The $175 million bond former President Trump posted to appeal the $364 million judgment against him in his civil fraud case meets legal standards, New York Judge Arthur Engoron ruled Monday.
Why it matters: Approving the bond for the appeal will prevent New York Attorney General Letitia James from seizing Trump's assets or freezing his bank accounts while he fights the judgment.
State of play: James requested earlier this month that Knight Specialty Insurance Company, which issued the bond, or Trump's lawyers, prove the company is financially able to perform under the bond.
- The company isn't registered with the Empire State's Department of Financial Services.
- In a court filing Friday, James wrote that the defendants and the company had "failed to justify" the surety of the bond.
- James asked Engoron to void the bond and require Trump to post a replacement bond within seven days of the ruling.
The big picture: While Engoron allowed the bond to stand, Trump and Knight Specialty Insurance Company agreed to meet several new requirements, per a spokesperson from the New York State Attorney General's office.
- These include that Knight Specialty Insurance Company will retain "exclusive control" of the $175 million account, and the company and Trump will provide a monthly account statement certifying that there are sufficient cash funds for the bond.
- Knight Specialty Insurance Company has agreed to designate an agent of process in New York.
- The agreement between the company and Trump also can't be amended without court approval.
Zoom out: Trump was initially ordered to post a $454 million bond in the case after being found liable for financial fraud, though Trump swiftly appealed the judgement.
- The bond was later reduced to $175 million, which Trump posted at the start of the month.
- Billionaire Don Hankey, the chairman of Knight Specialty Insurance Company, underwrote the bond. Hankey had donated to Trump's previous campaigns.
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