Pro Rata | Practical Law

Pro Rata | Practical Law

Pro Rata

Pro Rata

Practical Law Glossary Item 7-382-3713 (Approx. 2 pages)

Glossary

Pro Rata

A term meaning proportionately; apportioned according to a relative amount. For example, if two lenders each hold 50% of the loan, a pro rata distribution of a principal payment received by the borrower would mean that each lender would receive 50% of the principal payment.