Definitions (2)

1. An amount of an obligation which is past.
2. For a bond or preferred share, overdue interest or dividends.

Use arrearage in a sentence

The man said it would take 3 more years to pay off the arrearage on his car including the interest.

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It was past due, so I told my friend that it was an arrearage and we might as well forget about it and let it go.

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Preferred stocks can temporarily suspend dividends; however, they must resume paying them before common stock dividends can be paid, including the past due dividend amounts, called an arrearage.

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