- To pay a debt. Flecker v Bank of United States (US) 8 Wheat 338, 5 L Ed 631; Austin v Tecumseh Nat. Bank, 49 Neb 412, 68 NW 628. To obtain by agreement or by action the ascertainment of the amount of a debt. To settle the affairs of a business by selling assets, making collections of accounts receivable, applying the proceeds thus obtained to the payment of the debts of the business, and, if there be a surplus after such debts are paid, dividing it among the owners of the business.
Ballentine's law dictionary. Anderson, W.S.. 1998.