To ease his financial burden as he appeals a defamation case, Donald Trump has secured a $91.63 million bond, which includes mandatory interest and fees. This bond serves as collateral to guarantee that the funds will be available if he loses his appeal and the judgment is enforced.
The agreement, made with the Federal Insurance Co. (Chubb), allows Trump to delay any collection efforts by the plaintiff, E. Jean Carroll, who accused him of sexually assaulting her in the 1990s.
Donald Trump and Jean Carroll (Credits: CNN)
Trump agreed to the bond terms on Tuesday, and details of the deal have not been disclosed publicly. Chubb likely charged Trump a premium of $250,000 to $1 million for the bond. Due to the size and publicity of the bond, few companies were likely willing to compete for this business.
With the bond in place, US District Judge Lewis Kaplan can stay Carroll’s ability to collect the judgment, but Trump cannot access the funds until the appeals process is complete. Trump’s lawyers are appealing the defamation verdict, arguing that the damages are excessive and that Kaplan erred in the trial proceedings.
Donald Trump and Jean Carroll (Credits: NBC News)
In addition to the defamation case, Trump also faces a $454 million judgment in the New York attorney general’s civil fraud lawsuit against him and his company. He must obtain a bond for this amount by March 25, as the judgment continues to accrue interest each day and exceeds most estimates of his available cash.
