The deal reached in Manhattan civil court essentially moves the all-cash collateral to a Trump-proof vault. Only the bond underwriter, Knight Specialty Insurance Company, has the key.
Previously, Trump and Knight shared control of the treasury, a sticking point for the attorney general’s office.
Monday’s deal was reached during a 20-minute discussion between the attorneys, Law360 reported.
The hearing revealed that the money, held in a Charles Schwab account pledged to KSIC, has already earned Trump $700,000 in interest, the outlet reported.
NEW YORK, NEW YORK – JANUARY 17: Former President Donald Trump speaks during a press conference at 40 Wall Street on January 17, 2024 in New York. Trump held a news conference after leaving the second day of his defamation trial involving E. Jean Carroll. The trial is expected to determine how much damages the former president must pay to Carroll following public comments he made while president and after the jury’s verdict in May. Carroll was awarded $5 million in damages in May following the earlier lawsuit. Alexi J. Rosenfeld/Getty Images
The 10 a.m. bond hearing coincided with the start of opening statements in Trump’s criminal trial, held on the same street in Lower Manhattan, two courthouses to the north.
The bond prevents AG Letitia James from potentially seizing Trump’s assets to settle the more than $454 million he owes the state after losing last year’s civil fraud trial.
Trump is appealing the penalty, which continues to accrue interest at the rate of $1 million every nine days. As of Monday, its debt to New York stood at $460 million.
The monetary judgment and other sanctions — including a three-year ban on Trump running a business in New York, currently on hold due to the appeal — were imposed in February.
State Supreme Court Justice Arthur Engoron, who presided over the nearly 11-week fraud trial, found that for a decade, Trump, his older sons and the Trump Organization exaggerated his net worth in the states financial instruments used to secure more than $400 million in loans. .
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