; 1087dd(g)(1)). (i) Definitions In this section: (1) Liquidity level The term liquidity level means, with respect to an eligible institution, the number of days such eligible institution can operate based on available resources, as determined in accordance with the Financial Accounting Standards Board update entitled No. 2016–14 Not-for-Profit Entities (Topic 958) and dated August, 2016. (2) Teach-out agreement The term teach-out agreement means a written agreement between an eligible institution and one or more teach-out institutions that is in accordance with the requirements in section 496(c)(6) of the Higher Education Act of 1965 ( 20 U.S.C. 1099b(c)(6) ) and that provides for the equitable treatment of students and a reasonable opportunity for students to complete their program of study if such eligible institution, or an institutional location that provides 100 percent of at least one program offered by such eligible institution, ceases to operate or plans to cease operations before all such enrolled students have completed their program of study. (3) Teach-out institution The term teach-out institution means an institution of higher education that— (A) is not subject to a COVID–19 provisional program participation agreement under this section; (B) shows no evidence of significant problems (including financial responsibility or administrative capability) that affect, as determined by the Secretary, the institution’s ability to administer a program under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq.); (C) is not required to pay any material debt, as determined by the Secretary, or incur any material liability, as determined by the Secretary, arising from a judgment in a judicial proceeding, an administrative proceeding or determination, or settlement; (D) is not involved in a lawsuit by a Federal or State authority for financial relief on claims related to the making of loans under part D of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087a et seq.)