What are Open Penalty Lost Security Surety Bonds?
Open Penalty Lost Security Surety Bonds, also known as Open Penalty Lost Instrument Surety Bonds, are necessary for individuals and businesses in the event that items with a fluctuating market value, such as stock certificates, are lost, stolen or destroyed.
These financial guarantee surety bonds ensure the replacement of these securities at no loss to the original issuer, as well as their secure return and proper disposal in the event that the original is later recovered.
Who requires Open Penalty Lost Security Bonds?
When you lose a financial instrument and you request the issuer to replace it, the financial institution will require a bond to guarantee they will not lose money by paying the amount of the lost instrument’s worth more than once. Since the principal is the one who lost the stock certificate, they are the one required to purchase the bond.
If the lost certificate is found after the bond has been issued, it must be returned to the surety company that issued the bond. If a claim is filed against the bond and you have failed to return the certificate, the surety may compensate the claimant. In that event, the principal would be responsible for reimbursing the surety company for any monies paid out, including attorney’s fees.
How much are Open Penalty Lost Security Surety Bonds written for?
The bond amount for Open Penalty Lost Security Surety Bonds varies and is set by the financial institution that issued the lost certificate and is requiring the bond. This type of bond is usually issued for a one-year term, unless the financial institution deems it necessary to have a multi-year term. The bond does not renew past the initial term. Since the lost instrument could turn up at any point during the bond term, the surety company can not cancel or release the bond during the specified term. Please consult with your financial company for the bond amount and term length you will require.
How much do Open Penalty Lost Security Surety Bonds cost?
Open Penalty Lost Security Surety Bond pricing will vary, and your premium will be based on a number of factors, including the following:
- Amount of the bond
- Personal credit of the principal
Individuals with good credit will typically pay $20 for each $1,000 of coverage needed. To find out how much your Open Penalty Lost Security Surety Bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I get this Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Open Penalty Lost Security Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants regardless of how bad their credit is, and our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
How are these bonds purchased?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7873 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.