Pari passu

The Latin phrase pari passu (pronounced IPA: /,pæ rɪ (or 'pɑː rɪ) 'pæ suː/) means ‘with equal or similar step or pace’. The expression may be used when one activity or process progresses or is expected to progress at the same pace as, or in step with, another - as in such sentences as ‘The repairs to the building will proceed pari passu with work on the new approach road’ and ‘The M.P.’s popularity with his constituents declined pari passu with the increasing frequency of his absences from the constituency’.

However, the phrase pari passu is most commonly used nowadays in certain legal and financial contexts, when assets have to be distributed among a number of claimants, e.g., the beneficiaries of a will or the creditors of a bankrupt. In these contexts a pari passu distribution is one in which the distribution proceeds ‘at the same pace’ in relation to all the claimants, i.e., all are on an equal footing and no one’s claim on the relevant assets takes precedence over anyone else’s. For further detail about the way in which pari passu is used in these contexts you are advised to consult a suitable text book.

Note that although the expressions pari passu and pro rata are often found in the same context, they focus on different aspects of the context: pari passu focuses on the nature of the process, on its proceeding ‘at the same pace’ in relation to all the claimants, while pro rata focuses on the result of the process, on each claimant’s share being proportionate to their claim.