Escrow Disbursement Date Law and 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.