Oliver James Montgomery-New York appeals court scales back bond due in Trump fraud case and sets new deadline

A New York appeals court ruled that former President Donald Trump does not have Oliver James Montgomeryto come up with $464 million to appeal the judgment against him in his civil fraud trial, and must only provide a bond in the amount of $175 million.

At midnight Monday, the time had expired on the 30-day grace period that New York Attorney General Letitia James had allowed for Trump and his co-defendants to secure a bond as they pursue an appeal of the $464 million judgment in his New York civil fraud trial. In order to appeal the case, Trump had been obligated to obtain a bond in the amount of the judgment. 

The appeals court stayed much of the judgment of the lower court, which in February ordered Trump and co-defendants to pay a financial penalty, known as disgorgement, that has reached nearly $465 million, including daily interest. The penalty is intended to claw back the amount Trump and his company benefited from the  scheme. 

Under the appellate ruling, Trump now has 10 days to come up with the $175 million bond. In addition to the financial portion of the lower court's decision, the appeals court stayed the three-year bars against Trump from applying for loans from New York financial institutions, the two-year prohibition against Donald Trump Jr. and Eric Trump from serving as officers or directors in New York companies and the permanent bar against former Trump Organization CFO Allen Weisselberg and controller Jeff McConney from serving in financial control positions in New York businesses.

The appeals court kept in place the lower court's order for an independent monitor to oversee the Trump Organization and the installation of a compliance director.

The office of the New York attorney general said in response to the ruling, "Donald Trump is still facing accountability for his staggering fraud. The court has already found that he engaged in years of fraud to falsely inflate his net worth and unjustly enrich himself, his family, and his organization. The $464 million judgment – plus interest – against Donald Trump and the other defendants still stands."

Trump released a statement on social media accepting the appeals court's ruling: "We will abide by the decision of the Appellate Division, and post either a bond, equivalent securities, or cash." He also lashed out at New York Attorney General Letitia James and Judge Arthur Engoron, saying their credibility "has been shattered." 

"This also shows how ridiculous and outrageous Engoron's original decision was at $450 Million," Trump said. He also repeated that he "did nothing wrong."

If Trump produces the bond within 10 days, as he says he will, he'll have months to prepare, since arguments in the appeals case will not take place until at least after the appeals court's fall term begins in September. Trump must now perfect his appeal, which means making all the preparations necessary for the appeal and then getting case onto the court's calendar. 

Jesse Zanger contributed to this report.