The Daily Beast goes into more details on Trump’s so called $175 million “bond” from Knight Speciality Insurance Company. Besides going over that fact that Knight Speciality Insurance Company is not licensed in the state of New York, the legal document submitted doesn’t provide a guarantee to pay the $464 million judgement nor does it say it that Knight Specialty will even pay the $175 million. Instead, it says that Trump will pay!
Perhaps even more troubling, the legal document from Knight Specialty Insurance Company doesn’t actually promise it will pay the money if the former president loses his $464 million bank fraud case on appeal. Instead, it says Trump will pay, negating the whole point of an insurance company guarantee, according to three legal and bond experts who reviewed the contract for The Daily Beast…
Buried in the typical legalese of the contract is the phrase: “Knight Specialty Insurance Company… does hereby… undertake that if the judgment… is dismissed… Donald J. Trump… shall pay… the sum directed.”
In other words: If Trump loses the case, Trump will pay. But that’s no different than Trump’s obligation before the bond was issued.
“Getting into the weeds, the company undertakes that Trump will pay,” said one bond industry source who declined to be publicly identified for this story.
This is NOT how a bond is supposed to work! The insurer pays out if the judgement is upheld by the appellate court, and it’s up to the insurer to get the money from Trump.
The article is also very thorough on how Knight Specialty Insurance Company really has not stated if they can afford to issue this so called “bond” to Trump. And once again, Knight Insurance is run by a guy who has ripped off customers with high interest loans on cars wiht many of those cars repossesed illegally according to their customers. I’m no legal or financial expert, but this screams of a scam.
What if anything will the courts in NY do about this? Beats me. I frankly do not trust the NY courts after the appellate court decided the full amount of the judgement against Trump was too high and cut his bond down to $175 million. But they would be fools if they accepted this bond from Knight Specialty Insurance Company.