You know that corrected bond #Trump has filed today? Well, Tish James’s team has now made a filing of their own, asking, under a NY law, for a justification of the surety. What does that mean? #legal
@GottaLaff According to the law cited in her petition she is questioning whether Knight Specialty Ins is authorized in NY to issue that surety. LOL James is no joke. She is going to press that Queens man to the wall until he has no more wiggle room. If Knight is not authorized, it is curable by the state giving authorization. As I suggested...some lawyer or lawyers do not know what is required to post surety in NY.
@Wileymiller@GottaLaff Could be. But I've been dealing with some lawyers recently who really should never have been barred. They just do not know what they are doing, pay no attention to detail, and can't work their way out of a paper bag. I had to take over a mediation from my own lawyer recently. Told the mediator, just talk to me now so we can get this done!...It was ridiculous.
@Wileymiller@fulanigirl@GottaLaff
Not sure delay helps him. The interest is still compounding. The only thing that helps him is a quick, successful appeal.
"(2) The superintendent may on written application issue to any company his certificate of qualification stating the company's capital and surplus as shown by its last annual statement or its last filed report on examination, whichever is later, and that such capital and surplus complies with the requirements of this chapter. The certificate shall further indicate the limitation upon the amount of a single risk which such company is authorized to assume."
@GottaLaff@Wileymiller Bonds aren't paid in cash to the court; they're provided by companies that give the court (which is acting on behalf of the party holding the judgment) an IOU promising to pay that judgment if the judgment debtor's appeal is unsuccessful and the judgment debtor (eg, Trump) then fails to pay it himself. That's why the court insists that bonding companies provide financial statements, local powers of attorney, etc.: to ensure they'll pay if required.
@Wileymiller@GottaLaff There are two kinds of bonds. One is a cash bond where the person posting must secure by posting the whole amount (cash or assets...like a deed). The other is a surety bond where the company posting the bond guarantees the payment. Bail bondsmen, for example are sureties. Think about the reality TV show...that guy is hunting fugitives because he doesn't want to pay the amount of the surety. The posting co. just needs sufficient assets to cover bond.
@fulanigirl@Wileymiller@GottaLaff It'll be interesting to see this play out. I read something that said he had actually payed the money to the surety folk (or had put it in an account for them, which seems sketchy). If he had done that with them, why wouldn't he for NY, unless it was not really in the alleged account or not accessible to them.
@CStamp@Wileymiller@GottaLaff Normally you pay the surety a % of the face amount of the bond. But, I think this could be a gamble for the surety company. He is not known to pay bills. So, if he losses the case on appeal, will he try to beat the surety for the $? It's possible.
@fulanigirl@Wileymiller@GottaLaff Is the phrasing here normal legalese? In plain language, I would expect it to be described as Knight promising Knight would pay the state, not Knight promising Trump would pay the state, but I wouldn't know for sure if there's some established weird interpretation.
@NIH_LLAMAS@Wileymiller@GottaLaff Trump owes the full amount of the judgment. The point of the surety is if the losing party who is required to post the bond (Trump et al., ) does not pay, the surety company, in this case. Knight Specialty Ins will be on the hook to NY for $175 million. This is the point of a surety bond.
@fulanigirl@NIH_LLAMAS@Wileymiller@GottaLaff If this happens (Trump loses; NY seeks to collect off Trump; Trump fails to pay; NY seeks to collect off Knight; Knight fails to pay) it sounds more complicated and time consuming for NY to collect.
@elronxenu@NIH_LLAMAS@Wileymiller@GottaLaff Yes, but that is the process. That's why James wants to make sure Knight can qualify to be a surety. @GottaLaff just posted Engoron scheduled a hearing. Now we will see what comes slithering out. Have to make sure I am adequately stocked with snacks that day.
Thanks for that explanation. Not being a lawyer or ever being in court for anything just leaves me to operate on logic...a silly thing to do when it comes to legal matters.
So this would beg the question, why would anyone agree to post the bond if they don't have the assets to cover it, especially for Trump?
@Wileymiller@GottaLaff So..Trump was dragging the bottom trying to get the bond. A company may not understand all the requirements to be a surety because obviously this is not something the company in question does regularly. I don't think they were trying to pull a fast one (with Trump that could have been a possibility!). The new bond filing corrects the deficiencies. I think they just didn't know what they were doing when it was filed.
*edit - spelling
@Wileymiller@GottaLaff Oh I am sure they have tried, repeatedly. However, a lawyer gets to a point where they must decide to chose the $ or to let the client go. So many of them chose $ and they will soon learn, as so many in that orbit are learning, the reputational loss, loss of licenses, and possibly loss of liberty will not be worth whatever $ they receive.
@Dr_Elizabeth97 Partially this and partially some don't care about the risks. They just want to be in his orbit. He chooses incompetence because these people are loyalists sycophants.
Add comment