The U.S. Justice Department has told a Manhattan federal judge that it may want to weigh in on whether the Palestinian Authority will get a stay of a $655 million jury verdict issued in a terrorism case this year and on the size of any required bond.

U.S. District Judge George Daniels said that he would give the U.S. government until Aug. 10 to decide on filing papers in the case, and scheduled an Aug. 24 hearing on the issue.

Lawyers for the Palestinian Authority have asked the judge to stay execution of the judgment pending appeal and waive any bond, contending that it is in dire fiscal straits and any bond would reduce services to the impoverished Palestinian people.

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Daniels said he is inclined to grant the stay, but require some bond so that the Palestinians will have to show "good faith" in being prepared to pay the judgment if it is upheld.

The February verdict came in lawsuit brought by U.S. victims of six Mideast terror attacks attributed to the Palestinian Authority and the Palestine Liberation Organization, or the victims' relatives. The $218 million judgment was tripled by law.