What is a Kansas Lost Instrument Bond?
The Kansas Lost Instrument Bond is a guarantee provided by an issuing entity that if documents with financial value cannot be located — subsequent to a systematic, exhaustive, conscientious, and cautious search -– the said lost instruments will be replaced.
Below are some of the said documents with financial value:
- bond certificates
- certificates of deposits
- real estate certificates
- cashier’s checks
- savings passbooks
This bond also provides a warranty that if the original missing document surfaces, it will be given back to the surety company for appropriate clearance. In the case of checks, if the original instrument re-emerges, the principal will not be able to cash it.
With the bond, the financial institution makes sure that the bank is not financially jeopardized by paying the face amount of the check more than once.
Why do you need a Kansas Lost Instrument Bond?
The Kansas Lost Instrument Bond serves to protect all parties involved in your transactions from the unexpected loss or misapplication of financial instruments
The official papers placed in your trust are of a delicate nature that if they get pilfered or lost, the owners of the said instruments are assured that they will not be compromised either psychologically or financially due to the said instruments’ damage or loss.
A more detailed view on Kansas Lost Instrument Bond:
The bond’s coverage is not applicable to instruments that have been voluntarily destroyed or ruined on purpose with the objective of revoking its legal outcomes. It is also not applicable to instruments that have been mutilated.
Generally, the Kansas Lost Instrument Bond is issued for a period of 1 year, though there are specific instances when the obligee explicitly requests for the bond to be enforceable for several years.
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 re-materializes.
What is the cost of this Bond?
The bond amount is determined by the financial institution that handed out the instrument.
More often than not, the amount of the lost instrument or face value 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 be a huge factor.
How do you secure this Bond?
A professional and legitimate surety bond agency is the most stress-free method and the most inexpensive route to getting hold of a Kansas Lost Instrument Bond.
Let proficient surety experts demonstrate to you how a professional surety company’s capable methods and well-organized practices diminish your expenditures. No more miscalculations and mix-ups. Don’t hesitate! Start the bonding process today.