Trump Says He Might Have to Sell Properties to Pay $454 Million Penalty

Much of Donald J. Trump’s wealth is tied up in real estate, which is difficult to use as collateral.

Donald J. Trump offered a New York appeals court on Wednesday a bond of only $100 million to pause the more than $450 million judgment he faces in his civil fraud case, saying that he might need to sell some of his properties unless he gets relief.

It was a stunning acknowledgment that Mr. Trump, who is racing the clock to either secure a bond from a company or produce the full amount himself, lacks the resources to do so. Without a bond, the New York attorney general’s office, which brought the fraud case, could seek to collect from Mr. Trump at any moment.

In a filing with the appeals court, Mr. Trump’s lawyers also asked to delay a wide range of other punishments that the trial judge in the fraud case, Arthur F. Engoron, levied in a decision this month. They include a prohibition on obtaining a loan from a New York bank for three years and a ban on running a company in the state during that same period.

One appellate court judge was hearing the request from Mr. Trump on Wednesday afternoon and was expected to issue a decision by the end of the day. If the judge were to grant the pause, it would be only temporary; Mr. Trump would still have to persuade a larger panel of appellate judges to keep the judgment on hold.

In seeking relief, Mr. Trump’s lawyers disclosed that he would be unable to secure a bond for the full $454 million, raising the prospect that he might soon default on the judgment if the appeals court denies his request.

Justice Engoron’s decision to bar Mr. Trump from obtaining new loans from New York banks further constrains his ability to either produce the money himself or have enough cash to pledge as collateral for a bond, they argued. Under New York law, a defendant also owes 9 percent interest to the plaintiff until the judgment is paid or the appeal resolved, meaning a full bond in this case might reach $500 million or more.

If the appeals court denies the request, Mr. Trump’s lawyers warned, he likely would have to sell some New York properties “under exigent circumstances,” in what would be a punishing blow to the former president.

“The exorbitant and punitive amount of the judgment coupled with an unlawful and unconstitutional blanket prohibition on lending transactions would make it impossible to secure and post a complete bond,” the lawyers wrote.

Mr. Trump might eventually be able to secure a bigger bond. His stake in Trump Media & Technology Group, his social media company, could be worth up to $4 billion after a long-delayed merger is final this year.

Posting a bond that the appeals court accepts would prevent the attorney general, Letitia James, from collecting the judgment until Mr. Trump’s appeal is resolved. Without a bond or pause from the court, Ms. James can seize Mr. Trump’s bank accounts and potentially take control of his New York properties. In its own filing, Ms. James’s office asked the appeals court to deny Mr. Trump’s request.

“There is no merit to defendants’ contention that a full bond or deposit is unnecessary because they are willing to post a partial undertaking of less than a quarter of the judgment amount,” the attorney general’s office wrote. “Defendants all but concede that Mr. Trump has insufficient liquid assets to satisfy the judgment.”

Ms. James built her case on the accusation that Mr. Trump had fraudulently inflated his net worth by as much as $2 billion. He did so, Ms. James argued, to obtain favorable loans and other financial benefits.

Justice Engoron sided with Ms. James, concluding that Mr. Trump defrauded his lenders, who had expected him to maintain a certain net worth.

Mr. Trump’s net worth is largely derived from real estate, and the sum of the judgment in the civil fraud case and the $83.3 million judgment he faces from a defamation trial involving the writer E. Jean Carroll eclipses his stockpile of cash.

As of last year, Mr. Trump was sitting on more than $350 million in cash, as well as stocks and bonds he could sell in a hurry, according to a recent New York Times review of his financial records.

Mr. Trump appears to be struggling to line up a bond in the defamation case as well. He has until early next month to do so, and his lawyers recently asked a judge to either grant him more time or reduce the size of the bond.

A bond, in simplest terms, is a document that a company provides to the court on a defendant’s behalf. The bond company promises the court to cover a judgment if a defendant, in this case Mr. Trump, loses an appeal and fails to pay.

In exchange, Mr. Trump would have to pay the bond company a premium fee, typically anywhere from 1 to 3 percent of the judgment. Mr. Trump would also have to pledge collateral to the bond company, offering it cash, stocks and bonds.

Although each deal is different, companies offering appeal bonds might be unwilling to take Mr. Trump’s property as collateral, especially if a building already has a mortgage, experts said.