A Lost Instrument Bond is a type of financial guarantee surety bond. Financial guarantee bonds guarantee payments on a financial obligation.
Lost Instrument Bonds involve three parties:
If a financial instrument of yours (i.e. a cashier's check) becomes lost, stolen, or destroyed, then you will need a Lost Instrument Bond in order for the instrument's issuing authority to replace it. Financial institutions typically require a Lost Instrument Bond before furnishing you with a duplicate of the financial document.
You may require a Lost Instrument Bond to claim ownership of assets if you are missing the documents that prove ownership, such as:
Typically, Lost Instrument Bonds have a one-year term, and the obligee can request a longer term. The surety can not cancel or release the bond, because the lost instrument may turn up at any time, keeping the liability open.
You need a Lost Instrument Bond to protect the financial institution that issues the instrument, against it being cashed multiple times. In the event that an instrument is lost or stolen, and the institution has to issue a duplicate, they require a bond to ensure that they will not have to pay the amount of the instrument more than once, even if the original turns up.
A Lost Instrument Bond protects the bank in case someone fraudulently redeems a lost instrument. In that case, if the true owner claims ownership of an asset, the institution can claim on the bond to recoup their loss from surety. Then, the party who is not the true owner would then have to reimburse the surety for the amount paid on the claim.
There is no minimum or maximum amount for a Lost Instrument Surety Bond, and the amount is based on the value of the asset.
Lost Instrument Bonds have a minimum charge of $100, which covers any instrument up to a $5,000 value. Above that, each thousand-dollar increase of instrument's value typically results in a $20 premium increase, sometimes less. Lost Instrument Bonds for more than $10,000 require underwriting, and occasionally financial information from the principal.
In order to obtain a Lost Instrument Bond, you must submit a statement explaining:
Your instrument must have been lost for a minimum of 30 days before you can receive the bond.
Viking writes Lost Instrument Bonds nationwide. We provide quotes for Lost Instrument Surety Bonds quickly, usually within 24 hours from the receipt of the application and required documents.
Quotes are available for clients with low credit. In many cases, a bond is not out of reach simply due to bad credit.
The bonding process for an Auto Dealer is simple. Start with a quote, end with your bond in hand. We keep the process simple.
Viking can get your Freight Broker bond requirement satisfied quickly. Quotes and fast, FREE with no obligation.
Viking offers fast quotes and great rates for Auto Dealer Bonds nationwide.