31
posted ago by WTFjusthappened ago by WTFjusthappened +31 / -0

Trump was on Fox this morning and was asked if he could secure the money for his court judgements. He said he had plenty of money and he was not worried about it. I can't find a clip on the Fox website, but he was talking to Brian Kilmeade.

I wonder if this means Trump was able to secure a loan. Because last week Trump's lawyers told the judge he needed to secure a loan or sell assets. Trump's court documents from this weekend indicate he will not be putting up the money himself, but instead he will be seeking a bond

Big Week coming up. We should know some of these answers in a few days. Trump has two large judgements that he needs to "STAY" while he appeals and one deadline is this week

The "stay of the judgment" means put it on pause while he appeals. Without the stay, you can still appeal, but it means the other party can begin collecting on the judgement. (In NY state, you have an automatic 30 day stay, but to pause it beyond that, you need to put to put the money into escrow. You need to put up 110% of the judgement.)

If you have all the money, you can write a check. Or you can go to surety company and get a bond which is like a bail bond, you work with a bonding company to put up the whole amount and you pay a fee. This would require a lot of collateral and some of that collateral might need to be liquid. Hence, Trump asking about loans.

First Case The E Jean Carroll judgement is coming up first. Over the weekend Trump argued for a stay until his post trial motions are ruled on and there may be a ruling on that today. Here's the court document

Trump asked for two things. **First **he wanted a stay with no bond at all.

Second he wants to put up about 25% of the required bond.

even if the Court does not grant an unsecured stay during this period when the risk to the plaintiff is “minimal, it should, at very least, grant a partially secured stay in an amount substantially reduced from the $91.63 million otherwise required... to $24.475 million

This court documents also seem to indicate Trump is looking to work with a bond company rather than put up the money himself.

Denying a Stay Will Inflict Irreparable Harm. Carroll argues that monetary injuries are not irreparable harm “because money can always be returned.” But Carroll concedes that President Trump will “incur fees often associated with obtaining a bond,” which are considerable for a bond this size.

They later mention

he ‘corporate guaranty fee associated with the supersedeas bond premiums”)

These bond fees are not cheap

There are a variety of factors that go into it, but generally speaking, the cost for an appeal bond can range from 0.30% to 4%.

It depends on your collateral.

Real estate is the most expensive collateral option, typically costing 4% of the appeal bond amount per year.

This is why Trump may still seek a loan even if he is going with a bonding company.

Trump asked the judge to rule by yesterday, but the judge did not.

If a stay is not granted, Trump has to put up the money later this week. Friday I believe.

Second Case Interestingly Trump went to court on the second case first and the judge already ruled on his motion.

In that case Trump also asked for a stay of the judgement and also wanted to put up less than the standard amount to guarantee a stay, in this case he offered $100 million about 1/4 the total amount of $464 million.

Trump's arguments begin way down in the document, look for EXHIBIT AA

Significantly, Trump's lawyers mentioned Trump would need to raise capital and without a modification of the judgement, Trump would have to sell properties.

In the absence of a stay on the terms herein outlined, properties would likely need to be sold to raise capital under exigent circumstances,

and

As set forth above, by blocking Appellants from borrowing and otherwise conducting their business, Supreme Court’s order would make it impossible for Appellants to post a bond in the full amount of the Judgment.

So Trump has told the courts he would need to raise capital and wants to do this through a loan.

The judge denied Trump's offer of paying only $100 million, but did pause the ban on getting loans from banks in NY. Trump has until March 25 to stay the judgment.