Business Glossary

past due payments or other liabilities. An example is cumulative preferred stock dividends that have been declared but have not been paid following their payment dates. (Common dividends cannot be paid as long as cumulative preferred dividends are in arrears.)

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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.

insurance policy under which premiums are past due but the grace period has not expired.

1. at the end of a term.
   Example: Interest on mortgage loans is normally paid in arrears. This means that interest is paid at the end of a month or other period. Generally, rent and insurance are paid in advance.

2. sometimes used to signify default; overdue in payment.
   Example: Jones has not made his scheduled mortgage payments for three months; he is in arrears.