Here are possible consequences If Trump fails to come up with massive bond

25 March 2024

Monday, March 25 was the deadline for the $464 million bond that former President Donald Trump must come up with in New York State Attorney General Letitia James' civil fraud case. But late that morning, The Hill reported the breaking news that a New York appeals court had "temporarily stopped the clock on the looming enforcement of a multimillion-dollar judgment against former President Trump and his company."

According to The Hill's Ella Lee, "In a terse order, a state appeals court panel said it would pause the enforcement of the $464 million judgment against Trump, the Trump Organization and top executives, plus interest, if within ten days they post a $175 million bond."

Justice Arthur Engoron came down hard on Trump in that case, agreeing with James that he deceived banks and lenders by seriously exaggerating the value of his real estate assets. In February, Engoron ordered Trump to pay $355 million, which comes out to $454 million when interest is factored in.

READ MORE: 'He was used to getting his way': Stormy Daniels recalls Trump pressuring her

In an article published on March 25, Axios reporters Jacob Knutson and Ivana Saric lay out some possible consequences if Trump is unable to come up with a bond.

"Trump's lawyers said last week that securing a bond that size has been 'impossible' after they approached more than two dozen companies and none were willing to cover the amount," Knutson and Saric explain. "More than 30 bond companies turned down his lawyers' requests to guarantee the bond, the New York Times reported."

The journalists add, "State of play: No company would accept his real estate as collateral and would only accept cash or cash equivalents, his lawyers said. His inability to secure a bond under those terms at the very least suggests he lacks access to a large amount of liquid assets."

According to Forbes, Trump's net worth is around $2.6 billion. But many of his assets are not liquid.

James had threatened to start seizing Trump's assets if he was unable to obtain the $464 million bond by the March 25 deadline. But now, the bond amount, per the New York appeals court, is $175 million — still a significant amount.

"James could have started collecting on the damages after the judgment was imposed," Knutson and Saric report, "but she gave Trump and his co-defendants a 30-day grace period to arrange a bond or prepare to pay the judgment."

The reporters note that James "took a first step toward seizing Trump's properties by filing judgements on March 6 in Westchester County, according to the county clerk's online database."

"It suggests James may seek to seize and sell the Trump National Golf Club Westchester or his Seven Springs private estate north of Manhattan to help fulfill the judgement," Knutson and Saric observe. "James has said she would seize Trump's properties if he can't pay, though actually doing so could be politically contentious."

The journalists add, "It would also be legally complex given the tangled structure and financing used by his businesses. James could also give Trump more time to pay the damages or arrange a lower amount through a counterproposal."

Read Axios full report at this link.

From Your Site Articles