Former President Donald Trump and other defendants in his fraud case won an appeal to have their bond reduced to $175 million within 10 days to pause enforcement of a $464 million judgment against them. The New York Attorney General, Letitia James, indicated that she would pursue Trump’s assets if he failed to post bond. However, Trump’s lawyers stated that it was practically impossible for them to secure such a large bond as bonding companies require collateral of up to 120%, driving the amount over $500 million.
Trump claimed to have nearly $500 million in cash, but his options for amassing the full $464 million were limited. Surety companies want liquid assets as collateral, such as cash or a letter of credit, rather than hard assets like real estate. The judgment against Trump stems from a civil case where he and others were found liable for a scheme involving falsified real estate and net worth valuations to obtain favorable loan and insurance rates. Bruce Lederman, an attorney, explained that the Attorney General has various enforcement options if Trump fails to post bond, such as judicial liens on his properties.
If Trump doesn’t post the bond within 10 days, the Attorney General can start enforcement proceedings, which may include sending restraining notices, executing on Trump’s real property, and tying up security accounts. James could get judicial liens against Trump’s properties and initiate a process to sell them, which typically takes 63 days in New York. However, untangling the ownership of some properties may be challenging, and loans and mortgages could affect the amount the state can collect. Trump’s Mar-a-Lago club, for example, may be more complicated to seize.
Adam Pollock, a former New York assistant attorney general, explained that a restraining notice would limit Trump’s spending ability while the state enforces the judgment. The Attorney General could also get a bank execution to drain Trump’s account or force him to turn over personal property. Pollock mentioned that Trump’s income and revenues from the Mar-a-Lago Club could be garnished to collect the debt. Trump, as the presumptive Republican nominee for president, could potentially have his wages garnished by a creditor, illustrating the potential consequences of not meeting the bond requirement.
