RATA (RAY-tuh)
Pro
rata: In proportion, according to a factor that can be calculated
exactly
Common clue: Pro ____; Pro follower; Pro ____ (one way
to divide things); Pro ____ (proportionally)
Crossword
puzzle frequency:
4 times a year
Frequency
in English language:
62994 / 86800
Video: What
is the pro rata rule
Pro rata: Examples in law and economics include the following noted below.
Torts
When liability for a toxic tort or products liability concerns many manufacturers, the liability under tort law is allocated proportionally.
When
a college student withdraws, colleges almost always refund tuition
payments on a pro-rata basis.
Partnership liability
Each of several partners "is liable for his own share or proportion only, they are said to be bound pro rata. An example ... may be found in the liabilty of partners; each is liable ... only pro rata in relation to between themselves."
Bankruptcy law
When a debtor files for bankruptcy, and "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 creditor of an insolvent estate is to be paid pro rata with creditors of the same class."
In the U.S. Bankruptcy Court practice, the creditors often agree to settle for a pro-rata share at the so-called 341 meeting of creditors, named for the section of the Bankruptcy Code, without a formal hearing before a judge, and sometimes without even a trustee present.
Insurance
In insurance, pro rata is used to determine risk based on the time the insurance policy is in effect. It may also be used to describe proportional liability when more than one person is responsible for a loss or accident.
This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Pro-rata".
|
|
