Other Commercial
Lost Instrument Bond
A bond you give a bank or issuer so it will replace or pay a lost, stolen, or destroyed check, note, or other instrument.
- Required by
- Banks, issuers, transfer agents, and courts
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond protects the bank or issuer if the original instrument later shows up and someone else demands payment on it. The surety pays the issuer's loss, and you must repay the surety. The Uniform Commercial Code requires the paying party to be adequately protected before a lost instrument is enforced, and this bond is the usual way to do that.
Who needs it
- People and businesses with a lost cashier's check, money order, or certified check
- Holders of a lost promissory note or deed of trust
- Estates that cannot find original instruments
What the underwriter looks at
- Face value of the instrument
- Applicant's credit
- Age of the instrument
- Whether the bond has a fixed or open penalty
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much bond will I need?
Usually the face value of the instrument, though some issuers ask for more or for an open penalty bond with no fixed limit. The bank or issuer sets the requirement.
What if I find the original later?
Return it to the issuer. That ends the risk the bond covers.
Can the bank still refuse to pay?
The bank sets its own requirements, which may include a waiting period, but a bond usually satisfies them.