Letitia James filed a ā€˜notice of exception to the sufficiency of the suretyā€™ seeking more information about Knight Specialty Insurance Company

Donald Trumpā€™sĀ $175m bondĀ in hisĀ New YorkĀ civil fraud case has been thrown into doubt by New York Attorney GeneralĀ Letitia JamesĀ after she filed a notice asking for evidence that the out-of-state firm that underwrote it really has the money to pay up.

Ms Jamesā€™s office submitted a ā€œnotice of exception to the sufficiency of the suretyā€ on Thursday asking for further proof that California-basedĀ Knight Specialty Insurance CompanyĀ (KSIC) has the capital to proceed on theĀ former presidentā€™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.

  • Dr. Bob@lemmy.ca
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    8 months ago

    I am not an expert and this is not my area.

    Another article this morning (Iā€™ll link if I can find it) said that a normal bond (construction surety etc.) follows the rules you laid out. There is specific language in NY legislation with extra requirements for court bonds.

    eta: https://www.cbsnews.com/news/donald-trump-175-million-civil-fraud-bond-valid-new-york/

    ā€œFor court bonds, as regulated by the CPLR, the law is clear about in-state license requirement,ā€ said Pollock, who noted that there are surety bonds used in other industries like construction that would not be subject to that rule.