Lost Instrument Bond -
A lost instrument bond is a surety bond that is a financial guarantee to a bank or lender when they are unable to find a financial instrument. Also known as a lost note bond, these bonds play an important role. They protect the transfer agent from any liability that would occur in the event that the lost securities were to reappear. Learn more below, or request a quote today through our convenient online system.
How Does It Work?
When a person or company loses a stock certificate, savings bank book, certified check or similar document, a lost instrument bond can save them from a financial loss. The issuer will not deliver a duplicate of the financial document until the person provides this type of surety bond.
The purpose of the bond is to guarantee that the principal (the company who purchases the bond) will return the original financial document to the surety company or obligee for proper disposal. With the bond in place, the issuer of the replacement security will not have to incur a financial loss.
Common types of lost financial documents include:
- Certified or Cashier Checks
- Certificates of Deposit
- Stock Certificates
- Savings Passbook
- Real Estate Certificates
There are generally two types of these bonds:
- Fixed Penalty bonds are needed when the items lost are certified checks, certificates of deposits, or any items with a fixed value.
- Open Penalty bonds are needed when the items lost are stock certificates or any other items whose market value fluctuates.
Rates and terms:
Companies provide lost instrument bond services for a term of one-year, which can later be renewed for multiple years.
The premium is 1% of the bond amount for professional lenders and 2% of the bond amount for all other applicants.
Get A Quote Today
At Surety Bond Professionals, we are the best lost instrument bond service provider in Massachusetts and nationwide. We offer a quick and easy online quoting process. We provide the best knowledge and service for lost securities bonds and competitive rates for all surety bonds across the country. Apply now!