“Incomprehensible”: Experts say Trump’s $175 million bond makes no sense

[Smokin' OP]

 

[berg80]

New York AG says $175 million Trump fraud bond isn’t properly backed, should be voided

The New York Attorney General’s office on Friday asked a judge to effectively void a $175 million bond posted by former President Donald Trump to secure a much larger monetary damage award in his civil business fraud case as he appeals the judgment.

The AG’s office in a filing said Trump and other defendants in the case had failed to show there is enough identifiable collateral to back the bond for the judgment in Manhattan Supreme Court.

The filing notes that the surety Trump used to obtain the bond, Knight Specialty Insurance Company, is “a small insurer that is not authorized to write business in New York and thus not regulated by the state’s insurance department, had never before written a surety bond in New York or in the prior two years in any other jurisdiction, and has a total policyholder surplus of just $138 million.”

The filing opposes a joint motion by Trump and KSIC to justify the insurer as the surety company holding the bond.
https://www.cnbc.com/2024/04/19/new...nd-isnt-properly-backed-should-be-voided.html

Seems like it was just a matter of time until this happened since the underwriter of the surety bond is not authorized to do this kind of biz in NY.

 

[Tumblin Tumbleweed]

A. I've learned not to pay attention to "experts"
B. The system is rigged against Trump.
C. You have TDS.

"Experts" told us that the covid vaccine would, you know, stop transmission of covid. "Experts" told us we needed to be locked down.
"Experts" told us that putting a piece of cloth over our face would stop transmission of covid.

From now on, I won't be relying on "experts".

It's your choice to wallow in ignorance.

Magaturds: Full of shit since 2015.

 

[berg80]

It's your choice to wallow in ignorance.

Magaturds: Full of shit since 2015.

N.Y. AG seeks more information about Trump bond and collateral​

WASHINGTON — New York Attorney General Letitia James filed a notice on Thursday seeking more information about former President Donald Trump's bond for the civil fraud case, which was issued by Knight Specialty Insurance Company.

KSIC is not admitted in New York, and James "takes exception to the sufficiency of the surety to the undertaking" given to Trump without a certificate of qualification being issued to the company, James said in the filing.

James asks that Trump's team or KSIC "file a motion to justify the surety bond," or provide further information about collateral provided by the former president, within 10 days.

Don Hankey, the chairman of KSIC, said the $175 million bond posted Monday was fully collateralized by cash from Trump’s company.

N.Y. AG seeks more information about Trump bond and collateral

The New York attorney general filed a notice on Thursday seeking more information about former President Donald Trump’s bond in the civil fraud case.

www.nbcnews.com

She must not have liked what she found.

 

[Fort Fun Indiana]

So the bond is another illegal scam. Shocking.

 

[berg80]

So the bond is another illegal scam. Shocking.

It would appear so.

The company has a total policyholder surplus of just $138 million, the filing says. Under New York state law, companies like Knight can’t expose themselves to liabilities — like a bond — or any potential loss greater than 10 percent of their surplus.

“Based on KSIC’s policyholder surplus in its most recent annual financial statement of $138,441,671, the limitation of loss on any one risk that KSIC is permitted to write is $13.8 million,” the lawyers wrote. “The face amount of the bond exceeds this limitation by $161.2 million.”

The state also argued that because Trump still has access to the $175 million in cash he placed in an account as collateral, the court should find that he and his codefendants “failed to meet their burden to demonstrate that the Bond is ‘sufficiently collateralized by identifiable assets.'”

NY AG asks Trump civil fraud judge to declare $175M bond ‘without effect’

The New York attorney general’s office has asked a judge to void the $175 million bond former President Trump secured to put off paying the larger monetary damage award in his civil fraud cas…

thehill.com

 

[Auld Phart]

MSN

"The New York Attorney General's Office and lawyers for Donald Trump reached a deal on Monday, allowing the former president's $175 bond to stand on certain conditions and essentially tossing Attorney General Letitia James' request."

 

[surada]

New York Attorney General Questions Trump’s $175 Million Bond Deal

Now, however, Ms. James is raising questions that could imperil the deal with Knight, which is owned by Don Hankey, a billionaire who made his fortune with subprime loans. And the judge in the case, Arthur F. Engoron, has tentatively scheduled a hearing for April 22 to discuss the bond.

In a court filing on Thursday, Ms. James noted that Knight was not registered to issue appeal bonds in New York, and so she demanded that the company or Mr. Trump’s lawyers file paperwork to “justify” the bond within 10 days. Ms. James is seeking to clarify whether Knight, which had never posted a similar court bond before aiding Mr. Trump, is financially capable of fulfilling its obligation to pay the $175 million if Mr. Trump defaults.

Even if Knight lacks the funds itself, the company should be able to tap the collateral Mr. Trump pledged.

In an interview this week, Mr. Hankey said that Mr. Trump pledged $175 million in cash as collateral that was being handled by a brokerage firm. Mr. Trump, in the meantime, is able to earn interest on the money.
New York Attorney General Questions Trump’s $175 Million Bond Deal

Don found a way to skirt the law again.

Who is Don Hankey, the L.A. billionaire who financed Donald Trump's appeal bond?

L.A. billionaire Don Hankey made a fortune in subprime auto loans and hard-money lending before coming to the rescue of Donald Trump and financing his appeal bond in the former president's New York civil fraud case.

www.latimes.com