Surety1 Provides the Level of Security You Need When a Stock Certificate is Missing
A lost, stolen, or destroyed stock or securities certificate doesn’t have to be a crisis. When this happens, your first step should be to contact your transfer agent to request a stop transfer on your certificate. Your next step is to contact Surety1. We’ll help you obtain your Lost Stock Certificate Surety Bond to satisfy the U.S. Securities and Exchange Commission (SEC) requirements.
What is a Lost Stock Certificate Surety Bond and why do I need one?
A Lost Stock Certificate Surety Bond is an indemnity bond required by the issuer of the certificate and the SEC when a stock certificate has been lost or stolen. The bond is a safety net for the transfer agent in that if the lost certificate is found and sold, the transfer agent doesn’t suffer any economic loss. If you don’t purchase this bond, you’ll have difficulty selling your securities or settling an estate because you won’t have proof of ownership of your stock.
How do I get a Lost Stock Certificate Surety Bond and how much does it cost?
Given that it’s easy to misplace documents, a Stock Certificate Surety Bond is fairly easy to obtain. The bond fee is 2% of the bond amount, and there is a minimum of $100. If the bond amount is over $25,000, a credit check is required, and the fee might vary.
For many financial institutions, stock issuers, and stock transfer agents, this surety bond is a requirement. If there is a claim placed on your bond and you are found at fault, the surety company will pay out. However, you will have to pay them back. Surety companies require that the bond amount is based on the current market value of the stocks because the bond is written as an open penalty.
Apply now! Fill out our easy-to-use application form, and Surety1 will work fast to obtain your Lost Stock Certificate Surety Bond. We’ll follow up with a firm quote, and once you provide payment and your signed agreement, you will receive your bond!