What is the term for financial adjustments when multiple claims exceed remaining interest?

The term "prorated" refers to the process of allocating or distributing an amount proportionally among several parties based on their respective shares or claims. In the context of financial adjustments when multiple claims exceed the remaining interest, prorating ensures that each claim is adjusted fairly according to the total amount available. This is particularly important in situations where total claims exceed the resources available, leading to a need for equitable distribution of funds.

By using prorating, each claimant receives a portion of what they are owed that is proportional to their original claim. This method reduces potential disputes by providing a clear and systematic way to handle financial limitations among multiple parties. Therefore, in the scenario presented, prorating is the correct term that accurately describes the financial adjustments made when multiple claims cannot be fully satisfied due to limited remaining interest.