Donald Trump Asserts Financial Security of $175 Million Bond, Urges Judge to Dismiss NY Attorney General's Opposition
Donald Trump's legal team defends the financial stability of the $175 million bond submitted to fulfill the New York civil fraud case ruling, urging the judge to reject the attorney general's challenge and grant reimbursement for costs and fees.
Lawyers representing former President Donald Trump have stated that the $175 million bond posted to meet the requirements of the New York civil fraud case judgement is financially stable. They have urged the judge to reject the attorney general's challenge to the bond and to also grant Trump reimbursement for costs and fees.
In documents submitted to the court on Monday evening, Trump disclosed that the bond, guaranteed by Knight Specialty Insurance Company, is supported by his Charles Schwab account containing over $175 million in cash. According to Trump's filings, Knight Specialty has the authority to access the Schwab account and is fully supported by its parent company to handle any potential risks.
The DJT Trust granted KSIC a security interest in a Schwab brokerage account. According to an affirmation filed by Gregory Serio, a former superintendent of insurance for New York state, the DJT Trust must maintain at least $175 million in cash or cash equivalents in this account at all times.
Additionally, KSIC has a standing agreement with its parent company, Knight Insurance Company, Ltd. (‘KIC’), in which KIC reinsures 100% of KSIC’s risk. The affirmation stated that the $175 million bond in question is adequately secured.
Former President Donald Trump, left, and New York State Attorney General Letitia James.
Former President Donald Trump, left, and New York State Attorney General Letitia James.
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Earlier this month, the New York Attorney General's office raised concerns about the out-of-state underwriter's financial capacity to support the $175 million Trump bond. Judge Arthur Engoron has set a hearing for next week to address this issue.
Trump’s lawyers believe that there is no need for a hearing. They stated in a court filing that the evidence supporting their case is strong enough to justify their position without the need for a hearing to challenge it.
The attorney general's office raised concerns about Knight Specialty's authorization to issue a surety bond in New York and its lack of a certificate from the state regulator confirming its qualifications.
In response, Trump's attorneys argued that a certificate is not the sole indicator of financial stability.
Editor's P/S:
The legal battle over the bond posted by former President Donald Trump in the New York civil fraud case continues, with Trump's lawyers asserting its financial stability and demanding reimbursement of costs. While the bond is secured by a Schwab account containing over $175 million, the New York Attorney General's office has expressed concerns about the out-of-state underwriter's capacity to support the bond. Trump's attorneys maintain that the evidence supporting their case is strong enough to dismiss the need for a hearing, arguing that a certificate is not the sole indicator of financial stability. The outcome of this legal dispute will determine whether Trump's bond will be deemed sufficient and if he is entitled to reimbursement.
