Former President Donald Trump has posted a $175 million bond in his New York civil fraud case, temporarily halting the collection of the more than $454 million he owes. The bond, filed in response to a court order, prevents the state from seizing his assets while he appeals the judgment.
The New York appellate court had given Trump 10 days to put up the money after agreeing to lower the amount needed to stop enforcement. This bond serves as a placeholder, guaranteeing payment if the judgment is upheld. However, if Trump wins the appeal, he will not owe the state anything and will receive back the posted money.
The case, brought by New York Attorney General Letitia James, accuses Trump of lying about his wealth to bolster his real estate empire. The trial focused on how Trump’s assets were valued on financial statements submitted to lenders and insurers.
Trump’s legal team argued that obtaining an underwriter to sign off on a bond for the full amount owed was practically impossible. Most bonding companies required collateral covering 120% of the debt, which Trump’s lawyers claimed was unattainable.
Despite Trump’s claims of having substantial assets, recent legal debts have depleted his cash reserves. In addition to the $175 million bond in the New York case, Trump has posted over $97 million to cover other legal liabilities, including allegations of sexual assault and defamation.
Trump could potentially generate cash by selling some of his stock in his newly public social media company, Trump Media & Technology Group. However, a lock-up provision prevents insiders from selling shares for six months.
The Appellate Division of the state courts has scheduled arguments for September, potentially coinciding with the final weeks of the presidential race. Filing an appeal typically does not halt enforcement of a judgment, but obtaining a bond guarantees a stay.
If Trump’s appeal is successful, he will avoid paying the state and recoup the posted bond amount. However, if the judgment is upheld, Trump will be required to pay the full sum, which accrues daily interest.
This latest development underscores the ongoing legal challenges facing Trump, who continues to deny any wrongdoing. Despite his assertions, the outcome of the appeals process will ultimately determine the financial consequences for the former president.
In the meantime, both supporters and critics will closely monitor the progress of the case as it unfolds in the New York courts. Trump’s ability to navigate these legal hurdles could have significant implications for his future endeavors, including any potential return to politics.
Overall, the decision to post the bond represents a strategic move by Trump to buy time as he fights to overturn the judgment against him.
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