What is a Colorado Lost Instrument Bond?
Get replacements for your valuable lost instruments through this bond!
Losing a vital instrument is stressful. Replacing one shouldn’t be! We can easily help you with that.
A surety bond is an essential requirement for having an instrument replaced.
Instruments are legal documents that have financial value. Some examples of these so-called necessary instruments are as follows:
- Stock Certificate
- Real Estate Certificates
- Certificate of Deposit
- Treasury Bills
- Bond Futures
- Cashier’s Check
Why do you need a Colorado Lost Instrument Bond?
The purpose of a lost instrument surety bond is usually twofold:
First, the surety bond will be for the benefit of the transfer agents or company that will issue the replacement. It will protect the parties as mentioned above from false claims.
Secondly, the surety bond will also act as an assurance that if the principal found the lost instrument after it has been replaced, the principal will surrender the new one to the issuing authority or surety for proper disposal.
What is the bond amount?
The bond amount varies widely. The surety bond cost, however, will depend on the value of the instrument.
Instruments that have a value of $5,000 or less can have a surety bond cost of $100.
For instruments that have more than $5,000 in value, the surety bond cost that you need to pay will be $20 per one thousand. Keep in mind that for larger / unique situations that more favorable rates can be negotiated.
If you want to determine what you need to pay right now, ask us for a FREE quote here!
How can I obtain this type of bond?
First, you have to submit an application to a reputable surety bond company such as Surety Bond Authority. We will guide you through the whole process, and will make things easier for you!
The prequalification process will come next after you have applied for this bond. During this stage, one of our expert underwriters will evaluate your financial history, job/business history, and credit score.
Take note that certain individuals may be exempted from being underwritten. In this case, the person will immediately qualify for the bond upon application.
Once qualified, we will immediately execute the bond and send it to you!
What is the process of replacing a lost instrument?
This will vary per issuing authority. Each has its set of rules regarding instrument replacement. However, there are some common factors in this process such as the following:
- You must submit an affidavit stating all pertinent facts about the lost instrument
- You will have to provide a written statement about the circumstance of the lost instrument
- You will be asked to submit proof of identity
- You must post a surety bond