The ongoing legal saga of former President Donald Trump is facing yet another obstacle as he struggles to secure assistance in paying a massive multi-million-dollar bond in his civil case in New York. The ex-president is required to post a $464 million bond by the end of the month to satisfy the judgment against him. However, his legal team has disclosed that they are encountering difficulties in raising the necessary funds.
Challenges in Finding Insurance Company
According to legal documents obtained by TMZ, Trump’s attorneys have expressed that they are facing challenges in finding an insurance company willing to secure the significant financial penalty. They have approached 30 underwriters in an attempt to back the bond, but have been unsuccessful in their efforts. The filing states that the amount of the judgment, combined with interest, exceeds $464 million, making it difficult to find a bonding company willing to take on such a substantial amount.
Trump’s legal team elaborates that potential underwriters typically require the bond to be backed by cash or cash equivalents, ruling out the possibility of using real estate assets to secure the bond. They assert that Trump would need cash reserves approaching $1 billion for an insurance company to consider backing the bond. This indicates that Trump may not have the financial resources required to meet the bond obligations.
Appeal for Postponement of Monetary Judgment
In light of the challenges faced in securing the bond, Trump’s lawyers have petitioned the appeals court to stay the imposition of the massive monetary judgment without mandating the posting of the bond during the appeal process. This move aims to prevent New York Attorney General Letitia James from enforcing collection while the appeal is ongoing. However, a decision on this filing is still pending.
Manhattan Supreme Court Judge Arthur Engoron had previously ruled that Trump and his co-defendants must pay a substantial $464 million in damages after being found liable for conspiring to manipulate his net worth. Out of this total, Trump was specifically ordered to pay $454 million, indicating the severity of the financial consequences he is facing in this civil case.
Overall, the legal battle of Donald Trump highlights the complexities and challenges involved in meeting substantial financial obligations in civil cases. The struggle to secure a multi-million-dollar bond underscores the financial strain faced by the former president as he navigates through ongoing legal proceedings.
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