Community sorting out payment (10)

I believe the answer is:

settlement

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'community' is the definition.
(I know that community can be written as settlement)

I don't understand how the rest of the clue works.

Can you help me to learn more?

(Other definitions for settlement that I've seen before include "charge paid off with this" , "Reservation" , "Outpost; agreement" , "Working out" , "Small outpost of families" .)

I've seen this clue in The Telegraph.

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