This paper is about Toroidal
Lie algebras which generalize the notion of an Affine Lie algebra. We study Verma
type modules for these Toroidal algebras and prove an irreducibility criterion
when the number of variables is two. We use the fact that the universal
enveloping algebra is an Ore domain to obtain facts about the Verma type
modules. Moreover, we are able to characterize the Affine Kac-Moody Lie
algebras as those whose universal enveloping algebras are non-Noetherian Ore
domains.