An appeals court in New York decreased the bond in the civil fraud lawsuit against former President Donald Trump from $464 million to $175 million on Monday. The five-judge panel also granted an extra ten days for the payment, overriding the earlier court directive to post the bond by March 25.
The ruling emanates from New York’s Civil Practice Laws and Rules § 5519(c) that permits a defendant to seek a stay (a suspension of a case or a particular proceeding within a case) on a court order if an appeal is pending. Trump’s legal team is currently in the process of appealing the verdict of the New York Supreme Court where he was found guilty of various charges including falsifying business records and conspiracy to commit insurance fraud.
Trump’s attorneys argued that the initial bond amount was a “practical impossibility”. They posited that no company would accept such a loan and that the required collateral would amount to $557 million in cash or its equivalent.
Trump, on his social media platform Truth Social, asserted that the high bond was part of a scheme to deplete his assets, which could prevent him from contesting President Joe Biden in the November election. Furthermore, he claimed that his real estate assets were undervalued by the court to make the bond more challenging to meet.
The court denied New York Attorney General Letitia James’ request to refuse the stay. She reasoned that the bond did not legally need to be posted by only one company, and it could be split as necessary. She also noted that such high-value bonds are not uncommon, pointing to examples from other high-profile cases.
The decision didn’t only reduce the bond amount. Trump and several associates were also relieved from previous prohibitions that barred them from holding posts as officers or directors of a New York-based corporation and from obtaining loans in the state.
Beyond this lawsuit, Trump faces an array of legal issues, including a classified documents case and a 2020 election interference case.