"I heard Mr. John W. Edwards tell me on the phone that he checked with the campaign lawyers and that this was legal," said Cheri Young, who was on the witness stand for a second day of questioning by prosecutors.
Cheri Young also said during her testimony in Edward's corruption trial that she had her doubts about taking the money, but that she did it anyway to help the campaign.
She also said she took the money because if Edwards' affair was exposed during the campaign, her job would be in jeopardy.
Cheri Young is the wife of Edwards' former aide, Andrew Young.
The Associated Press contributed to this report.