Trump Refused to Pay the $464 Million Bond: A Legal Conundrum

Trump Refused to Pay the $464 Million Bond
Trump Refused to Pay the $464 Million Bond

Former President Donald Trump is facing a civil fraud judgment of $464 million. As court disputes rage, the illusive bond needed to terminate proceedings remains elusive. In this post, we look at the complexities of this high-stakes circumstance.

The Unmet Bond Requirement

Trump and his firm must post a bond for the full judgment amount by next week to avoid New York Attorney General Letitia James from collecting during the appeal process. However, cementing this link has proven to be a daunting task.

Trump Refused to Pay the $464 Million Bond

Diligent Efforts and Frustrated Attempts

Trump’s legal staff worked feverishly to acquire the bond. They approach around 30 surety businesses through four brokers. Despite endless hours of negotiating, the truth remains grim: securing an appeal bail for the entire sum is nearly impossible.

The Bonding Conundrum

Bonding businesses have strict criteria. They refuse to take physical assets like real estate as security, instead preferring cash or currency equivalents (such as marketable securities). Furthermore, these corporations often want collateral equal to 120% of the judgment amount, which is around $557 million.

 The Financial Burden

Even if Trump wins his appeal, the initial cost of securing the bond, around $18 million, is not recoverable. Such a large sum emphasizes the severity of the problem. Collateralizing the bond and maintaining sufficient capital requires about $1 billion in cash or equivalents.

Real Estate Holdings vs. Judgment Amount

Trump’s real estate portfolio, which includes renowned properties such as 40 Wall Street, Doral Miami, and Mar-a-Lago, is worth significantly more than the verdict sum. However, the process of transforming these assets into liquid collateral remains complex and unclear.

Read our previous articles if you are interested in reading additional ones that are related to Donald Trump:

Final Line

As the court struggle drags on, Trump’s financial situation worsens. The $464 million bond is a daunting obstacle, testing his resources and legal maneuvers. The outcome is uncertain, but one thing is certain: the former president’s financial tale continues to enthrall the country.

Alex Hoffman-Ellis is a nerd who love technology and computers. He has been building computers for over 5 years now, and have always loved the challenge of learning how to make them faster, better, and more efficient. He's here to share his insights on these as a journalist, a designer and a technologist with love for writing and tech stuff. Words from Alex Hoffman: “Technology is best when it brings people together.”