Lost Cashier’s Check Bond – Lost Instrument Surety Bond

A Lost Cashier’s Check Bond is a form of Lost Instrument Surety Bond. The bond is required from the issuing bank when a cashier’s check has been lost or misplaced.

The bank cannot issue a stop payment on the cashier’s check, so in order to re-issue a new cashier’s check, they require a surety bond. If the lost check is brought to the bank and is endorsed, they must pay out on the check, in addition to the new re-issued check. The surety bond prevents the bank from the loss of both checks being cashed. If both checks are cashed, then the bank can collect payment from the surety company.

If there is a claim placed on your bond and you are found at fault, the surety company will pay out. However, you will have to pay the the surety back.

Bond Requirements and Cost

The cost of the bond is 2% of the bond amount with a minimum of $100. Usually the bond amount is the amount of the lost check, however some bonds may require a bond in excess of the check amount.

Only on bond amounts over $25,000 is a credit check required. The rate can be higher, or lower for larger bonds depending on credit and other underwriting criterion.

Please make sure you verify that your bank will accept a surety bond before applying.