Re: NY vs. Trump - Financial Fraud Case
Posted: Fri Apr 19, 2024 10:00 pm
Sounds like Trump’s bond company has a number of issues and can’t really guarantee his bond:
https://thehill.com/regulation/court-ba ... ffect/amp/
State lawyers argued Knight is a “small insurer that is not authorized to write business in New York” and, until Trump, had “never before written a surety bond in New York.”
The company has a total policyholder surplus of just $138 million, the filing says. Under New York state law, companies like Knight can’t expose themselves to liabilities — like a bond — or any potential loss greater than 10 percent of their surplus.
“Based on KSIC’s policyholder surplus in its most recent annual financial statement of $138,441,671, the limitation of loss on any one risk that KSIC is permitted to write is $13.8 million,” the lawyers wrote. “The face amount of the bond exceeds this limitation by $161.2 million.”
https://thehill.com/regulation/court-ba ... ffect/amp/
State lawyers argued Knight is a “small insurer that is not authorized to write business in New York” and, until Trump, had “never before written a surety bond in New York.”
The company has a total policyholder surplus of just $138 million, the filing says. Under New York state law, companies like Knight can’t expose themselves to liabilities — like a bond — or any potential loss greater than 10 percent of their surplus.
“Based on KSIC’s policyholder surplus in its most recent annual financial statement of $138,441,671, the limitation of loss on any one risk that KSIC is permitted to write is $13.8 million,” the lawyers wrote. “The face amount of the bond exceeds this limitation by $161.2 million.”