EXHIBIT 99.2
 
                         TRUMP ATLANTIC CITY ASSOCIATES
                     TRUMP ATLANTIC CITY FUNDING III, INC.
 
                                 EXCHANGE OFFER
                               TO HOLDERS OF ITS
           11 1/4% FIRST MORTGAGE NOTES (TAC III) DUE 2006, SERIES A
 
                         NOTICE OF GUARANTEED DELIVERY
 
    As set forth in the Prospectus dated       , 1998 (the "Prospectus") of
Trump Atlantic City Associates ("Trump AC"), Trump Atlantic City Funding III,
Inc. ("Funding III" and, together with Trump AC, the "Issuers") and all of the
subsidiaries of the Issuers under "The Exchange Offer--How to Tender" and in the
Letter of Transmittal (the "Letter of Transmittal") relating to the offer (the
"Exchange Offer") by the Issuers to exchange up to $25,000,000 in principal
amount of its 11 1/4% First Mortgage Notes (TAC III) due 2006, Series A issued
and sold in a transaction exempt from registration under the Securities Act of
1933, as amended (the "Original Notes"), for $25,000,000 in principal amount of
its 11 1/4% First Mortgage Notes (TAC III) due 2006, Series B (the "Exchange
Notes"), this form or one substantially equivalent hereto must be used to accept
the Exchange Offer of the Issuers if: (i) certificates for the Original Notes
are not immediately available; or (ii) time will not permit all required
documents to reach the Exchange Agent (as defined below) on or prior to the
Expiration Date (as defined in the Prospectus) of the Exchange Offer. Such form
may be delivered by hand or transmitted by telegram, telex, facsimile
transmission or letter to the Exchange Agent.
 
    TO: U.S. BANK NATIONAL ASSOCIATION (the "Exchange Agent")
 
                                 BY FACSIMILE:
                                 (612) 244-1537
                           Attention: Bernice Chapman
 
                             CONFIRM BY TELEPHONE:
                                 (612) 244-1572
 
                        BY REGISTERED OR CERTIFIED MAIL:
                         U.S. Bank National Association
                              180 East 5th Street
                           St. Paul, Minnesota 55101
                                Bernice Chapman
 
                           BY HAND/OVERNIGHT COURIER:
 
                         U.S. Bank National Association
                              180 East 5th Street
                           St. Paul, Minnesota 55101
                                Bernice Chapman
 
                                       OR
 
                              First Trust New York
                                100 Wall Street
                            Bond Window, 20th Floor
                            New York, New York 10005
 
                DELIVERY OF THIS INSTRUMENT TO AN ADDRESS OTHER THAN
            AS SET FORTH ABOVE OR TRANSMITTAL OF THIS INSTRUMENT TO
              A FACSIMILE OR TELEX NUMBER OTHER THAN AS SET FORTH
                  ABOVE DOES NOT CONSTITUTE A VALID DELIVERY.

Ladies and Gentlemen:
 
    The undersigned hereby tenders to the Issuers, upon the terms and conditions
set forth in the Prospectus and the Letter of Transmittal (which together
constitute the "Exchange Offer"), receipt of which are hereby acknowledged, the
principal amount of Original Notes set forth below pursuant to the guaranteed
delivery procedure described in the Prospectus and the Letter of Transmittal.
 

                                   
                                                   SIGN HERE
 
Principal Amount of Original Notes    Signature(s)
  Tendered
 
Certificate Nos.                      Please Print the Following
  (if available)                      Information
 
                                      Name(s)
 
                                      Address
 
Total Principal Amount                Area Code and Tel. No(s).
  Represented by Original Notes
  Certificate(s)
 
Account Number
 
Dated:            , 1998

 
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                                   GUARANTEE
 
    The undersigned, a member of a recognized signature guarantee medallion
program within the meaning of Rule 17A(d)-15 under the Securities Exchange Act
of 1934, as amended, hereby guarantees that delivery to the Exchange Agent of
certificates tendered hereby, in proper form for transfer, or delivery of such
certificates pursuant to the procedure for book-entry transfer, in either case
with delivery of a properly completed and duly executed Letter of Transmittal
(or facsimile thereof) and any other required documents, is being made within
five trading days after the date of execution of a Notice of Guaranteed Delivery
of the above-named person.
 
                                        Name of Firm
 
                                        Authorized Signature
 
                                        Number and Street or P.O. Box
 
                                   City                          State       Zip
                                        Code
 
                                        Area Code and Tel. No.
 
Dated: ____________, 1998
 
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