rate

Proportional or relative value, measure, or degree. The proportion or standard by which quantity or .value is adjusted. Thus, the rate of interest is the proportion or ratio between the principal and interest; the buildings in a town are rated for insurance purposes; i.e., classified and individually estimated with reference to their insurable qualities. In this sense also we speak of articles as being in "first-rate" or "second-rate" condition. Amount of charge or payment with reference to some basis of calculation. A certain quantity or amount of one thing considered in relation to another thing and used as standard or measure. George A. Koteen Associates, Inc. v. Fulton Cotton Mills, Inc., D.C.N.Y., 307 F.Supp. 1396, 1399.

A fixed relation of quantity, amount or degree; also, a charge, valuation, payment or price fixed according to ratio, scale or standard; comparative price or amount of demands. E. C. Miller Cedar Lumber Co. v. United States, Cust. & Pat.App., 86 F.2d 429, 434.

Cost per unit of a commodity or service. In connection with public utilities, a charge to the public for a service open to all and upon the same terms. The unit cost of a service supplied to the public by a utility. When used in connection with public utilities, such as a telephone company, generally means price stated or fixed for some commodity or service of general need or utility supplied to the public measured by specific unit or standard. Bird v. Chesapeake & Potomac Tel. Co., D.C.Mun.App., 185 A.2d 917, 918.

As used in the interstate commerce law, it means the net cost to the shipper of the transportation of his property; that is to say, the net amount the carrier receives from the shipper and retains. Great Northern Ry. Co. v. Armour & Co., D.C.I11., 26 F.Supp. 964, 967.

See also commodity rate

- confiscatory rates

- discount rate

- flat rate

- freight rate

- interest rate

- joint through rate

- meter rate; prime interest rate.

@ class rate

A single rate applying to the transportation of a number of articles of the same general character. Commodity rate. A rate which applies to the transportation of a specific commodity alone.

@ joint rate

A single rate applied jointly by two carriers to cover shipment in which one carrier operates over only part of route and other carrier serves remaining distance to destination. U.S. v. Southern Motor Carriers Rate Conference, Inc., C.A.Ga., 672 F.2d 469, 475

See joint through rate

- rate

@ rate base

The amount of investment on which a regulated public utility is entitled to an opportunity to earn a fair and reasonable return. It represents the total investment in or fair value of the used and useful property which it necessarily devotes to rendering the regulated services. Southern Bell Tel. & Tel. Co. v. Public Service Commission, 270 S.C. 590, 244 S.E.2d 278, 283.

See also rate of return, below

@ rate of exchange

In commercial law, the actual price at which a bill, drawn in one country upon another country, can be bought or obtained in the former country at any given time. Also, the price at which the money of one country may be exchanged for money of another country (e.g. dollars for marks)

@ rate of interest

The charge imposed by a lender of money for the use of the money; the borrowing charge. Discount rate. Rate charged to member banks by Federal Reserve Board for borrowing money from Federal Reserve. Legal rate. The statutory maximum rate of interest which may be charged for loans.

See also usury

@ prime rate

The rate of interest charged for high quality commercial loans (i.e. rate charged by bank to its most credit worthy customers) which is pegged to the discount rate established by the Federal Reserve Board. This rate tends to establish the rate of interest charged for various types of personal and commercial loans

+ prime rate

The most favorable interest rates charged by a commercial bank on short-term loans to its best (i.e. most creditworthy) customers.

@ rate cap

Provision in loan agreement restricting interest rate increases. For example, in an adjustable rate mortgage (ARM), a clause which limits interest rate increases, on either an annual or a lifetime basis

@ rate of return

The annual return on an investment, generally referred to in terms of a percentage of the investment. The percentage by which the rate base is multiplied to provide a figure that allows a utility to collect revenues sufficient to pay operating expenses and attract investment. Providence Gas Co. v. Burman, 119 R.I., 78, 376 A.2d 687, 695.

In the case of common stock, is the annual dividend yield as a percentage of the purchase price.

See also dividend yield

- fair return on investment

- yield

@ rate tariff

Statement by carrier to possible shippers that it will furnish certain services under certain conditions for certain price. Union Wire Rope Corporation v. Atchison T. & S. F. Ry. Co., C.C.A.Mo., 66 F.2d 965, 966.

See tariff

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