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Credit insurer Hankey in Los Angeles

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Ringo Chiu / ZUMA Press / IMAGO

Donald Trump has posted $175 million bail in his New York fraud trial. This means the state cannot collect its debts of more than $454 million. Trump is temporarily holding onto his assets to pay off debts while he appeals, a court filing said.

A New York appeals court had given the former president ten days to post bail. Last month, a panel of judges agreed to reduce the amount needed to stop enforcement.

The company that provided the deposit is called Knight Specialty Insurance and is part of the Knight Insurance Group. That company's chairman, billionaire Don Hankey, told the Associated Press (AP) that both cash and bonds were used as collateral for Trump's appeal bond.

"That's our job at Knight Insurance, and we're happy to do it for anyone who needs a bond," Hankey said. He is best known in the business world for making high-risk, high-interest loans to car buyers with poor credit. Hankey told AP he has never met or spoken to Trump. However, Hankey told Forbes his company actively approached Trump to offer him the bond. Hankey was also involved in financing mortgages for Trump Tower in New York.

30 bail insurers had previously rejected Trump

Trump is fighting in court to overturn a judge's Feb. 16 ruling that he lied about his wealth while building the real estate empire that propelled him to fame and the presidency. The trial focused on how Trump's assets were valued in the financial reports that went to banks and insurance companies for loans and business.

The bail that Trump is now posting in court is a placeholder intended to guarantee that Trump will be able to pay if the verdict is confirmed. In this case, the presumptive Republican presidential candidate must pay the state the entire amount, which grows with daily interest. If Trump wins, he won't have to pay the state anything and will get back the money he has now deposited.

Trump denies any wrongdoing and claims the statements downplayed his assets, came with disclaimers and were not taken at face value by the institutions that lent to him or insured him.

Trump's lawyers had told the appeals court that more than 30 bail bondsmen were unwilling to accept collateral for a bond worth more than $454 million. Most bail insurers would require collateral of 120 percent of the amount owed, it said. Recent legal debts have drained a significant portion of Trump's cash reserves.

lpz/AP