The citation is from the Cisco Press ROUTE Official Cert Guide.
The mechanics of the distribute-list router subcommand has a few surprises, which are
summarized in this list:
- The command requires either an in or out direction. Only the in direction works for filtering routes as described in this section.
- The command must refer to either a numbered ACL, named ACL, prefix list, or route map. Regardless, routes matched with a permit action are allowed into the routing table, and routes matched with a deny action are filtered.
- Optionally, the command can include the interface interface-name-and-number parameters. The router compares these parameters to the route’s outgoing interface.