Corporation Solvency Affidavit
Understanding this form
The Corporation Solvency Affidavit is a legal document in which a corporate officer certifies that the corporation's assets exceed its liabilities on a going concern basis. This affidavit serves to confirm the financial health of the corporation, distinguishing it from other financial affirmations by reinforcing the company's ability to meet its obligations as they become due.
Key components of this form
- Title of Officer: The individual swearing the affidavit must be identified.
- Name of Corporation: The legal name of the corporation must be provided.
- Principal Place of Business: The address where the corporation's primary operations are conducted.
- Financial Certification: A declaration that the corporation's assets exceed its liabilities.
- Contingent Liabilities Declaration: A statement assuring no undisclosed debts beyond ability to pay.
- Notary Acknowledgment: Confirmation of the officer's signature by a notary public.
Common use cases
This form is typically used when a corporation needs to affirm its solvency for various business transactions, such as securing loans, selling assets, or when required by investors. It is a critical step in ensuring trust and transparency in financial dealings, particularly in situations where the financial stability of the corporation is under scrutiny.
Who should use this form
- Corporate officers responsible for financial declarations.
- Corporations seeking loans or investments that require proof of solvency.
- Companies involved in significant asset sales or acquisitions needing to certify their financial standing.
Steps to complete this form
- Identify the officer completing the affidavit by entering their title and name.
- Provide the legal name of the corporation and its principal place of business.
- Certify that the corporation's assets exceed its liabilities and confirm the absence of unmanageable contingent liabilities.
- Sign and date the affidavit in the capacity of the officer.
- Obtain notarization to ensure the document's legal validity.
Notarization requirements for this form
This document requires notarization to meet legal standards. US Legal Forms provides secure online notarization powered by Notarize, allowing you to complete the process through a verified video call, available 24/7.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Mistakes to watch out for
- Failing to provide accurate asset and liability figures.
- Not having the affidavit notarized, if required.
- Incomplete or incorrect information about the officer or corporation.
Benefits of completing this form online
- Convenience of accessing and completing the form from anywhere.
- Editability allows for customization and accuracy.
- Reliability of using legally vetted templates drafted by licensed attorneys.
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FAQ
The Financial Affidavit, form JD-FM-6-SHORT, which is signed under oath, will ask you to provide the Court with information about your income, expenses, debts and assets. The Court will then use the information when deciding fair orders in alimony and child support.
Affidavit of Income and Expenses - YouTube YouTube Start of suggested clip End of suggested clip It is okay to leave these lines blank. Write your name next to affidavit. Of next write your date ofMoreIt is okay to leave these lines blank. Write your name next to affidavit. Of next write your date of marriage. And the date you separated from your spouse.
Example: I, Jane Smith, swear that the information in my sworn statement is truthful to the best of my knowledge and understanding. Your statement of truth must be in the first person and you need to identify yourself in it. Keep it short and sweet.
Affidavit of Solvency: A sworn statement, which indicates that the transfer of assets an individual or entity is about to make will not render that individual or entity bankrupt or insolvent.
Proof of Solvency is the result of both the Proof of Reserves and the Proof of Liabilities, with reliable mechanisms to validate that the total amount of assets held in custody is larger than the total amount of liabilities.
Solvency definition Solvency refers to a company's ability to cover its financial obligations. But it's not simply about a company being able to pay off the debts it has now. Financial solvency also implies long-term financial stability.