Escrow Disbursement Date Law & Legal Definition

Escrow disbursement date means the date on which the servicer actually pays an escrow item from the escrow account. However, the lender must pay the items in a timely manner, that is, on or before the deadline to avoid a penalty. Borrowers are required to review their annual escrow statement to make certain the lender did not make late payments and charge any penalties to the borrower's account.