Lost Document Bonds
What Are Lost Document Bonds?
Lost Document Bonds, also known as Lost Securities Bond or Lost Instrument Bonds, are required by private businesses, banks and other financial institutions when a person or corporation has accidently misplaced, lost or destroyed an original document that proves ownership. Examples of such can be:
- Certificated cheques
- Life insurance policies
- Stock certificates
- Bank Drafts
- Common or preferred stocks
- Federal, provincial, municipal or corporate bonds
- Lost savings bonds
- Lost document certified cheques
Before issuing a replacement, financial institutions may require legal protection should the original and replacement still exit, in order to avoid the possibility of both being cashed, known as Double Redemption, either by accident or fraudulently.
The Lost Instrument Bond provides assurance that the issuer of the replacement security will be legally protected from economic loss should the lost document turn up later. The Lost Securities Bond allows the issuing corporation or entity to provide a replacement certificate with the documents and piece-of-mind that they are legally protected.
Types Of Lost Document Bonds
There are two types of lost document bonds or lost securities bonds:
- Open Penalty: are used for replacement certificates of fluctuating value such as common shares.
- Fixed Penalty: are used for replacement certificates of fixed value such as corporate debentures.
Applying For Lost Document Bonds? Have Questions?
Contact our surety experts at 1-877-213-4545 or firstname.lastname@example.org
Ai Surety Bonding – Affinity Insurance Inc. is the market leader in Canada for surety and related products. Our surety experts have the knowledge and expertise in delivering Fiduciary, Customs and Excise, License and Permit and Lost Instrument bonds.