Settlement Date

1. The date by which an executed security trade must be settled. That is, the date by which a buyer must pay for the securities delivered by the seller.

2. The payment date of benefits from a life insurance policy.

Investopedia Says:
The settlement date for stocks and bonds is usually three business days after the trade was executed. For government securities and options, the settlement date is usually the next business day.

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1. Banking. The date that funds transferred through the Federal Reserve Fed Wire, or private network are deposited in a customer's account and available for use. Fed Wire and Clearing House Interbank Payments System (Chips) transfers are settled the same day. Automated clearing house transfers are settled the next day. See also Finality of Payment.

2. Securities. The date that securities sold actually change hands. Under regular way settlement, transfer of ownership occurs five business days after the transaction. Under seller's option settlement, delivery of securities in completion of a trade can be delayed up to 60 days from the trade execution date.

Same as Closing Date.