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American Heritage Dictionary:
pro ra·ta |
[Latin prō ratā (parte), according to the calculated (share) : prō, according to + ratā, feminine ablative of ratus, calculated.]
pro-rata pro-ra'ta (prō-rā'tə, -rä'-, -răt'ə) adj.|
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Barron's Real Estate Dictionary:
pro rata |
| Private Sector, Private Offering | |
| Pro-Forma Statement, Pro-Ject |
Barron's Accounting Dictionary:
pro rata |
| Pro Forma Statement of Cash Flows, Pro Forma, Prizesandawards | |
| Probability, Probability Distribution, Procedural Audit |
West's Encyclopedia of American Law:
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.
Investopedia Financial Dictionary:
Pro-Rata |
Used to describe a proportionate allocation. A method of assigning an amount to a fraction, according to its share of the whole.
Investopedia Says:
For example, a pro-rata dividend means that every shareholder gets an equal proportion for each share he or she owns. Pro-rating also refers to the practice of applying interest rates to different time frames. If the interest rate was 12% per annum, you could pro-rate this number to be 1% a month (12%/12 months).
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Random House Word Menu:
categories related to 'pro rata' |
Wikipedia on Answers.com:
Pro rata |
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Look up pro rata in Wiktionary, the free dictionary. |
Pro rata is an adverb or adjective, meaning in proportion.[1] The term is used in many legal and economic contexts. It is sometimes spelled pro-rata, but this is technically a misspelling of the Latin phrase. In North American English this term has been vernacularized to prorated.
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More specifically, pro rata means:
Pro rata has a Latin etymology, from pro, according to, for, or by, and rata, feminine ablative of calculated (rate or change).[6]
Examples in law and economics include the following noted below.
When liability for a toxic tort or a defective product concerns many manufacturers, the liability under tort law is allocated pro rata.[7]
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 liability of partners; each is liable ... only pro rata in relation to between themselves."[8]
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." [9] "A creditor of an insolvent estate is to be paid pro rata with creditors of the same class."[10]
A worker's part-time work, overtime pay, and vacation time are typically calculated on pro rata basis.[11][12][13]
Under US Federal regulations, a government worker has the right, that, "When an employee's service is interrupted by a non-leave earning period, leave is earned on a pro rata basis for each fractional pay period that occurs within the continuity of employment."[14]
The American Federation of Teachers (AFT), a US labor union, argues that all part-time or adjunct instructors should get pro-rata pay for teaching college courses.[15] This is an important issue, as of 2010, for part-time faculty.[16]
Irish secondary school teachers are entitled to pro-rata pay for part-time work.[17]
Under British employment law, "Regulations state that, where appropriate, the pro rata principle should be applied to any comparison ... to be given ... holiday."[18]
Likewise, in Tasmania, Australia, the law clearly grants workers the privilege of part-time benefits for leave of absence.[19][20] This is granted under the Long Service Leave Act 1976.[21]
In corporate practice, "a pro-rata dividend means that every shareholder gets an equal proportion for each share he or she owns." [5]
In banking, "Pro-rating also refers to the practice of applying interest rates to different time frames. If the interest rate was 12% per annum, you could pro-rate this number to be 1% a month (12%/12 months)." [5]
In insurance, pro rata is used to determine risk based on the time the insurance policy is in effect.[22] It may also be used to describe proportional liability when more than one person is responsible for a loss or accident.[9]
Calculation of return premium of a cancelled insurance policy is often done using a cancellation method called pro rata. First a return premium factor is calculated by taking the number of days remaining in the policy period divided by the number of total days of the policy. This factor is then multiplied by the policy premium to arrive at the return premium. Traditionally this has been done manually using a paper wheel calculator. Today it is normally done using an online wheel calculator.[23]
When a college student withdraws, colleges may refund tuition payments on a pro rata basis.
Reading a monthly bill for service that would be prorated.
Determine the daily amount of a monthly charge being prorated by dividing it by the number of days in the cycle(30 is normally used by most systems by default). The resulting number is the daily amount. Example: Based on a 30 day bill cycle and a monthly recurring charge of $30, the daily amount is $1.00 ($30/30 days = $1.00). Determine the number of prorated days. The monthly service charges begin the day service is activated. Example: Service starting on the 20th day of a cycle means there are 10 prorated days. Multiply the daily amount by the number of days being prorated. This gives you the total prorated amount. Example: $1.00 x 10 days = $10.
This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer)
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 | American Heritage Dictionary. The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2007, 2000 by Houghton Mifflin Company. Updated in 2009. Published by Houghton Mifflin Company. All rights reserved. Read more |
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| Barron's Real Estate Dictionary. Dictionary of Real Estate Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved. Read more |
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| Barron's Accounting Dictionary. Dictionary of Accounting Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved. Read more |
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| West's Encyclopedia of American Law. West's Encyclopedia of American Law. Copyright © 1998 by The Gale Group, Inc. All rights reserved. Read more |
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| Investopedia Financial Dictionary. Copyright ©2010, Investopedia.com - Owned and Operated by Investopedia US, A Division of ValueClick, Inc. All rights reserved. Read more |
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| Latin Phrase. © 1999-present by Answers Corporation. All rights reserved. Read more |
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| Random House Word Menu. © 2010 Write Brothers Inc. Word Menu is a registered trademark of the Estate of Stephen Glazier. Write Brothers Inc. All rights reserved. Read more |
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| Wikipedia on Answers.com. This article is licensed under the Creative Commons Attribution/Share-Alike License. It uses material from the Wikipedia article Pro rata. Read more |
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