An Oregon Lost Stock Certificate Bond is a type of surety bond and will be required to replace a lost stock certificate. The bond will be required by the transfer agent. While the transfer agent may provide a facility to obtain the bond, this is usually the most expensive means of obtaining it. You are not required to purchase the surety bond from the transfer agent. The bond is open penalty, meaning the bond amount equals the value of the underlying stock and increases or decreases with the value of the stock. The bond premium (what one pays for the bond) is a one time fee and is a small percentage of the value of the stock at the time it was reported as lost to the transfer agent.
How to Replace a Lost Stock Certificate in Oregon
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.
1. Notify the Transfer Agent
First, you must notify the transfer agent of the loss. 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.
2. Apply for a Oregon Lost Stock Certificate Bond
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.
Oregon residents can apply here for a “lost instrument bond” for your lost stock certificate: Lost Instrument Bond Application
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Learn more about what the bond does and why it’s required.