You have the right idea. Obviously they should have made him pay the full amount. I think they know he literally doesn’t have it.
Remember, the state has a retired judge watching his bank accounts for a while now. They know what he can pay. $175 million in cash is better than them seizing his property quickly because that process is actually very slow.
For everyone who thinks the state should just “take Trump Tower”, do you understand that’s not something they’re good at? They would need to find a buyer. You can’t just get a buyer for such a large building in a few days. They really would prefer cash for at least part of the fine.
The building isn’t going anywhere and this doesn’t affect the judgement.