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.

Act of insolvency. See Insolvent law under Insolvent, a.

Source: Webster's Revised Unabridged Dictionary (1913)