This follows an application made earlier this year to the Civil Division of the High Court to seize the assets of Aitutaki Village Ltd, a company owned by Bishop.
The application was made by Solicitor General David James under the seldom-used Proceeds of Crime Act 2003.
James also oversaw the entire proceedings of the newly-agreed settlement, approved by him on October 26, and also signed by Bishop’s lawyer, Brian Mason.
The settlement terms mean Bishop will have to pay $5,000 a month, starting on December 1.
James told CINews he was unable to provide specific details on the steps of the settlement negotiation process.
Bishop was jailed in December 2016 on a charge of corruption as a Minister of the Crown. His sentencing by the Court of Appeal followed a two-year investigation into his dealings with Chinese fishing company Leun Thai when he was Ministry of Marine Resources minister.
Bishop and business partner Thomas Koteka received a loan from Leun Thai subsidiary Century Finance. Of this, $250,000 was invested by Koteka so he and Bishop could buy Samade Resort in Aitutaki for $1 million. Much of the evidence centred around the circumstances of the loan.
Bishop’s trial took almost three weeks, and the jury took more than four hours to reach a verdict.
Bishop returned home to Aitutaki in June of this year to a huge welcome from local residents.