Trump's Bond Insurer Doesn't Seem To Have The $175M It's Guaranteeing

[struggle4progress]

34. NY AG questions insurer

Joe Sommerlad
5 hours ago

... Ms James’s office submitted a “notice of exception to the sufficiency of the surety” on Thursday asking for further proof that California-based Knight Specialty Insurance Company (KSIC) has the capital to proceed on the former president’s behalf.

KSIC is not regulated by New York state, which means that it is not authorised to issue surety bonds in the Empire State and therefore cannot obtain a certificate from the New York Department of Financial Services, which is customarily part of any bond package.

“Defendants or KSIC shall file a motion to justify the surety within 10 days of the service of this notice, failing which the bond shall be without effect, except that the surety shall remain liable on the bond until a new undertaking is given and allowed,” the notice read.

Judge Arthur Engoron – who presided over the original three-month trial that ended on 16 February with Mr Trump and his fellow Trump Organization executives being found liable for illegally inflating the value of company assets to obtain favourable terms from lenders – has already moved to schedule a hearing on the matter for 22 April ...

https://www.the-independent.com/news/world/americas/us-politics/trump-fraud-bond-insurer-letitia-james-b2523810.html