In a bizarre move, team Donald Trump has sought a Manhattan federal judge’s permission to designate the $5 million owed to writer E. Jean Carroll in a defamation case as cash rather than a bond.
Surety experts told the publication that the only real benefit behind this highly uncommon move is the savings of a 1% bond premium.
Mike Lapre, Senior Vice President in the surety division of NFP, a global property and casualty broker, said, “The only thing I could see as a reason for this is they don’t want to spend the extra $55,000” to pay for the bond.
“I guarantee there are companies that would write this bond for him,” Lapre said.
However, he pointed out that if the appeal were to extend for a year, the 1% bond premium would need to be renewed, resulting in Trump’s expenses amounting to $110,000. “He may just be trying to save a little money that way.”
Trump attorney Joe Tacopina, who filed the request on behalf of the ex-president, said his law firm, Tacopina Seigel & DeOreo, is currently holding the $5,550,000 in trust, “which is 111% of the judgment amount and is consistent with the traditional security percentage of supersedeas bonds.”
Tacopina said his company is ready to “promptly” transfer that money to the court once the judge approves the cash-not-bond arrangement.
Image and article originally from www.benzinga.com. Read the original article here.