What is a South Dakota Lost Instrument Bond?
The South Dakota Lost Instrument Bond is that watertight guarantee offered by an issuing entity that in the event a document with a financial value such as stocks, cashier’s checks, or bond certificates cannot be located — after an exhaustive, systematic, cautious and conscientious search – said lost instrument would be replaced.
This bond also provides a warranty that if the original missing documents — real estate certificates, savings passbooks, and certificates of deposits — 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 the South Dakota Lost Instrument Bond?
You need the South Dakota Lost Instrument Bond 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 lost or pilfered, 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 South Dakota 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.
The South Dakota Lost Instrument Bond is issued for one 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 rematerializes.
What is the cost of a South Dakota Lost Instrument Bond?
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 also be a huge factor.
How do I get the South Dakota Lost Instrument Bond?
Getting a South Dakota Lost Instrument Bond is simple. Contact a genuine surety bond provider for rapid processing and be afforded professional treatment. Choose the one who can provide you prompt and efficient service.