A Lost Stock Certificate Surety Bond is required by the issuing company of the stock, through its transfer agent. The purpose of the bond is to protect the corporation and the agent in case the lost certificate is somehow redeemed by another party at a later date.
Regardless of whether a shareholder loses his or her stock certificate, that person still owns the shares. There are a number of steps required in order to replace the stock certificate and the lost instrument bond is just one step. To replace a lost stock certificate the shareholder must:
Here at Surety1, we write these bonds starting off at anywhere between 1% to 3% of the bond amount. The bond amount required for these bonds is always the present day value of the Stock, however the bonds are usually considered “open penalty”. This means the actual potential loss on the surety bond would be based on the value of the stock at the time of the loss.
If you need a Lost Stock Certificate Surety Bond, apply here. Once we receive your application, we will get back to you with a firm quote, usually within a few hours of applying. (If during normal business hours).