Letitia James filed a ‘notice of exception to the sufficiency of the surety’ seeking more information about Knight Specialty Insurance Company

Letitia James filed a ‘notice of exception to the sufficiency of the surety’ seeking more information about Knight Specialty Insurance Company

Donald Trump’s $175m bond in his New York civil fraud case has been thrown into doubt by New York Attorney General Letitia James after she filed a notice asking for evidence that the out-of-state firm that underwrote it really has the money to pay up.

Ms James’s office submitted a “notice of exception to the sufficiency of the surety” on Thursday asking for further proof that California-based Knight Specialty Insurance Company (KSIC) has the capital to proceed on the former president’s behalf.

KSIC is not regulated by New York state, which means that it is not authorised to issue surety bonds in the Empire State and therefore cannot obtain a certificate from the New York Department of Financial Services, which is customarily part of any bond package.

  • Ranvier@sopuli.xyz
    2·
    8 months ago

    Oh what I mean is, if new york doesn’t accept this bond as valid, the company that promised the invalid bond is still on hook for the 175 million, but right now, even though it doesn’t count as a bond for Trump. The bond company could sue Trump to recover that though, and Leititia James can immediately start going after Trump and the shady company both. It won’t work as a bond if it’s not valid, but they’ve still made themselves liable by submitting these filings, unless Trump gives the state the money or a valid bond is submitted.

    Failure to justify. If a motion to justify is not made within ten days after the notice of exception is served, the undertaking shall then be without effect, except as provided in this subdivision. Unless otherwise provided by order of court, a surety on an undertaking excepted to and not justified shall remain liable until a new undertaking is given and allowed, but the original undertaking shall be otherwise without effect.

    https://law.justia.com/codes/new-york/2022/cvp/article-25/2507/

    Unless I’m misreading this.