Big Trump day for @Law360 . While @frankrunyeon and @stewartbishop cover openings in Donald Trump's NY criminal trial, I'm next door in civil court for args over the sufficiency of Trump's $175M bond to secure the NY AG's $465M fraud judgment pending appeal.
@Law360 @frankrunyeon @stewartbishop Engoron seems dubious of relying on Charles Schwab to maintain $175M of collateral:
"What if they break the agreement?” he asks.
"Your hypothetical is calling into question the veracity of one of the largest financial institutions in the world," responds Trump atty Chris Kise.
"What if they break the agreement?” he asks.
"Your hypothetical is calling into question the veracity of one of the largest financial institutions in the world," responds Trump atty Chris Kise.
@Law360 @frankrunyeon @stewartbishop Kise tells Engoron that even if the bond falls thru (which won't), there's a sold backup for collecting on the judgment:
“There's hundreds of millions of dollars worth of real estate that the defendants own right here in the city that could be seized with the stroke of your pen"
“There's hundreds of millions of dollars worth of real estate that the defendants own right here in the city that could be seized with the stroke of your pen"
Kise adds it's "ironic" for AG, who wants Trump Org booted from NY, to complain Knight is out of state.
"It appears no matter what we do, they’re going to find fault with it... President Trump effectively wrote a check for $175M and put it in an account. It’s not going anywhere”
"It appears no matter what we do, they’re going to find fault with it... President Trump effectively wrote a check for $175M and put it in an account. It’s not going anywhere”
Now AG lawyer Andrew Amer is up. He says the problem with the Schwab collateral is that "while the funds are cash today, under the terms of the pledge agreement and control agreement they can be swapped out for less secure collateral like mutual funds."
Amer proposes a settlement of sorts: Trump team agrees to keep everything in cash and a few other provisions, and they'll drop the challenge. Kise says this seems doable.
We're taking a 20 minute break for them to discuss a possible agreement. Stay tuned.
AGREEMENT REACHED: Kise says they'll agree to maintain the Schwab account in cash and give Knight exclusive control of the account. Under a previous agreement, a Trump trust shared control. Seems like this will moot the AG's challenge to the bond.
Andrew Amer says "the AG is fine with all these conditions stipulated on the record."
Judge accepts it, and court is adjourned.
Thanks for following along folks, despite the anticlimactic ending!
Judge accepts it, and court is adjourned.
Thanks for following along folks, despite the anticlimactic ending!
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