
[Middle English arrers, from arrere, behind, from Old French arere, from Vulgar Latin *ad retrō, backward : Latin ad, to; see ad- + Latin retrō, behind.]
1. Debt, installation loan payment, or bond interest due but unpaid. Loans unpaid after an allowed Grace Period are considered delinquent. The term also applies to unpaid preferred stock dividends.
2. Mortgage or installment loan interest payable at specific dates for the use of borrowed money in the previous period.
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noun
A sum of money that has not been paid or has only been paid in part at the time it is due.
A person who is "in arrears" is behind in payments due and thus has outstanding debts or liabilities. For example, a tenant who has not paid rent on the day it is due is in arrears.
Arrears may also refer to the late distribution of the dividends of cumulative preferred stock.
Overdue debt, liability or obligation. An account is said to be "in arrears" if one or more payments have been missed in transactions where regular payments are contractually required, such as mortgage or rent payments and utility or telephone bills.
Investopedia Says:
The term "in arrears" does not necessarily have a negative connotation in certain contexts such as fixed-income instruments, where it may indicate that interest payments are simply made at the end of a period. For example, mortgage interest in the U.S. is paid in arrears, which means that in the case of monthly payments, each payment covers principal repayment and mortgage interest for the month preceding the payment due date.
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Arrears (also sometimes known as rearage) is a legal term for the part of a debt that is overdue after missing one or more required payments. The amount of the arrears is the amount accrued from the date on which the first missed payment was due. The term is usually used in relation with periodically recurring payments such as rent, bills, royalties (or other contractual payments), and child support.
Payment in arrears is a term describing payments made after a service has been provided. In this case use of the word "arrears" does not imply any breach.
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The term in arrears is also used in many contexts to refer to payments made at the end of a period, as distinct from in advance, which are payments made at the start of a period.[1] For instance, rent is usually paid in advance, but mortgages in arrears (the interest for the period is due at the end of the period). Employees' salaries are usually paid in arrears.
In other contexts, payment at the end of a period is referred to by the singular arrear, to distinguish from past due payments. For example, a housing tenant who is obliged to pay rent at the end of each month, is said to pay rent in arrear, while a tenant who has not paid rental due for 90 days is said to be three months in arrears. Precise usage may differ slightly (e.g. "in arrear" or "in arrears" for the same situation) in different English-speaking countries.
When any shareholder does not pay its call money to company on its due date. At that time, company will deduct that calls in arrears from total called up capital for showing net paid up capital in balance sheet. [2]
In accounting, arrears is used in at least three destinations. One use involves the past, omitted dividends on cumulative preferred stock. If a corporation fails to declare the preferred dividend, those dividends are said to be in arrears. The dividends in arrears must be disclosed in the notes (footnotes) to the financial statements. (Cumulative preferred stock requires that any past, omitted dividends must be paid to the preferred stockholders before the common stockholders will be paid any dividend.)
This is the "past due" sense.
Another use of the word arrears occurs with annuities (an annuity is a series of equal amounts occurring at equal time intervals, such as £1,000 per month for 20 years). If the recurring amount comes at the end of each period, the annuity is described as an annuity in arrears or as an ordinary annuity. A loan repayment schedule is usually an annuity in arrears. For example, you borrow £10,000 on September 30 and your first monthly payment will be due on October 31, the second payment will be due on November 30, and so on.
This is the "end of period" sense.
A LIBOR-in-arrears swap is an interest rate swap that sets and pays interest in arrears. In a normal swap, the interest rate is set in advance, and paid in arrears. In a LIBOR-in-arrears swap, the interest rate is determined at the time of payment, which is in arrears; the amount to be paid is not known in advance.
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Dansk (Danish)
n. pl. - restance
idioms:
Nederlands (Dutch)
achterstand, achterstallige schuld
Français (French)
n. pl. - arriérés, arrérages
idioms:
Deutsch (German)
n. pl. - Schulden, Rückstand
idioms:
Ελληνική (Greek)
n. pl. - καθυστερούμενα
idioms:
Italiano (Italian)
retroguardia, arretrati
idioms:
Português (Portuguese)
n. pl. - dívidas (f pl), obrigações (f pl), trabalho (m) inacabado
idioms:
idioms:
Español (Spanish)
n. pl. - atrasos
idioms:
Svenska (Swedish)
n. pl. - resterande skulder, rest
中文(简体)(Chinese (Simplified))
迟延, 拖延, 耽搁, 欠款, 待完成的事
idioms:
中文(繁體)(Chinese (Traditional))
n. pl. - 遲延, 拖延, 耽擱, 欠款, 待完成的事
idioms:
한국어 (Korean)
n. pl. - 지연, 연체금, 꽁무니
idioms:
日本語 (Japanese)
n. - 滞納金, 滞り, 遅れ, 未払い金
idioms:
العربيه (Arabic)
(الجمع) متأخرات, اعمال غير منجزه
עברית (Hebrew)
n. pl. - פיגורים
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