- An example of a business with solvency is a business that can pay all its bills.
- An example of something with solvency is water.
Solvency is the state of having more assets than liabilities, or of having the power to dissolve something else.
a solvent state or quality
solvency - Investment & Finance Definition
The ability to pay debts, specifically interest payments on debt, when they are due. Insolvency is the opposite of solvency.
solvency - Legal Definition
The ability to pay one’s debts as they come due or as they mature. Implied is the ownership of property of adequate value to secure those debts, should the need arise. See also insolvency.
- The study reported that such a high risk pool was a "viable option," but would demand additional funding of some form, beyond premiums, in order to ensure the program's solvency.
- As the foreclosure rates on subprime mortgages continued to rise, the solvency of lenders specializing in subprime mortgages began to decline.
- It was not until his report on the financial results of 1888 that Sir Evelyn Baring (afterwards Lord Cromer) was able to inform the British government that the situation was such that it would take a series of untoward events seriously to endanger the stability of Egyptian finance and the solvency of the Egyptian government.
- After this, Fredegond endeavoured to restore imperial finance to a state of solvency, and to set up a more regular form of government in her Neustria, which was less romanized and less wealthy than Burgundy, where Guntram was reigning, and less turbulent than theeastern kingdom, where most of the great warlike chiefs with their large landed estates were somewhat impatient of royal authority.