On Monday, former President Donald Trump posted a $175 million bond in New York, and he seemed to have a reprieve. However, New York Attorney General Letitia James is trying to kill the deal by questioning the reliability of the bond company.
According to CBS News, Bruce H. Lederman, an attorney who has filed many bonds in New York, claims the surety bond needs to include vital information typically included in those filings. These standard elements include documents related to power of attorney for the bond provider, Knight Specialty Insurance Company, a financial statement from the company, and a certificate of qualification from the Department of Financial Services.
James, who vowed to get Trump during her campaign, filed her concerns about the bond on Thursday after CBS published the story with material she could use.
An attorney expresses concerns, gives her ammo, and then she files. Sounds like a setup.
James took “exception to the sufficiency of the surety” given by Trump and the other defendants. She objected to the fact that the bond was issued by a company that is not an admitted carrier in New York and needs the certificate of qualification required by New York Insurance Law Section 1111.
The clerk’s office has asked Trump’s lawyers for corrections to the bond.
Knight Specialty is not licensed in New York to issue surety bonds, and Lederman noted the company’s absence from the Department of Financial Services database. However, the company contends it is nevertheless authorized to issue the bond.
CBS claims the company also does not appear to meet a restriction under New York insurance law barring companies from putting more than 10% of its capital at risk.
Amit Shah, the president of Knight Insurance, said the restriction does not apply. He said Knight has over $1 billion in equity.
“Knight Specialty Insurance Company is not a New York domestic insurer, and New York surplus lines insurance laws do not regulate the solvency of non-New York excess lines insurers,” he said. “So we don’t believe we need the 10% surplus.”
The billionaire behind Trump’s bond is Don Hankey, Knight Insurance’s chairman, who owns the subsidiary that wrote the bond. Hankey said that Trump used “cash” as collateral for the bond, a total of $175 million. Amit Shah said he has been approved to issue bonds in New York.
James appears to be using technicalities to get Trump, and the media is helping her.
AM Best gave Knight Surety an A- excellent rating.
Subscribe to the Daily Newsletter
wpDiscuz
