each shareholder takes into account the shareholder's pro rata share of that donation in determining the shareholder's own income tax liability.
Employees who work five days per week get 20 days per year: employees who do not would get the pro rata equivalent.
This can include bank holidays and is calculated on a pro rata basis depending on the length of your employment.
If the insured is entitled to first monies, is it acceptable to advise the insured of this and propose a pro rata agreement for the sharing of any recovery on the basis of proportionate losses?
"But, if you look behind the flexibility, you'll see they're not paying a pro rata salary or benefits.