Section 13-4-201 - Conditions(a) A bank is insolvent when any of the following conditions exist: (i) When the actual cash market value of its assets is less than its liabilities; (ii) When it fails to make good its reserve as may be required by this act, or the federal reserve board; or (iii) When it fails to pay, in the manner commonly accepted by business practices including draft or cashier's check, its legal obligations to depositors on demand or to discharge any certificates of deposit, promissory notes or other indebtedness when due.