Legal Definitions - disbursement

Definition: Disbursement is the act of paying out money from a fund or in settlement of a debt or account payable.

Example: The company made a disbursement of $10,000 to its shareholders as a dividend payment.

Explanation: In this example, the company paid out money from its funds to its shareholders as a dividend payment. This act of paying out money is called disbursement.

Example: The disbursement of the loan amount was made to the borrower's account.

Explanation: In this example, the lender paid out the loan amount to the borrower's account. This act of paying out money is called disbursement.

Example: The disbursement of the settlement amount was made to the plaintiff's attorney.

Explanation: In this example, the defendant paid out the settlement amount to the plaintiff's attorney. This act of paying out money is called disbursement.