Solvency

The state of a person who is able to pay all his debts; the opposite of "insolvency" (g. v.) Imports adequate means of a person to pay his debts, which embraces within its meaning the opportunity by reasonable diligence to convert and apply to such purpose. In other words, a person is deemed insolvent who at the time in question is unable to pay his debts in the ordinary course of business. It means that the debtor is in such a condition that the demand may be collected out of his property by due course of law. Ability to raise money on credit for the payment of debts does not cotastitute solvency. 13 Wend. (N. Y.) 375, 377; 4 Hill (N. Y.) 650. SOLVENDO (Lat paying). An apt word of reserving a rent in old conveyances." Co. Litt 47a.

Ability to pay; present ability to pay; ability to pay one's debts out of one's present means.

^ Ability to pay one's own debts — in the ordinary course of business; also, ability to pay at some future time, upon settlement of one's estate. Solvent. Owning property enough to pay all one's own debts. " Solvency " may mean being in such condition with respect to property that a demand may be collected 1 [Pearson v. Howey, 11 N. J. L. 19 (1889). = L. sollicitare, to agitate, arouse, urge. 3 Eegina v. Most, 44 L. T. 827 (1881). «4B1. Com. 16. 6 [3 Bl. Com. 26.. « 3 BI. Com. 18, 16. ' Redman v. Forman, 83 Ky. 216 (1885). by due course of law; as, within the law of suretyship, a solvent principal.^ The solvency which will sustain a voluntary deed consists in such condition as to means that payment can be enforced by process of law.'' Does not depend upon the amount of property owned which is subject to execution: the debtor may be solventiand yet have no property liable thereto. '^ "Debts due from solvent debtors," which are taxable under a statute, refer not to general solvency, but to the amount- which may be realized, that is, to the valuS of the debts.* In Missouri, a bank is solvent which has assets sufficient to pay, within reasonable time, all its liabilities, through its own agencies.'^ See further Insolvency.

The pecuniary condition of a person who has means and resources adequate for the payment of his debts. Solvent: possessed of property enough for payment of one's debtors. These terms are satisfied, according to the more recent New York decisions, if the assets of the person mentioned are enough to cover his debts, so that any valid demand against him can be collected by due course of law. They do not require that he should at all times have money on hand for payment of every demand on presentation, according to the usual course of business; nor even that his pecuniary condition should be such as to enable him to raise money promptly, on credit for payment of debts. A person is solvent who owns property enough and so situated that all his debts can be collected from it by legal proceedings. Hufiman o. Hulbert, 13 Wend. 377; Herrick v. Borst, 4 Hill (N. y.), 650; People v. Halsey, 53 Barb. 547. That solvent means, able to pay one's debts in full out of one's own present means, see i Hill {N. F.), 652. It is true that " insolvency " and " inability to pay " are synonymous; but solvency does not mean ability to pay at all times, under all circumstances, and everywhere, on demand, nor does it require that a person should have In his possession the amount of money necessary to pay all claims against him. Walkenshaw v. Perzel, 4 Robt. 426. Solvit ad diem. He paid at the day, i.e. punctually. Solvit post diemi. He paid after the day. The Latin names of two pleas formerly in use, by which defendant in an action of debt averred that he had paid the money now demanded, on the day when it fell due; or, what was much the same thing in effect, that he had paid it after the day named in the deed, but before suit brought.