Alabama Lost Stock Certificate Bond – if you lose your stock certificate, don’t worry—for the majority of stocks, you still own your shares even without the paper certificate. Follow the steps below to get your certificate replaced.
First, you must notify the transfer agent of the loss. According to the Securities and Exchange Commission,
“Companies that have publicly traded securities typically use transfer agents to keep track of the individuals and entities that own their stocks and bonds. Most transfer agents are banks or trust companies, but sometimes a company acts as its own transfer agent.”
The transfer agent will place a “stop transfer” on the certificate. This is to prevent others from cashing it in. The transfer agent or the broker-dealer will then notify the SEC of the lost or missing certificates. The transfer agent will provide a letter with what is required to replace the certificates. One of those items will be an “open penalty surety bond” and they will offer to provide it for you. You are not obligated to use their bond facility and you can save a third or more by purchasing your bond from Surety1.
To replace your lost stock certificate, a “lost instrument bond” for a stock certificate is required by the issuing company. This bond is a third-party guarantee against financial loss for the company. Learn more about what the bond does and why it’s required.
Apply in minutes using our easy to navigate, online application. Alabama residents can apply here for a “lost instrument bond” for your lost stock certificate: Lost Instrument Bond Application. Surety1 has been the premier provider of surety bonds in the United States since 2003. The company maintains an A+ rating by the Better Business Bureau and represents over a dozen “A” rated surety companies.