A judge accepted Donald Trump‘s $175 million bond in his civil fraud case after the former president and Attorney General Letitia James reached an agreement to modify the conditions of the bond during a hearing in New York on Monday.
Judge Arthur Engoron said that so long as Trump gave Knight Specialty Insurance, a small Delaware-based insurer, exclusive access to the bank account that is serving as collateral for the bond, then the judge would approve it, according to a Law360 report.
Engoron’s decision comes after James argued in a motion that Trump did not have “sufficiently secure and ascertainable collateral backing the bond” and that Engoron should therefore reject it.
Trump was required to post the bond while he fights a judgment issued by Engoron in February that he pay $454 million in fines and interest after Engoron found Trump and Trump Organization executives liable for years of business fraud.
An appellate court recently agreed with Trump that while the former president’s appeal of the judgment remains pending, he should not have to post a bond for the full amount of the judgment but rather for $175 million. Trump had argued that he could not pay the full amount because no company would authorize a bond payment of that magnitude.
A Schwab brokerage account that Trump had control over was serving as the collateral for Knight’s bond.
“Your hypothetical is calling into question the veracity of one of the largest financial institutions in the world,” Trump’s attorney Chris Kise argued to Engoron when the judge raised questions about the bond on Monday, according to Law360.
An attorney working on behalf of James then proposed an agreement that would prevent Trump from being able to manipulate funds in the Schwab account.
Kise said he would make changes to the account access that were agreeable to James. The agreement is set to be finalized by Friday.
Trump was not present at the hearing because he was attending a concurrent court event in New York for his hush money trial, during which attorneys gave opening statements on the case.
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Prior to entering the courtroom for the hush money case on Monday morning, Trump focused his attention on the forthcoming civil fraud hearing, blasting James as the “worst attorney general in the country” and criticizing Engoron.
“I just want you to know that that’s taking place in front of an extremely crazed judge who’s the most overturned judge in New York state,” Trump said.
