Distributed, given out, or dealt out in portions; or officially allowed someone to ignore a rule or requirement.
From Latin 'dispensare' meaning to weigh out or distribute. In medieval times, church authorities literally 'dispensed' with rules by issuing special permissions (called 'dispensations').
When the Pope grants a 'dispensation,' they're technically dispensing with a rule—the terminology comes directly from this medieval administrative practice of officially excusing someone from requirements!
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