Trump Bond is ‘nullified’ by big name?

New York Attorney General Letitia James has challenged the $175 million bond posted by former President Donald Trump in his civil fraud case. The bond, posted to appeal the court’s ruling against Trump, has come under scrutiny as James claims it may not meet New York legal requirements.

James’ 26-page dossier, obtained by Fox News, focuses on California-based Knight Specialty Insurance Company (KSIC), which issued Trump’s bonds. She claims that KSIC is not approved to do business in New York, calling into question the company’s financial stability and ability to support such a large bond.

According to the filing, KSIC’s policyholder surplus, a measure of financial stability, is $138,441,671. This is important because New York state law limits the exposure of smaller insurers like KSIC to risks that do not exceed 10% of their surplus. James argues that the $175 million bond far exceeds this restriction.

Additionally, James cited federal findings of irregularities within KSIC’s holding structure, casting further doubt on the bond’s legitimacy. She also said KSIC does not have an exclusive right to control the bond’s account, pointing to potential problems with how the bond is managed.

Given these factors, James asked the judge to void Trump’s bond and require him to post a new bond within seven days of the court’s ruling.

The dispute over the bond has broader implications for Trump’s appeal in his civil fraud case. The bond is intended to cover James’ $464 million judgment against Trump while the case is on appeal. The appeals court had recently reduced the bond requirement from $464 million to $175 million, allowing Trump to delay payment of the judgment pending the appeal.

James’ filing raises questions about Trump’s ability to meet bond requirements and maintain his appeal. If the bond is annulled and Trump fails to obtain a new one, the state could take steps to enforce the original judgment, which could lead to the seizure of his assets.