Advertisement
Former President Donald Trump finds himself entangled in a legal saga following a New York court’s ruling that holds him liable for fraud in a business case. However, before he can proceed with his appeal, he faces a significant challenge: securing an appeal bond.
Trump was recently ordered to pay a substantial fine totaling over $450 million, including penalties and interest. To proceed with his appeal without paying the full amount upfront, he must obtain an appeal bond, typically amounting to 120% of the judgment plus accruing interest. Given the staggering sum involved, estimated at over $540 million, securing such a bond poses a formidable task.
Neil Pedersen, an expert in surety bonds, highlights the complexities involved in using real estate as collateral, suggesting that Trump may need to liquidate assets to meet the bond requirements. Additionally, the bond company is likely to charge significant fees, potentially totaling millions of dollars.
Complicating matters further is Trump’s status as a front-runner for the U.S. presidency. This unprecedented scenario presents a significant risk for any bond company considering his application, as they would be committing to honoring the judgment even if Trump assumes the highest office in the nation.
Trump’s appeal process could span several years, with his legal team vowing to challenge the ruling. However, finding a bond agent willing to work with him may prove challenging, given past legal disputes and controversies surrounding his business practices and wealth claims.
In the meantime, questions loom regarding the fate of Trump’s New York real estate assets. While his attorney downplays the possibility of selling off these assets, Pedersen warns that such a move could pose logistical challenges, particularly considering the illiquidity of real estate holdings and the complexities surrounding property valuation.
As Trump navigates this legal quagmire, the process of securing an appeal bond remains a critical hurdle in his quest to overturn the court’s judgment.