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.
DEFINITION of 'Solvency'. The ability of a company to meet its long-term financial obligations. Solvency is essential to staying in business, but a company also needs liquidity to thrive. Liquidity is a company's ability to meet its short-term obligations. A company that is insolvent must enter bankruptcy; a company that lacks liquidity can also be forced to enter bankruptcy even if it is solvent. Next Up.