Lawyers for the former president say in a filing that Trump and the Trump Organization, a real estate hospitality and golf resort company owned solely by Trump, will accept the real estate as collateral from a surety company, an insurance company that issues court bonds. He said he was unable to ask for help and was stuck. All efforts to obtain a bond issued within one week.
“Chief among these challenges is not only that the vast majority of sureties are unable and unwilling to underwrite this unprecedented amount of bonds; That is true.” every The surety bond issuers were approached by the defendants to accept real estate as collateral,” said Alan Garten, general counsel for the Trump Company. he wrote in the affidavit.
Garten said Trump and his company, through four brokers, proposed a combination of liquid and real estate assets to 30 surety companies without success. According to him, no one was prepared to accept real estate collateral for the appeal bond.
Lawyers supporting Trump, the Republican who is running against President Biden in the 2024 election, recently asked an emergency appellate judge to approve the 30-year-old attorney general's order to give the company time to meet its appeal bond obligations. It was not possible to request that the deadline be extended. . The judge also rejected an offer to set bail at $100 million in lieu of the full amount. The full committee is expected to consider the same issue soon.
Mr. Trump, his company, and several current and former executives were accused in Manhattan state court this year of engaging in illegal activity in which they lied about the true value of assets and sought to obtain false business profits and savings. As such, civil liability was recognized. Ten years.
New York Attorney General Letitia James, who filed the lawsuit, said Trump misstated the value of his real estate and other assets by up to $2.2 billion annually from 2011 to 2021.
Guarantee company Defense filings show that Trump is being asked to post the total amount needed for the bonds, about $464 million, as collateral. Legal experts said the main reason companies mandate such conditions is that appeals are likely to fail.
“Insurance companies in appellate cases tend to seek the full amount of the judgment as collateral,” said attorney Adam Pollock, a former New York assistant attorney general.
According to JD Weisbrot, surety companies typically only accept cash or irrevocable letters of credit as collateral. He has worked in the industry for more than 20 years and is a managing director of the underwriting firm Risk Strategies.
Mr. Weisbrot said that a wealthy man like Mr. Trump, who has much of his wealth in real estate, would ideally obtain a letter of credit through a bank. He said banks would likely seek the full amount of the bond as collateral, but could accept more types of collateral, such as certificates for real estate, art or other assets. That could free up funds for people who own a lot of real estate.
“My feelings are banks. “They'll probably take a similar position as guarantors, and they'll probably require dollar-for-dollar collateral as well,” he said. “However, banks have more financial flexibility than guarantors when it comes to the type of collateral.”
Trump has few existing relationships with major Wall Street banks, according to financial disclosure statements he filed with the government in August as part of his candidacy. Deutsche Bank, which provided him with many loans before he entered politics that helped him expand his business, is no longer one of his lenders.
