What is a North Dakota Lost Instrument Bond?
The North Dakota Lost Instrument Bond is a guarantee given by an issuing body that in the event a document with financial value like stocks, cashier’s checks, or bond certificates cannot be found — after a thorough and search has been made – said lost instrument will be replaced. Other examples of financial instruments that could be lost and can be covered by this bond include real estate certificates, savings passbooks, and certificates of deposits.
This bond is also a guarantee that if the original missing document surfaces, it will be given back to the surety company for appropriate clearance.
In the case of checks, in the event that the original instrument re-emerges, the principal will not be able to cash it. With the bond, banks will not be financially jeopardized by cashing the check more than once.
Why do you need a North Dakota Lost Instrument Bond?
You need the North Dakota Lost Instrument Bond so that you can 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 lost, the owners of the said instruments are assured that they will not be compromised either financially or psychologically due to the said instruments’ loss or damage.
More details about the North Dakota Lost Instrument Bond
The bond’s coverage is not applicable to instruments that have been destroyed on purpose with the goal of invalidating its legal effects. It is also not applicable to instruments 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.
How much does a North Dakota Lost Instrument Bond cost?
The bond amount is determined by the financial institution that handed out the instrument. More often than not, 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. In addition, just like other types of bonds, the applicant’s credit history can also be a huge factor.
How do I get a North Dakota Lost Instrument Bond?
So as not to squander time and effort, contact only genuine professionals. Give Surety Bond Authority specialists a call! 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.