solvency

solvency
The condition of a person having sufficient assets to meet his obligations as they mature in the ordinary course of business. Ability to pay one's debts, not a mere disposition to pay. Janes v Scott, 59 Pa 178. A word which implies as well the present ability of the debtor to pay out of his estate all his debts, as also such condition of his property as that it may be reached and subjected by process of law, without his consent, to the payment of such debts. 29 Am 1 Rev ed Insolv § 2. Solvency is to be distinguished from the state of a person who possesses the ability to secure further credit and thus incur further indebtedness. The lat- ter state may be one of insolvency. Baily v Hornthal, 154 NY 648 49 NE 56. See actuarial solvency.

Ballentine's law dictionary. . 1998.

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  • solvency — sol·ven·cy / säl vən sē/ n: the quality or state of being solvent Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. solvency …   Law dictionary

  • Solvency — Sol ven*cy (s[o^]l ven*s[y^]), n. [See {Solvent}.] The quality or state of being solvent. [1913 Webster] …   The Collaborative International Dictionary of English

  • solvency — 1727; see SOLVENT (Cf. solvent) + CY (Cf. cy) …   Etymology dictionary

  • solvency — [säl′vən sē, sôl′vən sē] n. a solvent state or quality …   English World dictionary

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  • Solvency — In finance, solvency is the ability of an entity to pay its debts with available cash. Solvency can also be described as the ability of a corporation to meet its long term fixed expenses and to accomplish long term expansion and growth. The… …   Wikipedia

  • Solvency — The ability of a corporation to meet its long term fixed expenses and to accomplish long term expansion and growth. The better a company s solvency, the better it is financially. When a company is insolvent, it means that it can no longer operate …   Investment dictionary

  • solvency — [[t]sɒ̱lv(ə)nsi[/t]] N UNCOUNT: usu with supp A person or organization s solvency is their ability to pay their debts …   English dictionary

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