Former President Donald Trump is facing challenges in finding an insurance company willing to underwrite a bond to cover the substantial judgment against him in the New York attorney general's civil fraud case. Trump's legal team revealed that out of the 30 underwriters approached, very few are willing to consider a bond of the magnitude required, which exceeds $464 million with interest.
An insurance broker who testified for Trump during the trial stated that securing a bond in the full amount is nearly impossible. The underwriters are demanding cash to back the bond, not properties, further complicating the situation.
Trump's lawyers have requested the appeals court to delay posting the bond until the appeal process is complete, citing the high value of Trump's properties compared to the judgment amount. The appeal stems from a civil fraud case where Trump was ordered to pay $454 million, including disgorgement for his adult sons.
In a recent ruling, Trump was found liable for fraud, conspiracy, and issuing false financial statements. The judgment amount, including interest, exceeds $450 million. Trump is appealing the decision, but to halt enforcement, he must post a bond, which has proven to be a significant challenge.
Despite posting a bond in a separate case earlier, Trump is facing difficulties due to underwriters' internal policies limiting bonds over $100 million and their preference for cash or stock over real estate. The total amount required, including fees and interest, surpasses $550 million.
According to industry experts, securing an appeal bond of this size for a private individual is unprecedented. The lack of underwriters willing to accept real estate as collateral has been identified as a major obstacle in obtaining the bond.
In response, a Trump campaign spokesman criticized the size of the fraud judgment, calling it an abuse of the law and a threat to the rule of law in New York. Despite the challenges, Trump's legal team remains committed to fighting the judgment and pursuing legal avenues to address the situation.
