pro rata

(redirected from pro-rata)
Also found in: Dictionary, Thesaurus, Medical, Financial, Wikipedia.

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 ?
The sheer size of the pro-rata loans was expected to make the deal challenging.
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](d) In the event that the Optionee making the final (additional) cash payment to Becker of $120,000, then it will acquire an additional 5% interest (resulting in an aggregate 80% interest), at which time a joint venture will be formed, whereby each of the Optionee and Becker will be responsible for the exploration and production costs in respect of the development of the Property on a pro-rata basis (the Optionee as to 80% and Becker as to 20%).
Principal is distributed on a modified pro-rata basis, with the class A-1 notes receiving all principal collections until paid in full.
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.