Disbursement Law and Legal Definition

A disbursement is a payment made on behalf of another person for which reimbursement in the future is expected. In a law suit, disbursements may be made by a lawyer on behalf of a client for expenses such as filing fees, expert medical reports, private investigator reports, photocopying and courier costs and the like. An executor, guardian, trustee, or other accountant, is said to have made disbursements when paying expenses of an estate which he holds. When properly made, such disbursements are reimbursed in the settlement of the accounts. Disbursements may also be made by government officials.

The following is an example of a state statute authorizing disbursements by the State Treasurer:

"Out of the rental payments provided to be made in the lease authorized in Section 2-6-27, the State Treasurer is authorized and directed to pay the principal of and interest on the bonds and the coupons as the said principal and interest shall respectively mature and to set up and maintain any reserve therefor provided for in the proceedings under which the bonds of the corporation are authorized to be issued."