On Monday, a judge rejected Letitia James’ attempt to challenge Trump in a dispute over a $175 million bond, ruling in favor of the former president.
Last Friday, James had sought to nullify Trump’s bond, arguing that the California-based Knight Specialty Insurance Company was not authorized to operate in New York and questioning its financial capacity to support the bond.
“Based on KSIC’s policyholder surplus in its most recent annual financial statement of $138,441,671, the limitation of loss on any one risk that KSIC is permitted to write is $13.8 million,” Letitia James’ office wrote in a 26-page filing according to Fox News. “The face amount of the bond exceeds this limitation by $161.2 million.”
James also argued in her filing: “KSIC is not qualified to act as the surety under this standard because its management has been found by federal authorities to have operated affiliated companies within KSIC’s holding company structure in violation of federal law on multiple occasions within the past several years.”
“KSIC does not now have an exclusive right to control the account and will not obtain such control unless and until it exercises a right to do so on two days’ notice,” James’ office wrote in the filing.
Letitia James requested the judge to cancel Trump’s bond and mandate him to post a new bond within a week of the court’s ruling.
However, the judge rejected James’ request on Monday and upheld Trump’s $175 million bond.
WATCH:
Fox News reported:
Lawyers for James on Monday argued that the court should void Trump’s slashed judgment of $175 million in his non-jury civil fraud trial. James questioned whether the company that posted the massive bond, Knight Specialty Insurance, could actually pay the bond if needed.
The court, though, ruled against James, deciding that the bond will stand.
The court decided the $175 million needs to be in cash — not in mutual funds or securities where the value can fluctuate. The court said Knight Insurance cannot trade or move the money, but said they will retain control of the account.
The court also ruled that Knight Insurance must provide a monthly financial statement to James showing the $175 million in cash and decided that the agreement cannot change without approval from the court.
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