Lost Instrument Bonds
If a cashier's check, promissory note, stock certificate, or other valuable financial document is lost or stolen, a lost instrument bond lets you obtain a replacement from the issuer. It protects the financial institution from paying twice in case the original resurfaces and is presented for payment.
We offer the following Lost Instrument Bonds:
Filter Bonds
Lost Financial Instrument / Indemnity Bond]
| Bond Amount Required | Bond Term | Annual Premium |
| Determined by Issuing Institution* | 1 Year** | Quote Required |
The issuing financial institution determines the required bond amount, typically around 1.5 times the value of the lost instrument.
One year is an available product term. The issuing institution or surety may require a longer term.
A California Lost Instrument Bond is an indemnity bond used when a valuable financial document has been lost, stolen or destroyed and the issuing institution requires protection before issuing a replacement. Covered instruments can include cashier's checks, corporate or municipal bonds, promissory notes, property deeds, savings bank books, stock certificates and similar documents.
Bond Amount and Cost
The required bond amount varies based on the issuing institution's requirements. NNA Surety states that the financial institution issuing the instrument determines the bond amount, which is typically about 1.5 times the value of the lost instrument.
The cost of a California Lost Instrument Bond depends on the required bond amount and instrument type. Lost instrument bonds typically cost approximately 2% of the value of the misplaced financial document, although minimum flat fees and underwriting requirements may apply. Contact NNA Surety for a quote.
View the NNA California Lost Instrument Bond product page.
How the California Lost Instrument Bond Works
The California Lost Instrument Bond protects the issuer against financial loss if it replaces the missing instrument and the original is later presented or otherwise creates a duplicate obligation.
Fixed-penalty bonds generally apply to instruments with a fixed value, while open-penalty bonds may apply to instruments such as stock certificates whose value can change.
The bond generally involves three parties:
- Principal: Owner or claimant requesting replacement of the lost instrument
- Obligee: Financial institution or other entity that issued the instrument
- Surety: Bonding company
A claim against the bond may be filed if a covered financial loss occurs after the missing instrument is replaced. The principal is responsible for reimbursing the surety for valid covered claims paid.
How to Get a California Lost Instrument Bond
Follow these steps to obtain your California Lost Instrument Bond:
- Report the lost, stolen or destroyed instrument to the issuing institution.
- Confirm whether an indemnity bond is required and obtain the issuer's required bond amount, form and term.
- Apply for the lost instrument bond using the instrument details and required bond amount.
- Provide the completed bond to the issuing institution and follow its replacement procedures.
- If the original instrument is later found, follow the surety's and issuer's instructions for returning or canceling it.
Learn more about your California surety bond options across the state.
Get Your California Lost Instrument Bond
Need to replace a lost, stolen or destroyed financial instrument? Contact NNA Surety to discuss your California Lost Instrument Bond requirements and obtain a quote. Call 855-215-2160 for assistance.