What is Liquidate?

Legal Definition
To adjust or settle an indebtedness; to determine an amount to be paid; to clear up an account and ascertain the balance; to fix the amount required to satisfy a judgment. Midgett v. Watson, 29 N. C. 145 ; Martin v. Kirk, 2 Humph. (Tenn.) 531. To clear away; to lessen; in pay. "To liquidate a balance means to pay it" Fleck-ner v. Bank of U. S., 8 Wheat. 338, 362, 5 L. Ed. 631.
-- Black's Law Dictionary
Legal Definition
To pay. See. 49 Neb. 412, 59 Am. St. Rep. 543, 35 L. R. A. 444, 68 N. W. 628. To ascertain the balance due on an account, to whom due and to whom payable. See 29 N. C. 143.
-- Ballentine's Law Dictionary