What is a Virginia Lost Instrument Bond?
What is a Lost Instrument Bond?
It is an important requirement that will be submitted to issuing authorities who will replace the lost financial instrument.
The purpose of this surety bond is to indemnify any person or persons who will lay claim on the replaced instrument. The surety bond will protect the issuing authority as well.
This type of surety bond will also act as an assurance that the Principal (the person who bought the bond) will surrender the new instrument to the issuing authority or surety for proper disposal in the event that the lost instrument has been found.
Instruments are legal documents that have financial value.
Here are some examples of these important instruments:
- Stock Certificate
- Real Estate Certificates
- Certificate of Deposit
- Treasury Bills
- Bond Futures
- Cashier’s Check
What is the Lost Instrument Bond amount?
The bond amount varies widely.
The surety bond premium, however, will depend on the value of the instrument and 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.
How can I get a Lost Instrument Bond?
You can easily secure this surety bond from us!
We’ll guide you through the entire process and we’ll make sure that you will understand what you are getting into.
Below are the steps on how to get bonded:
- You have to send an application to us. If you are ready to do that now, you may APPLY HERE!
- 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 credit score
- Your business or job performance history
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!
What is the process of replacing 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 submit proof of identity
- You must submit a surety bond