Former President Donald Trump is facing challenges in finding an insurance company to underwrite his bond to cover the significant judgment against him in the New York attorney general’s civil fraud case. Trump's lawyers revealed that he has approached 30 underwriters for the bond, which is required by the end of this month.
The judgment, totaling over $464 million with interest, poses a hurdle as very few bonding companies are willing to consider such a substantial amount. An insurance broker who testified for Trump during the trial stated that securing a bond in the full amount is practically impossible.
Potential underwriters are demanding cash to back the bond, rather than properties, according to Trump’s legal team. They have requested the appeals court to postpone posting the bond until the appeal process is completed, citing the high value of Trump's properties compared to the judgment.
In a recent ruling, Trump was ordered to pay $355 million in disgorgement by New York Judge Arthur Engoron, who found Trump and his co-defendants liable for fraud and conspiracy. The defendants were accused of inflating the value of Trump's assets to obtain favorable loan and insurance rates.
To halt the state from enforcing the judgment, Trump must post a bond to be held in an account during the appellate process, which could extend for years. Trump previously posted a $91.6 million bond for his appeal in the E. Jean Carroll defamation case.
However, challenges persist as major underwriters have internal policies limiting bonds above $100 million and are reluctant to accept real estate as collateral. The total amount required, including fees and interest, exceeds $550 million, making it a daunting task to secure the bond.
Alan Garten, the top legal officer of the Trump Organization, highlighted the difficulty in finding underwriters willing to accept real estate, labeling it a significant obstacle in obtaining the bond.
