Act of insolvency

Insolvency \In*sol"ven*cy\, n.; pl. {Insolvencies}. (Law)
      (a) The condition of being insolvent; the state or
          condition of a person who is insolvent; the condition
          of one who is unable to pay his debts as they fall
          due, or in the usual course of trade and business; as,
          a merchant's insolvency.
      (b) Insufficiency to discharge all debts of the owner; as,
          the insolvency of an estate.
          [1913 Webster]

   {Act of insolvency}. See {Insolvent law} under {Insolvent},
      a.
      [1913 Webster]
    

Insolvent \In*sol"vent\, a. [Pref. in- not + solvent: cf. OF.
   insolvent.] (Law)
      (a) Not solvent; not having sufficient estate to pay one's
          debts; unable to pay one's debts as they fall due, in
          the ordinary course of trade and business; as, in
          insolvent debtor.
      (b) Not sufficient to pay all the debts of the owner; as,
          an insolvent estate.
      (c) Relating to persons unable to pay their debts.
          [1913 Webster]

   {Insolvent law}, or {Act of insolvency}, a law affording
      relief, -- subject to various modifications in different
      States, -- to insolvent debtors, upon their delivering up
      their property for the benefit of their creditors;
      bankruptcy law. See {Bankrupt law}, under {Bankrupt}, a.
      [1913 Webster]