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A previously due payment that has not been made. For example, because preferred stock has guaranteed dividends, a company is legally required to pay all dividends on preferred stock before it makes any dividend payments on common stock. If the company does not do so, usually because it has become cash poor, the preferred dividends are said to be in arrearage. This is also called being in arrears.


(1) Being past due on a debt.(2) Paid at the end of the period rather than the beginning. Rent is usually paid in advance,at the beginning of the month for the coming month.Interest is usually paid in arrears,at the beginning of the month for interest accrued during the prior month.Real estate taxes are usually paid in arrears.

References in periodicals archive ?
Pervez Khankhel Swati has strictly directed all field formations to recover all outstanding arrears from Government departments by the given deadline or disconnect them.
Prior to 25 June 2010, payments made by borrowers towards their arrears
Richard Berridge, Managing Director of Just Landlords, has been quoted saying: "Even the best checks and references cannot predict a tenant falling on hard times and not being able to pay their rent, so start by building an open and honest relationship with your tenant at the very beginning and if they go into arrears you can try and work together and if necessary start a payment plan or negotiate an early ending to the tenancy to avoid major losses.
This can be attributable to the difficult economic climate, welfare reform and the time taken to embed the introduction of the new Income Team and the new rent arrears procedures.
Increased flexibilities to landlords offered by the new Affordable Rent Tenancies, changes to the welfare system, reduced budgets and the risk of increasing unemployment mean it is more important than ever that social landlords maximise their income through new efficient methods of arrears management.
As in the case of the first installment of the arrears, government servants would be permitted to deposit their arrears in their GPF (General Provident Fund) accounts," said a Finance Ministry's office memorandum.
While every effort is made to avoid anyone losing their home, if a tenant has persistent arrears and refuses to co-operate we will be forced to take legal action.
But payment arrears for local taxes in fiscal 2006 dropped by 25 percent from fiscal 2002 partly because local governments allowed residents to pay taxes by credit card.
Chairman Alastair MacNish said: 'We are looking for improvements in tackling rent arrears, empty homes and speed of council house sales.
But only 11 countries--Algeria, Ethiopia, Egypt, Libya, Swaziland, Senegal, South Africa, Mauritius, Mozambique, Namibia and Mali have cleared up their arrears.
Questions must be asked about why this or any other organisation is allowed to run up these kind of arrears when the council taxpayer could be picking up the bill.
Conceding that the advance interest payments resulted in "an odd portrayal of Leverage Leasing's taxable income," the court said Congress had allowed it through taking no action to prevent "the payment of interest in arrears before the due date, so long as the interest was allocable to the year in which it accrued.