New York Judge Arthur Engoron on Monday accepted the $175 million bond former President Trump posted to appeal his civil fraud case, but the judge imposed several new conditions to ensure sufficient cash funds remain available.
Why it matters: Approving the bond for the appeal will prevent New York Attorney General Letitia James from seizing Trump’s assets or freezing his bank accounts while he fights the judgment.
State of play: James requested earlier this month that Knight Specialty Insurance Company, which issued the bond, or Trump’s lawyers, prove the company is financially able to perform under the bond.
- The company isn’t registered with the Empire State’s Department of Financial Services.
- In a court filing Friday, James wrote that the defendants and the company had “failed to justify” the surety of the bond.
- James asked Engoron to void the bond and require Trump to post a replacement bond within seven days of the ruling.
The big picture: While Engoron allowed the bond to stand, Trump and Knight Specialty Insurance Company agreed to meet several new requirements, per a spokesperson from the New York State Attorney General’s office.
- These include that Knight Specialty Insurance Company will retain “exclusive control” of the $175 million account, and the company and Trump will provide a monthly account statement certifying that there are sufficient cash funds for the bond.
- Knight Specialty Insurance Company has agreed to designate an agent of process in New York.
- The agreement between the company and Trump also cannot be amended without court approval.
Zoom out: Trump was initially ordered to post a $454 million bond in the case after being found liable for financial fraud, although Trump swiftly appealed the judgment.
