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Former President Donald Trump has taken action in his New York civil fraud case, posting a $175 million bond on Monday.
According to a report on AP, this move temporarily halts the collection of the over $454 million debt he owes and prevents the state from seizing his assets while he appeals the judgment.
The New York appellate court had given Trump 10 days to post the bond after agreeing to reduce the required amount to stop enforcement. The bond serves as a placeholder, ensuring payment if the judgment is upheld. Trump's lawyer, Alina Habba, stated, "President Trump has posted bond. He looks forward to vindicating his rights on appeal and overturning this unjust verdict."
Before the court's intervention, New York Attorney General Letitia James was prepared to initiate collection efforts, potentially seizing some of Trump's properties. The lawsuit, brought by James on behalf of the state, accused Trump of lying about his wealth to obtain loans and deals.
The bond, underwritten by Knight Specialty Insurance, includes a mix of cash and bonds as collateral. Despite facing challenges finding a bonding company, Trump's legal team secured the bond, which is crucial for delaying enforcement of the judgment.
Trump's financial battles extend beyond the New York case. He has also posted bonds and paid legal fees in other lawsuits, including those related to allegations of sexual assault and defamation. Additionally, recent legal fees have depleted a portion of his cash reserves.
While Trump's stake in his social media company, Trump Media & Technology Group, could potentially generate cash in the future, a "lock-up" provision prevents insiders from selling shares for six months.
The legal proceedings surrounding Trump's financial obligations continue, with the appeals court set to hear arguments in September, potentially impacting the final weeks of the presidential race.
[With information sourced from AP]
