Infographic: Get to Know the Importance of Lost Securities Bond
The infographic, “The importance of Lost Securities Bond,” gives an overview on lost security bonds and what documents are protected under lost securities bond.
A Bond protects the obligee against losses from the principal. Lost securities bonds are needed when an individual or corporate has lost, misplaced, or mistakenly damaged an original document that is considered a proof of ownership.
There are normally two types of Lost Security Surety Bonds: fixed penalty and open penalty. Fixed penalty bonds are issued for documents with fixed values, such as certified checks or certificates of deposit; however, open penalty bonds are issued for documents whose value fluctuate or any stock certificates.
If any of the documents goes missing, a stop transfer should always be initiated with the transfer agent, and a new certificate can be obtained. Refer to the infographic below for more information.