Former President Donald Trump's Bond Reduced in Fraud Case Appeal

Former President Donald Trump and other defendants involved in his fraud case have appealed to have their bond reduced. The appeal was granted on Monday, and they are now required to put up $175 million within 10 days to pause enforcement of a $464 million judgment against them.

Reduction in Bond

The bond was lowered from $464 million on the day that a 30-day grace period for payment expired, giving them a new financial deadline to meet.

Initiatives by New York Attorney General

New York Attorney General Letitia James had previously indicated that her office would pursue Trump's assets if he failed to post bond. She mentioned during an interview with ABC News in February that they would seek judgment enforcement mechanisms in court and ask the judge to seize his assets if necessary.

Challenges in Posting Bond

Attorneys for Trump expressed that securing such a large bond was a "practical impossibility" due to the substantial amount and the limited number of bonding companies willing to consider it. They also noted that surety providers often require collateral up to 120% to guarantee the bond, driving the needed amount over $500 million.

Options for Enforcing the Judgment

Bruce Lederman, an attorney specializing in real estate law, outlined the range of options available to the attorney general's office in enforcing the judgment if Trump fails to post bond. These include sending restraining notices, executing judicial liens against properties, and tying up security accounts. The process to sell a property in New York takes 63 days, and untangling the web of ownership of some of Trump's properties may present challenges.

Challenges in Seizing Properties

Enforcement rights in other states would be based upon the law of the state where the property is located, and there are additional complications when dealing with properties located outside of Manhattan. For example, Florida does not allow the sale of a primary residence, which may impact the seizure of Trump's Mar-a-Lago club.

Restricting Trump's Financial Transactions

If the deadline passes without Trump posting bond, the attorney general's office could impose a restraining notice that limits his ability to spend freely. This would prevent him from transferring any property or making substantial financial transactions until the judgment is satisfied.

Execution of Judgment

The state could potentially execute a bank execution, allowing a New York sheriff or marshal to walk into a bank branch and drain Trump's account. Additionally, the state could force Trump to turn over his personal property to satisfy the judgment.

Potential Garnishment of Income

The state might also garnish Trump's income and revenues from the Mar-a-Lago Club to collect the outstanding judgment amount, potentially leading to the unusual situation of a former president having his wages garnished by a creditor.