Donald Trump has posted a $175 million bond in his New York civil fraud case, temporarily halting the collection of the $454 million debt he owes and preventing the state from seizing his assets while he appeals the judgment. This move follows a court decision to reduce the amount required for the bond to stop enforcement.
The bond Trump is posting serves as security and guarantee for payment if the court upholds the judgment against him. If he wins the appeal, he will not have to pay anything to the state and will receive back the bond money.
Previously, New York Attorney General Letitia James was prepared to initiate collection efforts against Trump's assets to satisfy the debt. However, the required bond amount was lowered by the appeals court after Trump's lawyers argued that finding an underwriter for the original amount was impractical.
The bond is underwritten by Knight Specialty Insurance, part of the Knight Insurance Group, with both cash and bond used as collateral. Trump is challenging a court ruling that found he misrepresented his wealth to obtain loans and deals, and the appeals court is set to hear arguments in September.
Trump's legal debts have impacted his cash reserves, as seen from his recent payments in other legal cases, including covering legal fees for unsuccessful lawsuits and paying damages in cases related to allegations of sexual assault and defamation. While Trump's stake in his new social media company could potentially generate cash in the future, a "lock-up" provision currently prevents insiders from selling shares for six months.
0 Comments