### Question
Can you define what obligatory disbursement agreement means?


### Answer
**Obligatory disbursement agreement** is defined as the following in *26 U.S.C. § 6323*:

> an agreement (entered into by a person in the course of his trade or business) to make disbursements, but such an agreement shall be treated as coming within the term only to the extent of disbursements which are required to be made by reason of the intervention of the rights of a person other than the taxpayer

#### Citation:
  - *26 U.S.C. § 6323*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 64-COLLECTION > Subchapter C-Lien for Taxes > PART II-LIENS**

