Billionaire known for high-interest loans to car buyers with poor credit chairs the insurance group that underwrote Trump’s $175 million bond

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Donald Trump posted a $175 million bond on Monday in his New York fraud case, freezing more than $454 million in debt and preventing the government from seizing his assets to satisfy the debt. they complainaccording to the court order.

An appeals court in New York gave the former president 10 days to pay the money after judges agreed last month to reduce the amount that was supposed to stay the enforcement period.

The bond that Trump is posting with the court is now permanent, meaning it guarantees payment if a judgment is issued. When this happens, the presumptuous Republican presidential nominee will have to pay the entire government, which grows by the day.

If Trump wins, he won’t have to pay the government anything and will pay back the money he has already given.

“As promised, President Trump has entered into a deal. He is looking forward to asserting his rights on appeal and overturning this unjust decision,” said one of Trump’s lawyers, Alina Habba.

Until an appeals court intervened to reduce the required interest, New York Attorney General Letitia James was prepared to initiate the action, possibly by seizing some of Trump’s properties. James, a Democrat, brought the case on behalf of the state. His office declined to comment Monday.

The court ruled after Trump’s lawyers complained that it was “impossible” to get the historian to sign the $454 million bond, plus interest, that he owes.

The company that wrote the contract is Knight Specialty Insurance, which is part of the Knight Insurance Group. The company’s chairman, billionaire Don Hankey, told The Associated Press that both the money and the bond were used as collateral for Trump’s appeal.

“That’s what we do at Knight Insurance, and we’re happy to do it for anyone who needs collateral,” said Hankey, who is best known in the business for creating high-risk, high-interest loans for auto buyers. and bad credit history. Hankey told the AP that he had never met or spoken to Trump.

Trump is fighting to destroy it the judge on February 16 found that he he lied about his wealth as he strengthened the dynasty of the houses that brought him fame and leadership. The case focused on how Trump’s wealth was valued on financial documents that went to banks and insurers to obtain loans and contracts.

Trump denies any wrongdoing, saying the words were literal he reduced his chancesHe came with a denial and not taken at face value and the institutions that loaned or insured him.

The state court’s Appellate Division has said it will hear the arguments in September. The exact date has not been set. If the plan works, it will fall in the final weeks of the presidential race.

Under New York law, an appeal usually does not prevent the decision. But there is only a break – legally, stay – if the person or organization receives a loan guaranteeing the payment of the loan.

Sometimes the courts grant exemptions and reduce the amount required to stay, as was the case with Trump.

Trump’s lawyers told the appeals court that more than 30 companies are unwilling to take on mixed real estate investments as collateral for the $454 million-plus bond. Underwriters only insist on cash, stocks or other liquid assets, the lawyer said.

They said that most companies that have loans require a collateral of 120% of the amount they have.

Trump recently said he has about half a billion dollars in cash — along with billions of dollars in real estate and other assets — but said he wants to have money to support his presidency.

Recent legal bills have taken a big chunk out of Trump’s coffers.

In addition to the $175 million he was supposed to pay in the New York case, Trump sent $97 million to fund the writer E. Jean Carroll as he appeals the distribution of his convictions to federal agencies. trials. Juries found that he raped her in the 1990s and defamed her when he went public with the allegations in 2019. He denies everything he says.

In February, Trump paid $392,638 in legal fees ordered by a judge to subpoena The New York Times and three journalists after he was unsuccessfully sued over a 2018 Pulitzer Prize-winning story about his family’s finances and taxes.

In March, the British court ordered Trump to pay 300,000 pounds ($382,000) to a company that did not win the so-called Steele dossier that contained allegations against him. Trump said the claims were false.

Trump can make money by selling some of them about 60% of the goods he has his own new public company, Trump Media & Technology Group — but it may be a long-term drama. Trump’s net worth may be in the billions of dollars, but the “lock-in” prevents insiders like him from selling their shares for six months.

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