1. State officials are giving Trump or his underwriters ten days to justify the bond, with the decision ultimately resting with New York Supreme Court Justice Arthur Engoron.
2. Knight Specialty Insurance Company, a non-admitted carrier, must prove it is financially sound and the bond’s collateral is sufficient due to New York’s civil practice rules.
3. Trump needs the bond to prevent New York from seizing his properties while he appeals Engoron’s judgment totaling over $469 million, a process that has been difficult as many surety companies have turned him down.
State officials have filed a two-page court document giving former President Trump or his underwriters, Knight Specialty Insurance Company, ten days to justify the sufficiency of a bond required to prevent New York from seizing his properties. Knight is considered a “non-admitted carrier” under state insurance law, necessitating proof of financial soundness and sufficient collateral for the bond. The final decision on the bond’s validity will be determined by New York Supreme Court Justice Arthur Engoron, known for presiding over Trump’s civil trial earlier this year.
The bond is necessary for Trump to avoid seizure of his properties while he appeals a fraudulent asset valuation judgment that has now accumulated to over $469 million. The Los Angeles-based Knight, owned by billionaire Don Hankey, must provide justification for the bond’s underwriting and collateral due to its non-admitted status. Trump’s previous attempts to secure a bond were unsuccessful with approximately 30 surety companies declining his request, including Chubb.
Although this extra step of demanding proof for the bond’s financial backing is uncommon when dealing with large appeal bonds, it could have potentially saved Trump from having to pay half a billion dollars in cash to purchase a bond covering the full amount owed to New York. Despite these challenges, an appeals court recently allowed Trump to post a bond covering a portion of his debt, providing some relief in the ongoing legal battle.