If you lose your stock certificate, don’t worry—for the majority of stocks, you still own your shares even without the paper certificate, however you may be required to provide a Texas Lost Stock Certificate Surety Bond.
Follow the steps below to get your certificate replaced.
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.
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. This particular surety bond is referred to as an “Open Penalty Lost Instrument bond”. This means the penalty of the bond is based on the value of the stock. If the value of the stock that was lost goes up, the bond amount automatically increases with it. There is no additional premium required if this happens.
While the bond is “Open Penalty“, the bond amount, the amount used to calculate the premium to be paid, is the value of the lost stock on the day the transfer agent issued the stop on the shares.
Surety Solutions Insurance Services, Inc. (Surety1) has been providing lost stock certificate bonds since 2003. In most cases, surety1 can provide the required bond at significant savings over what the transfer agent provides the bond for. Surety1 represents over a dozen, “A” rated surety carriers and will shop your application to provide the best rate possible. Texas residents can apply here for a “lost instrument bond” for your lost stock certificate: Lost Instrument Bond Application
Surety1 offers an easy to navigate, online application and maintains an A+ rating by the Better Business Bureau.