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 ?
For example, high excess spread may prolong pro-rata periods and require more, not less, CE.
The sheer size of the pro-rata loans was expected to make the deal challenging.
Dr Fakhro said that co-ordination meetings would be held soon with LMRA officials to discuss plans to reconsider pro-rata Bahrainisation.
We estimate that some 1.64-1.79 mln shares could be tendered by so-called odd lots and will be purchased not pro-rata.
As mentioned in our 8-K filings, this contingent liability is created based on member banks' pro-rata ownership.
If both die within 20 years of retirement, the pro-rata withdrawal strategy maximizes the net after-tax amount for heirs.
Yes, from October 1, 2007, the statutory minimum paid holiday entitlement will increase to 4.8 weeks (24 days for those working a five-day week) and a pro-rata increase for those working part-time.
Therefore, Catalano is entitled to only a pro-rata interest deduction--in this case, $83,425.
The new rules, which are part of the implementation of an EU directive on part-time work, aim to ensure that employees who do not work full time receive the same benefits and pay pro-rata as those who do.
Fractional bundles, as small as 16.6% of a bundle, will be priced on a pro-rata basis including pro-rata utilities.
Finally, the facts of the second ruling demonstrate that the distribution may be pro-rata or accomplished via a series of redemptions.
If a previously established 401(h) or welfare benefit fund covers other than current retiree health benefits, the liabilities attributable to current retiree health benefits are determined on a pro-rata basis.