A Race Against Time: Trump Says He Could Have to Sell Properties to Pay $454 Million Penalty

by Jessica

Former President Donald Trump on Wednesday, February 28, offered a bond of only $100 million to a New York appeals court to pause the staggering $454 million judgment he faces in his civil fraud case.

This unprecedented move underscores the financial strain Mr. Trump is facing and raises questions about his ability to meet his legal obligations.

The bond offer, made on Wednesday, signals Mr. Trump’s urgency in seeking relief from the looming financial burden.

Without a bond, the New York attorney general’s office could move forward with collection proceedings at any moment, potentially seizing Mr. Trump’s assets.

The New York Times reports that Mr. Trump’s legal team also requested the court to delay various other penalties imposed by the judge in the fraud case, including a prohibition on obtaining loans from New York banks for three years and a ban on running a company in the state during the same period.

While one appellate court judge heard Mr. Trump’s request, the decision is expected to be temporary. Mr. Trump will still need to convince a larger panel of appellate judges to maintain the pause on the judgment.

In a candid disclosure, Mr. Trump’s lawyers revealed their inability to secure a bond for the full amount, hinting at the possibility of default if the appeals court denies their request.

Without relief, Mr. Trump may be forced to sell some of his properties, a move described as a “punishing blow” to the former president.

The exorbitant judgment, coupled with restrictions on lending transactions, poses significant challenges for Mr. Trump. His net worth, primarily tied to real estate, may not suffice to cover the hefty penalties he faces.

Despite sitting on over $350 million in cash and other liquid assets, the cumulative judgments in the civil fraud case and a defamation trial far exceed his available resources.

The case brought by New York Attorney General Letitia James alleges that Mr. Trump fraudulently inflated his net worth by billions of dollars.

If the judgment stands, Ms. James could take drastic measures to enforce it, including seizing Mr. Trump’s bank accounts and New York properties.

In response, Ms. James’s office vehemently opposed Mr. Trump’s request, asserting that he lacks sufficient liquid assets to satisfy the judgment.

They argue that a full bond or deposit is necessary, dismissing Mr. Trump’s offer to post a partial undertaking as inadequate.

As the legal battle intensifies, Mr. Trump finds himself in a precarious position, navigating a complex web of financial and legal challenges.

The outcome of his appeal could have far-reaching implications, not only for his personal fortune but also for his future endeavors.

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