Attorneys for former President Donald Trump resolved a significant bond dispute on Monday in the backdrop of his ongoing criminal trial. The resolution came amid the civil lawsuit by New York Attorney General Letitia James, which led to a $175 million bond posted by Trump’s business to cover a hefty judgment.
James had raised concerns about the bond’s validity, suggesting that the former president’s business might replace the cash bond with a less secure form of collateral, which could lead to further complications. Her office’s argument was that this “loophole” could undermine the bond’s reliability, potentially allowing Trump or his surety to swap cash with volatile assets like mutual funds.
During Monday’s proceedings, Andrew Amer, a prosecutor with the attorney general’s office, presented five conditions to close the loophole. These included maintaining the bond account with cash and granting exclusive control of the account to Knight Specialty Insurance Company, the surety behind the bond. Trump’s attorney, Chris Kise, accepted these conditions after a brief recess, ensuring the stability of the bond.
Judge Arthur Engoron approved the new agreement, indicating that the parties would submit a formalized arrangement by Thursday. The outcome effectively diffused the dispute over the bond’s structure and secured the backing of the $175 million bond, reducing the risk of state seizure of Trump’s assets.
The original judgment requiring Trump to pay $464 million in disgorgement and prejudgment interest followed a court finding that his business had engaged in a decade of fraud. While Trump initially attempted to delay the payment, the Appellate Division First Department reduced the bond’s size to $175 million, which Trump’s team collateralized through a Charles Schwab brokerage account controlled by the Donald J. Trump Revocable Trust.
