Lost instrument bonds act as a legal contract between three parties: The principal is the individual purchasing the bond who lost the financial certificate. The obligee is the financial institution that issued the original instrument. The surety is the provider issuing the bond and backing the principal.
What is a lost instrument bond?
A fairly typical cost guideline is $20 for every $1,000 of value of the lost instrument. If a promissory note for $50,000 were lost, you would probably have to pay in the neighborhood of $1,000 to the surety company to purchase a bond covering the amount of the certificate.
What is an example of a lost instrument bond?
To give you an example, if youre trying to replace a $10,000 cashiers check, then you designate on the lost instrument bond form that you need a bond for $10,000. If a claim was ever filed against the bond (because someone cashed the original check), then the surety company would pay out exactly $10,000.
lost instrument bond
Lost instrument bond form templateLost instrument bond form pdfLost instrument bond form texasLost instrument bond form california
Related links
Miscellaneous Surety Bonds and the Restatement
by JA Black Jr 1993 Cited by 12 miscellaneous surety bonds include customs bonds, trustees bonds, lost instrument bonds, and livestock, market agency, and packers bonds. Obviously, this
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