What is an Oregon Lost Instrument Bond?
Cheques and bank drafts are misplaced or lost now and then either because someone stole it, or it was deliberately discarded, or by negligence, or just simply bad luck. When this happens, there are always significant consequences involved.
When a financial/negotiable instrument is lost, the drawer (in the case of a cheque) or the buyer (in drafts) will have a sizeable latent responsibility if the instrument gets into the hands of a fraudulent individual. And even when it has remained a “lost” item, there is no straightforward method by which it can be “canceled,” therefore, it remains a liability. Hence, the existence of a Lost Instrument Bond.
An Oregon Lost Instrument Bond Is an unimpeachable assurance provided by an issuing entity that when a financial instrument like a stock, cashier’s check, bond certificate, certificate of deposit, real estate certificate cannot be located — after a systematic search has been made – such lost item will be substituted. The bond is likewise a guarantee that if the original missing document re-emerges, the principal will not be able to cash it. With the bond, banks will not be financially put at risk by cashing the check more than once.
Why do you need the Oregon Lost Instrument Bond?
You need the Oregon Lost Instrument Bond to save all parties from harm due to the unexpected 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.
More details about the Oregon Lost Instrument Bond
The Oregon Lost Instrument 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.
What is the cost of an Oregon Lost Instrument Bond?
The Oregon Lost Instrument Bond is not costly. 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. Also, just like other types of bonds, the applicant’s credit history can be a huge factor.
How do I get an Oregon 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. Check out our answers to frequently asked questions.