What is a Michigan Lost Instrument Bond?

Michigan Lost Instrument BondIssuing authorities will require individuals to submit a surety bond before they will issue a replacement for any valuable instrument that has been lost or stolen.

The Lost Instrument Bond, also referred to as a Lost Note Bond, aims to protect issuing authorities (issuer of the original instrument) in case another person files a claim on the instrument that has been replaced.

This bond also assures that you will surrender the new instrument to the issuing authority or surety for proper disposal if you have found the instrument that was missing.

Instruments are legal documents that have financial value. Some examples of these so-called essential instruments are as follows:

  • Stock Certificates
  • Mortgage notes or real estate lien notes
  • Real Estate Certificates
  • Certificate of Deposit
  • Treasury Bills
  • Deed of Trust
  • Bond Futures
  • Cashier’s Check
  • Building and loan shares
  • Passbooks
  • Interest Coupons
  • Life insurance policies
  • Membership certificates


What are the types of Lost Instrument Bonds?

Lost Instrument Bonds are issued as a Fixed Penalty or Open Penalty concerning the penal amount and are required by banks, brokers/brokerage firms, transfer agents, individuals, and companies that lose redeemable items of financial value.

  • Fixed Penalty is set to a specific amount.
  • Open Penalty is not set to a specific amount.


What is the bond amount?

The bond amount varies. The surety bond cost (bond premium), however, will depend on the value of the instrument, as well as your credit score.   

Instruments that have a value of $5,000 or less can have a surety bond premium of $100.    

For instruments that have more than $5,000 in value, the surety bond premium that you need to pay will be $20 per one thousand and are subject to underwriting.


How can I replace a Lost Instrument?

This will vary per issuing authority.  Each has its own 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  submit  a  written  statement  about  the  circumstances  of  the lost instrument
  • You will be asked to provide proof of identity
  • You must post a surety bond


How do I get a Lost Instrument Bond?

You can easily get this surety bond from us! We will guide you through the entire process. We’ll make sure that you will understand what you are getting into.

Here’s how to do get bonded:

You have to send an application to us. If you are ready to do that now, GET YOUR FREE SURETY BOND QUOTE TODAY! 

After we have received your application, we will ask you to submit the necessary information needed for the underwriting process. These are the following:

  • Your financial capability
  • Your business or job performance history
  • Your credit score

An expert underwriter will carefully evaluate all three to attain the best credit decision possible. To avoid any delay, the information that you should submit should be organized and concise.

Your surety bond will be issued and sent to you!

Call us at 800-333-7800 now!

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