FOR ALL YOUR SURETY BOND NEEDS.
These surety bonds are general for all states.
Learn more about lost instrument bonds, and apply today. Absolute Surety offers surety bonds nationwide through a convenient online application system.
The main reason that people use financial instruments like cashier’s checks, car titles, or stock certificates is that they are a tangible proof of ownership that can be replaced if need be. You’re probably familiar with the process for replacing a missing car title through the state’s motor vehicle agency by purchasing a lost title bond. There’s a similar process for replacing other lost financial instruments by purchasing a lost instrument bond.
If you have lost a cashier’s check, stock certificate, property deed, or similar financial instrument, your financial institution will require you to purchase a lost instrument surety bond in order to claim ownership of the missing assets. The bond protects the financial institution so that it won’t have to honor the original instrument if it shows up at some point after you have been given a duplicate.
There are three parties to a lost instrument bond agreement:
The bond protects the bank against the fraudulent redemption of a lost or stolen financial instrument. In order to purchase a lost instrument bond, you’ll need to submit a statement with your application describing the circumstances surrounding the loss of the financial instrument. Thirty days must have elapsed since the loss of the instrument before you can obtain a bond.
The required amount of the bond is determined by the financial institution based on the value of the missing instrument. It is often set at 1.5 times the original amount. Lost instrument bonds in any amount up to $5,000 typically costs a flat fee of $100. Every $1,000 increase in bond value generally adds about $20 to the annual bond premium. If you need a lost instrument bond of more than $10,000, you’ll have to go through the surety’s underwriting process, which will require a credit check and financial information.
Should the original “lost” instrument be found and presented to the issuing financial institution for cashing after the principle has already used the duplicate, the principal is entirely responsible. In purchasing the bond, the principal signs an indemnity agreement to reimburse the surety in full for any claims paid out on the bond to the financial institution.
If you lost a valuable financial instrument 30 days or more ago, we’ll gladly help you obtain a lost instrument bond so you can get a replacement from your financial institution.
