An appeals court in New York decided Monday to suspend the former president’s debt collection

Donald

Trump’s civil fraud judgment of $454 million if he comes up with $175 million within 10 days.

Doing so would halt collections and prevent the state from seizing the presumptive Republican presidential nominee’s assets while he appeals.

The development came just before New York Atty. General Letitia James was expected to make efforts to collect the judgment.

Messages seeking comment were sent to James’ office and Trump’s lawyers.

Trump’s lawyers had argued before a state appeals court to halt the collection, claiming it was virtually impossible to get an insurer to sign a bond for such a large amount.

The ruling was made by the state’s interim appellate court, the Appellate Division of the state Court of Appeals, where Trump is fighting to overturn a judge on Feb. 16, finding that he lied about his wealth while growing the real estate empire that launched him to stardom. and the presidency.

James, a Democrat, told ABC News last month that if Trump doesn’t have the money to pay, she would seek to seize his assets and was “prepared to make sure the judgment is paid.”

She gave no details about the process or specified which holdings she was referring to, and her office has recently declined to discuss her plans. In the meantime, it has notified the judgment, a technical step towards possible recovery.

Trump is unable to post a bond of more than $450 million in a civil fraud case, lawyers say

When Trump arrived at another New York court on Monday for a separate hearing in his criminal hush money case, he did not respond to a reporter’s question about whether he had been granted bail. Earlier Monday, he railed against the civil judgment and the possibility that James would try to enforce it in social media posts.

The ex-president viewed the case as a plot by the Democrats, claiming they were trying to take his money to starve his 2024 campaign.

I planned to use a lot of that hard-earned money to run for president. They don’t want me to do that election interference! he wrote on his Truth Social platform. Referring to his belongings as my babies, he became wary of the idea that he would be forced to sell them or have them confiscated.

Seizing assets is a common legal option when someone does not have the money to pay a civil penalty. In Trump’s case, potential targets could include his Trump Tower penthouse, airplanes, Wall Street office building or golf courses.

The attorney general could also go after his bank and investment accounts. Trump claimed on social media on Friday that he has nearly $500 million in cash but plans to use much of it during his presidential campaign. He has accused James and Judge Arthur Engoron, who is also a Democrat, of taking the money so I can’t use it for the campaign.

Donald Trump is appealing the $454 million verdict in a civil fraud case in New York

One possibility would be for James’ office to go through legal proceedings to have local law enforcement seize property and then sell it. But that’s a complicated prospect in Trump’s case, noted Stewart Sterk, a real estate law professor at the Cardozo School. of the law.

Finding buyers for assets of this size is something that doesn’t happen overnight, he said, noting that in any regular auction the chance that people can bid up to the real value of the property is quite small .

Trump’s guilt stems from a months-long civil trial last fall over state allegations that he, his company and top executives vastly inflated his wealth in financial statements, defrauding bankers and insurers who did business with him. For years, the statements valued his penthouse as if it were, for example, almost three times its actual size.

Trump and his co-defendants denied any wrongdoing, saying the statements actually downgraded his fortunes, contained disclaimers and were not taken at face value by the institutions that loaned or insured him. According to him, the discrepancy between the penthouses was simply a mistake by subordinates.

New York’s attorney general says she will seize Trump’s property if he can’t pay $454 million fine

Engoron sided with the attorney general and ordered Trump to pay $355 million, plus interest that accrues daily. Some co-defendants, including his sons and company vice presidents, Donald Trump Jr. and Eric Trump, were ordered to pay much smaller amounts.

Under New York law, filing an appeal generally does not stay enforcement of a judgment. But there is an automatic pause if the person or entity posts a bond that covers what is owed.

The ex-president’s lawyers have said it is impossible for him to do that. They said the insurers wanted 120% of the judgment and would not accept real estate as collateral. That would mean tying up more than $557 million in cash, stock and other liquid assets, leaving Trump’s company with some left over to run the business, his lawyers say.

Trump’s lawyers have asked an appeals court to freeze the debt collection without him posting bond. The Public Prosecution Service has objected.

Jennifer Peltz and Michael R. Sisak write for the Associated Press.