Court rejects Trump's request to postpone payment of $454 million penalty, asset seizure looms

(Patria) - Donald Trump must post a bond to cover the full $454 million penalty while he appeals the verdict in his civil fraud trial in New York, the BBC reported.

Trump's lawyers had argued that he would "suffer irreparable harm" if forced to pay the entire sum and was willing to pay $100 million. However, the judge lifted a three-year ban on him seeking loans from New York banks, which could help him secure the money.

The New York Attorney General has vowed to seize his assets if he fails to pay. An order issued on Wednesday requires Trump to pay the full amount in the coming weeks, due to misrepresenting the value of his assets. In a filing on Wednesday, Trump's lawyers stated that the "excessive and punitive amount of the judgment combined with the unlawful and unconstitutional general prohibition on borrowing transactions would make it impossible to secure and post a full bond".

They also said that a $100 million bond, combined with Trump's "vast" real estate holdings and oversight by a court monitor for the Trump Organization, should be sufficient to secure the full sum. But their proposal, which was opposed by Attorney General Letitia James, failed to convince Appellate Division Justice Anil Singh.

However, Justice Singh did agree to pause the part of the judgment that prohibits Trump and his sons from doing business in the state, leaving them at the helm of the Trump Organization.

The penalty will continue to accrue interest of at least $112,000 per day if he refuses to pay. James had asked the appellate court to reject Trump's request.

"There is no merit to the defendants' claim that a full bond or deposit is unnecessary because they are willing to post a partial undertaking of less than a quarter of the judgment amount," the Attorney General's office stated in its filing.

"The defendants almost admit that Mr. Trump does not have sufficient liquid assets to satisfy the judgment. The defendants would have to 'raise capital' to do so. These are precisely the circumstances for which a full bond or deposit is necessary," it added.

Last week, James told ABC News: "If he does not have the funds to pay the judgment, we will seek mechanisms for the enforcement of the judgment in court and we will ask the judge to seize his assets."

According to Forbes estimates, Trump is worth around $2.6 billion. While it is unclear how much cash he has on hand, he testified last year that he had $400 million in liquid assets.

In addition to paying the business fraud penalties, the former president was also ordered to pay $83 million last month after losing a defamation case brought by E Jean Carroll, a woman he was found to have sexually abused.