Since he left the presidential office, several lawsuits have hit Donald Trump from all corners. During his term in the White House, he used his executive power to block or delay all civil cases against him. However, losing to Biden meant losing that peer and the lawsuits came crashing in.
As expected, more lawsuits result in higher payouts or penalties if he loses. And he has been losing. As his New York civil fraud trial nears its end, Trump might have a great amount of money in financial penalties. If Justice Arthur Engoron rules against him in this case, two New York laws could affect him significantly.
The Daily Beast provided a report that explains Trump’s situation. The first rule that will affect the former president is that he might have to make the payout immediately. Unlike how some places allow one to spread the penalty payments over time, the judge will most likely ask him to pay everything at once.
Second, the report expects the judgment to come with two clauses. They predict that if they allow Trump to pay the penalty over time, there will be a 9% interest rate. This would make the total sum much larger as it looks like the fine will be in the tens of millions.
Furthermore, if Trump appeals the case, there could be an additional penalty of 10% to 20%. This will also make the money significantly larger, and people cannot help but wonder if Trump can afford another hit. He already has to pay $83.3 million to writer E. Jean Carroll for defamation after losing a case to her.
Trump has been clear about his financial situation, boasting about being a billionaire for many years. Even before he became president, many people knew of his wealth. However, how much cash ready cash does he actually have?
Can he afford to lose many more millions of dollars? Experts have varying opinions on the situation. N. Alex Hanley, an expert in corporate appeals, spoke to the Daily Beast that he may have a bit of trouble with these payments.
“It’s not often that there are cases like this where the person’s financial ability to pay is really in question. The subject of the case is whether the values of his properties are what he says they are. He may have some trouble with that,” he said.
According to various sources, Trump might find it very hard to find a lender willing to offer him millions if they fear they could have to wait until 2029 for any repayments to begin. Another expert, Neil Pedersen, agreed with this take. “Sureties require an indemnification agreement, a contract for the bond,” he said.
“Now, a concern would be: How do you perfect an indemnity of the person who could be the next sitting president? How do you take that person to court?” Hanley also said something quite similar to this while talking to The Beast.
“These companies are pretty conservative by nature,” Hanley said. “They’re not likely to get involved in something that they think will get dragged on for a long time — and potentially not get paid for it.
This has never been done, so it’s completely unprecedented.” Therefore, Trump might have bit off more than he can chew with these cases. The former president may be headed for financial ruin.
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