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New York Attorney General Letitia James has officially called for the invalidation of a $175 million bond posted by former President Donald Trump.

This action stems from concerns about the financial backing of the bond, which is critical in delaying the payment of a substantial monetary judgment in a civil fraud case involving Trump and his top executives. The bond was underwritten by Knight Specialty Insurance Company, a firm that, according to state lawyers, lacks the necessary authorization to conduct such business in New York.

The state’s legal team has raised doubts about whether the insurance company possesses adequate funds to support the bond. In court filings, they argued that Knight Specialty Insurance’s total policyholder surplus barely exceeds $138 million, a figure significantly lower than the bond amount. This discrepancy has prompted the Attorney General’s office to question the legitimacy of the bond’s coverage, suggesting that it exceeds the insurer’s capacity for risk under state law.

Further complicating matters, the bond, meant to cover a $464 million judgment against Trump and his associates for manipulating financial statements, was recently reduced from the total judgment amount after Trump’s lawyers claimed that securing such a sum would be unfeasible. Despite this reduction, the attorney general’s filings argue that the bond is still not sufficiently backed by ascertainable assets, a crucial factor that could influence the court’s upcoming decisions.

The court is scheduled to address these issues in a hearing set for Monday. This meeting coincides with the start of Trump’s separate criminal trial in New York.