Solvent definition: Copy, customize, and use instantly
Introduction
The term "Solvent" refers to an individual or entity's financial ability to meet its debt obligations as they come due. It is essential in determining the financial health of a business, as a solvent company has more assets than liabilities and is considered capable of fulfilling its obligations. In legal and financial contexts, being solvent is crucial for entering contracts, securing financing, and maintaining operational stability.
Below are various examples of how "Solvent" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Solvent" as a financial condition
This definition ties "Solvent" to the overall financial health of a company.
"Solvent" refers to the ability of an individual or company to meet its financial obligations when they become due, with assets exceeding liabilities as determined by generally accepted accounting principles.
Definition of "Solvent" as a legal requirement
This definition connects "Solvent" to legal standards for business operations.
"Solvent" means a condition in which a company’s total assets exceed its total liabilities, and the company is capable of paying its debts as they become due, in compliance with applicable legal standards.
Definition of "Solvent" as the ability to pay debts
This definition links "Solvent" to an entity's ability to pay off its obligations.
"Solvent" refers to a state in which an individual or entity has sufficient assets or resources to settle all its outstanding debts and obligations in full as they mature.
Definition of "Solvent" as a business condition
This definition ties "Solvent" to the ongoing viability of a business.
"Solvent" means that the business has enough net worth and liquidity to meet its financial obligations and continue operations without the risk of insolvency or default.
Definition of "Solvent" as an investment requirement
This definition connects "Solvent" to financial criteria for investment.
"Solvent" refers to a financial condition where a company maintains a positive net worth and is capable of paying its liabilities, thus ensuring its viability as a potential investment.
Definition of "Solvent" as an individual’s financial state
This definition applies "Solvent" to an individual’s financial status.
"Solvent" means that an individual has sufficient assets to cover all liabilities and is capable of paying debts when they come due without the risk of default.
Definition of "Solvent" as a condition for creditworthiness
This definition links "Solvent" to a company's ability to obtain credit.
"Solvent" refers to a company’s financial condition where its assets exceed its liabilities, allowing it to access credit facilities or secure loans due to its ability to meet debt obligations.
Definition of "Solvent" as a requirement for bankruptcy protection
This definition connects "Solvent" to eligibility for bankruptcy proceedings.
"Solvent" means a condition where an individual or business is not eligible to file for bankruptcy because they are able to pay their debts as they come due, maintaining financial stability.
Definition of "Solvent" as an assessment of financial health
This definition ties "Solvent" to the evaluation of financial stability.
"Solvent" refers to the assessment that a business or individual has a sufficient ratio of assets to liabilities, ensuring its continued financial health and ability to fulfill obligations.
Definition of "Solvent" as the opposite of insolvency
This definition links "Solvent" to insolvency prevention.
"Solvent" means the financial condition where an entity has more assets than liabilities, in contrast to insolvency, which occurs when liabilities exceed assets and obligations cannot be met.
Definition of "Solvent" as a financial covenant
This definition ties "Solvent" to contractual obligations.
"Solvent" refers to a financial covenant requiring a company to maintain assets that exceed its liabilities by a specific margin, ensuring the company remains capable of meeting its obligations.
Definition of "Solvent" as a corporate condition for distributions
This definition connects "Solvent" to company policies on distributions.
"Solvent" means a condition in which a corporation has sufficient assets to meet its debts, allowing it to legally distribute dividends or make distributions to shareholders or partners.
Definition of "Solvent" as the condition for debt restructuring
This definition ties "Solvent" to financial restructuring efforts.
"Solvent" refers to the financial state of an entity in which it retains the ability to restructure its debts due to a sufficient asset base, allowing for the modification of obligations rather than liquidation.
Definition of "Solvent" as a pre-condition for merger or acquisition
This definition links "Solvent" to business transactions.
"Solvent" means that a company is in a financial condition where it has enough assets to cover all its liabilities, making it eligible for merger or acquisition transactions without posing financial risk.
Definition of "Solvent" as the criteria for eligibility in business contracts
This definition connects "Solvent" to contractual eligibility.
"Solvent" refers to the requirement that an individual or company must meet certain financial criteria, such as having more assets than liabilities, to enter into binding contracts or agreements.
Definition of "Solvent" as a qualification for regulatory compliance
This definition ties "Solvent" to regulatory requirements.
"Solvent" means a condition where a company or individual meets the financial stability requirements set by regulatory bodies, ensuring the ability to comply with financial and legal obligations.
Definition of "Solvent" as the financial stability of a firm
This definition links "Solvent" to long-term business sustainability.
"Solvent" refers to a condition where a company maintains adequate financial resources, ensuring it can fulfill its obligations and sustain operations without the threat of bankruptcy or default.
Definition of "Solvent" as the requirement for business lending
This definition connects "Solvent" to borrowing capacity.
"Solvent" means a condition in which a company is able to access business loans or lines of credit due to its financial stability, characterized by the ability to meet debt obligations when due.
Definition of "Solvent" as a state of financial equilibrium
This definition ties "Solvent" to financial balance.
"Solvent" refers to a state where an individual or entity's assets exceed its liabilities, maintaining financial equilibrium and the ability to meet obligations without risk of insolvency.
Definition of "Solvent" as financial capacity to meet obligations
This definition ties "Solvent" to an individual or entity's ability to meet its financial obligations.
"Solvent" means an individual or entity's ability to meet its debts and obligations as they come due, where its total assets exceed its total liabilities.
Definition of "Solvent" as a condition for debt repayment
This definition connects "Solvent" to an individual or company’s capacity for debt repayment.
"Solvent" refers to the financial condition where an individual or business has enough assets to cover all of its debts and obligations, thus able to repay them as they become due.
Definition of "Solvent" as a measure of business sustainability
This definition links "Solvent" to the long-term viability of a business.
"Solvent" means a condition where a company has sufficient assets to pay off its liabilities and continue operations without needing to liquidate or restructure its debt.
Definition of "Solvent" as an investment prerequisite
This definition ties "Solvent" to a requirement for making investments.
"Solvent" refers to an individual or entity’s financial health, where assets exceed liabilities, making it eligible for investment or securing loans under favorable terms.
Definition of "Solvent" as eligibility for entering business contracts
This definition connects "Solvent" to a qualification for entering contracts.
"Solvent" means an entity's financial state where it can enter into binding contracts because its financial position allows it to meet its contractual obligations.
Definition of "Solvent" as the opposite of insolvency
This definition links "Solvent" to the prevention of insolvency.
"Solvent" refers to a condition where an individual or business has more assets than liabilities, ensuring the ability to pay debts, unlike insolvency where liabilities exceed assets.
Definition of "Solvent" as a financial covenant in agreements
This definition ties "Solvent" to contractual financial requirements.
"Solvent" means a financial covenant under which an entity must maintain a condition where its assets exceed its liabilities to continue meeting its obligations under the agreement.
Definition of "Solvent" as a necessary state for paying dividends
This definition connects "Solvent" to the legal condition for distributing dividends.
"Solvent" refers to a company having sufficient assets and financial resources to meet its debts, thus being legally allowed to pay dividends to its shareholders.
Definition of "Solvent" as the ability to avoid liquidation
This definition links "Solvent" to the ability to continue operations.
"Solvent" means that a company is financially stable, with assets greater than liabilities, thereby avoiding liquidation or bankruptcy proceedings.
Definition of "Solvent" as the condition for merger or acquisition eligibility
This definition ties "Solvent" to a requirement for mergers or acquisitions.
"Solvent" means the financial condition required for a company to be eligible for merger or acquisition transactions, ensuring its liabilities do not exceed its assets.
Definition of "Solvent" as the requirement for loan eligibility
This definition connects "Solvent" to eligibility for securing loans.
"Solvent" refers to the financial state of an entity in which it has the ability to meet its obligations and repay loans, making it eligible to secure additional borrowing.
Definition of "Solvent" as a standard for corporate financing
This definition ties "Solvent" to the financing capacity of a company.
"Solvent" means a company’s condition where it has more assets than liabilities, allowing it to raise capital, obtain financing, or negotiate favorable terms with lenders.
Definition of "Solvent" as the requirement for business operations continuation
This definition links "Solvent" to the ability to continue business activities.
"Solvent" refers to a company being in a state where it can continue operations because its assets exceed liabilities and it can fulfill its obligations.
Definition of "Solvent" as a regulatory condition
This definition connects "Solvent" to regulatory compliance.
"Solvent" means the condition required by regulatory authorities, where an entity must maintain assets that exceed liabilities to comply with applicable laws and regulations.
Definition of "Solvent" as an indicator of financial health
This definition ties "Solvent" to assessing overall financial stability.
"Solvent" refers to the financial condition in which an entity’s assets surpass its liabilities, serving as an indicator of overall financial health and stability.
Definition of "Solvent" as a state required to avoid default
This definition links "Solvent" to the prevention of default.
"Solvent" means the financial ability to avoid default on obligations, where an individual or entity can pay its debts as they come due, without failing to meet financial commitments.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.