Lost Instrument Bonds

Lost Instrument Bonds are issued when an individual or a company (Principal) loses a certificate, which may be shares, debentures, warrants, bonds, etc. In order for the issuing agent (Transfer Agent) to issue replacement certificates, they require a Lost Instrument Bond.

Fixed Penalty Bonds are used for replacement certificates of fixed value such as corporate debentures.

Open Penalty Bonds are used for replacement certificates of fluctuating value such as common shares.

The surety guarantees to the Issuing Company and the Transfer Agent that the Principal will reimburse the Issuing Company and Transfer Agent for any loss that may be incurred in the event of double redemption of the certificates.