Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion Lower Tier Covered Transactions â¬ This certification is required by the regulations implementing Executive Order 12549, Debarment and Suspension, 13 CFR Part 145. The regulations were published as Part VII of the May 26, 1988 Federal Register (pages 19160-19211).
Legal Definition of insolvent. 1  1 : having ceased paying or unable to pay debts as they fall due in the usual course of business â compare bankrupt. 2  2 : having liabilities in excess of a reasonable market value of assets held. 3  3 : insufficient to pay all debts an insolvent estate.
The term default should be distinguished from the terms insolvency and bankruptcy.  1 Default essentially means a debtor has not paid a debt which he or she is required to have paid.  2 Insolvency is a legal term meaning that a debtor is unable to pay his or her debts. Illiquidity describes the fact that the debtor has only insufficient cash to pay his or her debts. Bankruptcy is a legal finding that imposes court supervision over the financial affairs of those who are insolvent or in default.