Lost Security Bonds
A Lost Security Bond is a type of surety bond required when an original security—such as a stock certificate, bond, or other financial instrument—has been lost, destroyed, or stolen. This bond protects the issuer from financial loss if the original security is later found and presented for payment.
Apply below, call our Commercial Department at 407-786-7770 or email us at [email protected]
Why You Need a Lost Security Bond
Lost Security Bonds are commonly required for:
- Individuals who lost stock or bond certificates
- Estates or executors handling lost securities
- Businesses replacing lost financial instruments
- Investors requesting replacement certificates
- Trusts or financial representatives
Bond requirements and amounts vary based on the value of the lost security and issuer policies.
Lost Security Bond FAQs
These are some of the most common questions asked about Lost Security Bonds and how they work.
A Lost Security Bond, sometimes referred to as a Lost Instrument Bond, guarantees that the issuer of a replacement security will be protected against claims, fraud, or double payment. The bond allows a replacement certificate or instrument to be issued while safeguarding against future legal or financial liability.
If a claim is made due to the original security resurfacing, the surety may pay damages up to the bond amount, and the principal is responsible for reimbursing the surety.
The cost of a Lost Security Bond is typically 1%–3% of the bond amount, depending on:
Value of the lost security
Applicant’s credit history
Risk level determined by the issuer
Length of bond term required
For example, a $100,000 Lost Security Bond may cost between $1,000 and $3,000.
Lost Security Bonds involve three parties:
Principal: The individual or entity requesting the replacement
Obligee: The issuer of the security
Surety: The bonding company
If the original security is later found and a claim is made, the surety compensates the issuer, and the principal reimburses the surety for any paid claims.
Lost Security Bonds are commonly required for:
- Individuals who lost stock or bond certificates
- Estates or executors handling lost securities
- Businesses replacing lost financial instruments
- Investors requesting replacement certificates
- Trusts or financial representatives
Bond requirements and amounts vary based on the value of the lost security and issuer policies.
Call us at 407-786-7770 or email us at [email protected]