The Daily Beast reports that Knight Specialty Insurance Company appears to lack the surplus listed on its financial statements to meet the capital requirements needed to post the bond Donald Trump needs to appeal his civil fraud penalty.
New York law limits the amount a surety company can post on a single bond to 10% of its total “capital and surplus.”
But the bonds posted for Trump exceed this standard. Trump bonds are 127% of the company's dedicated reserves, raising concerns about excessive leverage.