A New York state appeals court has lowered the bond amount in Donald Trump’s civil fraud case to $175 million while he appeals the ruling. The former president had faced a Monday deadline to post a much higher amount — closer to a half-billion dollars — but Monday’s order gives him 10 days to secure that lower amount.
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The 11th-hour ruling from a panel of state Appellate Division judges, all appointed by Democratic governors, is a major victory and relief for the former president, whose attorneys had said coming up with the larger bond was a “practical impossibility.” The ruling also means state Attorney General Letitia James’ office cannot yet begin collecting on the judgment.
“I greatly respect the decision of the appellate division and I’ll post the $175 million in cash or bonds or security or whatever is necessary very quickly within the 10 days, and I thank the appellate division for acting quickly,” Trump said in front of cameras after he left a New York courtroom for a hearing in the hush money case.
Before Monday’s ruling, Trump was liable for $454 million, most of the fraud judgment, but the amount he owed had been increasing by more than $111,000 a day because of added interest.
Trump claimed on social media Friday that he had nearly $500 million in cash that he had planned to use toward his 2024 presidential campaign. The former president, however, hasn’t used his own money toward his presidential campaigns since 2016.
He had also floated the idea last week of mortgaging or selling off his properties, saying he would be forced to do so at “Fire Sale prices.”
His lawyers noted in court filings that bond companies typically “require collateral of approximately 120% of the amount of the judgment” — which in this case would total about $557 million.
Trump’s lawyers said in one filing a week ago that they hadn’t been able at that point to secure a bond, and believed it was “a practical impossibility.” They said that they approached 30 surety companies through four separate brokers, trying to negotiate with the world’s largest insurance companies.
The other bond companies will not “accept hard assets such as real estate as collateral,” but “will only accept cash or cash equivalents (such as marketable securities),” his lawyers said.
Trump’s lawyers had asked the state appeals court to either reduce the amount of money he had to post or stay the award without him posting any security while he appeals Engoron’s order.
The decision Monday also puts a stay on the part of the original judgment that barred Trump from serving as a public officer of a company, as well as the prohibitions placed on Weisselberg, McConney, Donald Trump Jr. And Eric Trump.
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