I had a couple of threads on the bonding company before and there do seem to be issues, their first filing didn't even include the the lawyer's signature or the company's financial information.

Then when they fixed this, they included two companie's info. One US company and then its parent company in the Cayman Islands.

Here's what they are going to argue today.

https://s3.documentcloud.org/documents/24558931/452564_2022_people_of_the_state_of_v_people_of_the_state_of_memorandum_of_law_i_1738.pdf

Knight Specialty Insurance company has failed to justify the bond because

1. The Collateral is not sufficiently secure or "ascertainable" meaning the insurance company doesn't have control over $175 million in cash. I think this is going to be a big deal.

For collateral, the Donald J. Trump Revocable Trust (“Trust”) granted KSIC a priority lien on a Schwab brokerage account held by the Trust that Defendants maintain presently has just over $175 million in “cash.” But pursuant to the agreements governing how the collateral is pledged and controlled, the Trust retains ownership of the account and can withdraw funds or make trades in the account unless KSIC objects within two business days after receiving notice of the proposed transaction. **KSIC does not now have an exclusive right to control the account **and will not obtain such control unless and until it exercises a right to do so on two days’ notice. If the value of the funds held in the account dips below $175 million, the Trust promises to “true up” the balance by depositing additional funds in multiple permitted forms, including stocks—a promise that is hollow if the Trust does not have the funds to do so and concedes **the value of the collateral will fluctuate based on market conditions. **

2. We don't trust the company's financial as the true numbers might be in the Cayman Islands.

Second, the Court should not rely on KSIC’s financial summary attached to the bond as evidence that KSIC has sufficient capacity to justify writing a $175 million bond. That is because** KSIC sends 100% of its retained insurance risk to affiliates in the Cayman Islands, where lax regulations allow KSIC to use this risk transfer to reduce the liabilities it carries on its books in a way that artificially bolsters its surplus**—a practice New York regulators have dubbed “shadow insurance” and about which they have sounded the alarm.

3. Knight Specialty Insurance is not trustworthy and has violated federal laws

Third, under the regulations that govern the placement of insurance on an excess lines basis, a licensed excess lines broker may place business with an unauthorized insurer like KSIC only if it is satisfied that the insurer’s management is trustworthy and competent. KSIC is not qualified to act as the surety under this standard because its management has been found by federal authorities to have operated affiliated companies within KSIC’s holding company structure in violation of federal law on multiple occasions within the past several years

If the Judge, Judge Engoron by the way, allows Knight Specialty to put this up, I suspect it will be only after the collateral agreement is changed. But there's a real chance this gets rejected.