An ACCOUINT is said to be "in arrears" if one or more PAYMENTS have been MISSED in transactions where REGULAR payments are CONTRACTUALLY required, such as mortgage or rent payments and utility or telephone bills. The term is usually used in RELATION with PERIODICALLY RECURRING PAYMENTS such as rent, bills, royalties (or other contractual payments), and CHILD support. PAYMENT in ARREARS is a term describing PAYMENTS made after a service has been provided. In this case use of the word "arrears" does not IMPLY any BREACH.
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Arrears Calculation