New York Attorney General Letitia James' challenge to the $175 million bond ruling in former President Donald Trump's civil case has been rejected by a New York judge.

Former President Trump’s $175 million bond judgment stemming from his non-jury civil trial will stand, a New York judge ruled Monday after New York Attorney General Letitia James attempted to invalidate it. 

Lawyers for James on Monday argued that the court should void Trump’s slashed judgment of $175 million in his non-jury civil fraud trial. James questioned whether the company that posted the massive bond, Knight Specialty Insurance, could actually pay the bond if needed. 

The court, though, ruled against James, deciding that the bond will stand. 

There are conditions set on the bond, which is held by Knight Insurance.

The court decided the $175 million needs to be in cash — not in mutual funds or securities where the value can fluctuate. The court said Knight Insurance cannot trade or move the money, but said they will retain control of the account. 

The court also ruled that Knight Insurance must provide a monthly financial statement to James showing the $175 million in cash, and decided that the agreement cannot change without approval from the court. 

Previously on RedState: Dershowitz: Biased New York Times/TikTok Jury Bad for Trump, 'Best He's Likely to Do Is a Hung Jury' 

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AG James had challenged the appeals court's reduction of the bond from $450 million to $175 million and also questioned Knight Insurance's legal status in New York (the company is based in Los Angeles).

While appealing the verdict earlier this month, Trump posted the bond—which had been substantially reduced in a separate appeal—with the backing of California-based Knight Specialty Insurance Company (KSIC). James quickly objected, noting that KSIC was not licensed in New York and raising questions about the "sufficiency" of the bond.

Trump and KSIC filed a motion backed by several documents that they said showed the bond was financially sound and guaranteed by the former president's cash earlier this week while arguing that James had wrongly objected to the bond and urging Engoron to make her pay associated legal fees.

President Trump has and continues to deny all of the allegations against him in this case.

A final ruling on the bond amount is expected soon. If the reduction is overturned, former President Trump would be liable for the original $450 million bond. This presents the possibility of President Trump's New York real estate holdings being seized by the court to satisfy the bond.

In Trump's Manhattan fraud trial, a recent survey shows only 1 in 3 Americans think President Trump committed any wrongdoing. While the poll did not encompass the civil case, it may well be indicative of how the public views the many legal cases brought against the former President; as of this writing Trump holds a narrow lead over incumbent President Biden in the RealClearPolitics average of nationwide polling as well as in the RealClearPolitics aggregates of battleground state polling. So far Trump's fending off the legal challenge doesn't seem to be swinging those numbers to any great degree, although what happens in November remains anyone's guess.

This is a developing story. RedState will continue to monitor this case and update you as events warrant.