What is an Alaska Lost Instrument Bond?
Centuries ago, business deals are manifested by the trouble-free transaction of barter. Today, the world greatly relies on paper. This paper is commonly known as a negotiable instrument. Since this commercial paper is good as payment for any commodity sold or service provided in any given market, it is extremely vital. It is so important that when it gets lost, the loss could cause so much havoc, not just to the person who owns it, but also to other individuals and businesses who may be involved in the transaction for which that instrument was created. It is because of these eventualities that the Lost Instrument Bond exists.
The Alaska Lost Instrument Bond is a guarantee that is above reproach and given by an issuing entity assuring that when financial instruments such as stocks, cashier’s checks, bond certificates, certificates of deposit, and real estate certificates cannot be located — after an orderly and efficient search has been made – such lost items will be substituted. The bond is likewise a full warranty that if the original missing documents re-surface, the principal will not be able to cash them or make use of them. With the bond, banks will not be financially imperiled by people who go cashing the checks more than once.
Why do you need an Alaska Lost Instrument Bond?
You need the Alaska Lost Instrument Bond to save all parties from harm due to a sudden loss or misapplication of a financial instrument. The official documents entrusted to your care are of a delicate nature that if they get lost, the owners of the said instruments are given surety that they will not be compromised either financially or psychologically due to the said instruments’ loss or damage. You also need this bond to protect your professional image and safeguard your business brand.
More details about the Alaska Lost Instrument Bond
The Alaska Lost Instrument Bond’s coverage is not applicable to instruments that have been destroyed on purpose or those that have been defaced.
The bond cannot be renewed when it’s beyond its first term and cannot be invalidated or released by the surety, as the lost instrument may resurface at any given time, thereby keeping the accountability still in force in case it rematerializes.
What is the cost of an Alaska Lost Instrument Bond?
The Alaska Lost Instrument Bond is not costly. The bond amount is determined by the financial institution that handed out the instrument. The face value or amount of the lost instrument is multiplied by 1.5 to establish the amount of the bond premium that needs to be paid. Also, just like other types of bonds, the applicant’s credit history can also be a huge factor.
How do I get an Alaska Lost Instrument Bond?
To save time and money, contact genuine professionals. With Surety Bond Authority taking care of your business affairs, you will have the answers you need and the solution to the concerns you with regards to protecting your business and your clients.