What Happens If Trump Can’t Get a Half-Billion-Dollar Bond?

It’s crunchtime for Donald J. Trump.

By Monday, March 25, the former president must secure an appeal bond for roughly half a billion dollars in his civil fraud case in New York, and his ability to do so was called into question this week.

In a court filing, Mr. Trump’s lawyers revealed that he had been unable to secure an appeal bond despite “diligent efforts” that included approaching about 30 bond companies.

While Mr. Trump this month managed to post a $91.6 million bond in his defamation case against the writer E. Jean Carroll, securing the deal at the 11th hour from a large insurance company, he lacks the assets needed to secure the far bigger guarantee for the fraud case.

If he cannot produce the bond in time, Mr. Trump faces the possibility of financial disaster and humiliation. New York’s attorney general, Letitia James, who brought the fraud case, would be entitled to collect the $454 million and could move to freeze some of Mr. Trump’s bank accounts.

She could also seek to seize some of his New York properties, and public records show that Ms. James has formally posted the judgment in Westchester County, a preliminary step needed to stake a claim to Mr. Trump’s private estate and golf club there. Yet any effort to seize property would most likely trigger a lengthy court fight with an uncertain result.

Mr. Trump’s money problems spread well beyond New York. As the presumptive Republican nominee for president, he is facing increased pressure to raise money to fund his campaign, lagging behind his opponent, President Biden, in fund-raising.

In recent days, The New York Times has received many questions about Mr. Trump’s financial woes. Here are answers to several:

What was Trump accused of?

Ms. James took Mr. Trump, his company and his adult sons to trial last fall, accusing them of fraudulently inflating the value of his golf clubs, office buildings and other properties to the tune of about $2 billion.

Mr. Trump exaggerated the property values, and in turn his own net worth, to obtain favorable loan terms from banks and insurers, according to Ms. James.

At the trial, which lasted months, Ms. James’s lawyers showed that Mr. Trump’s company had ignored appraisals and manipulated numbers to sometimes absurd heights.

For example, the former president had valued his triplex apartment in Trump Tower on Fifth Avenue as if it were 30,000 square feet for years. It was actually 10,996 square feet.

Mr. Trump lost the trial. The judge overseeing the case — there was no jury — ruled in favor of Ms. James.

How was he punished?

The judge, Arthur F. Engoron, came down hard on Mr. Trump, imposing a judgment of $355 million plus interest, amounting to $454 million.

The judge also imposed a range of penalties that could curb Mr. Trump’s influence over his family business, barring him from serving as a top executive at a New York company for three years.

What comes next?

Mr. Trump has appealed the judgment.

Although he does not have to pay Ms. James’s office the $454 million while he appeals, he is on the hook to either cut a check to the New York State Court system for the full amount himself, or, more likely, obtain an appeal bond.

What is an appeal bond?

In this case, it would be a document in which a bond company promises to pay the $454 million judgment, plus interest, if Mr. Trump were to lose his appeal and fails to pay.

To obtain a bond of such size, Mr. Trump would need to pledge a significant amount of collateral to the bond company — about $557 million, his lawyers said — including as much cash as possible, as well as any stocks and bonds he could sell quickly.

He would also owe the bond company a fee that could amount to nearly $20 million.

Does he have enough cash to obtain one?

Short answer: No.

A recent New York Times analysis found that Mr. Trump had more than $350 million in cash as well as stocks and bonds, far short of the $557 million he would need to post in collateral.

In a court filing on Monday, Mr. Trump’s lawyers said they had contacted more than 30 bond companies, and none had agreed to do a deal.

But I thought he was a billionaire?

While Mr. Trump has long bragged about his wealth, his true financial position remains something of a mystery. And most of his wealth is tied up in his real estate holdings, which bond companies don’t typically accept as collateral.

He also has less liquid collateral available today than he did even a few weeks ago. Earlier this month, Mr. Trump had to post a $91.6 million bond in the defamation case he lost to E. Jean Carroll. For that, he most likely had to pledge more than $100 million in collateral to Chubb, the insurance company that provided the bond. That money cannot be used as collateral for a second bond.

What is the deadline for the bond?

Mr. Trump…