The HKMB HUB Estates and Instrument Replacement team is uniquely qualified to provide bonds of indemnity to facilitate the replacement of lost debt and equity certificates and to assist in the transfer of ownership from non-probated estates. Our staff works directly with transfer agents, law firms, private individuals and institutional investors to facilitate the replacement of lost share and bond certificates by providing comprehensive step-by-step guidance through the entire process of obtaining bonds of indemnity.
Specific Coverages we Provide
Mail Insurance Coverage
Mail Insurance provides coverage for outgoing certificate mailings. Should an instance of non-delivery of certificates occur, a surety bond(s) is issued in order to facilitate replacement. Coverage with this bond will vary according to the class of mailing, the recipient location address, and the policy limit.
Blanket Lost Instrument Bond Security Coverage
A Blanket Lost Instrument Bond covers a Transfer Agent and the Stock Issuer by assuming liability for shareholder or estate lost certificates. Various coverage limits may be negotiated and shareholders or estate trustees are offered competitive terms to affect replacement of lost, stolen or destroyed certificates.
Blanket Waiver of Probate Bond Coverage
A Blanket Waiver of Probate Bond covers a Transfer Agent by assuming liability when requested to transfer shares registered in a deceased person’s name where the Estate has not been probated by the Province or State Court office. Various assumption coverage limits may be negotiated and representatives are offered competitive terms to affect the transfer of shares.
Premise Loss Coverage
Losses of certificates occurring internally at locations covered. The Transfer Agent indemnifies the surety company who will then issue bonds of indemnity to replace the covered certificates. Companies that may require this coverage are stock transfer agent, financial institution, federal government, public or private stock issuer.
FAQs
What is the purpose of lost instrument bonds, lost securities bonds, and indemnity bonds?
These bonds indemnify the corporation, the shareholder and the Transfer Agent against any and all claims arising from the replacement by the Transfer Agent of lost, stolen, or destroyed certificates.
When would I need a lost instrument bond?
When a person or a corporation loses a stock certificate, a savings bank book, promissory note, certified check, or similar document, the issuer will not deliver a duplicate until the owner furnishes this type of bond. This bond guarantees that if the original lost document is found, it will be returned to the surety company or obligee for proper disposal and that the issuer of the replacement security will not suffer an economic loss.
Are there different types of lost instrument bonds?
Yes, lost instrument bonds can be divided into one of two categories:
- Fixed Penalty bonds are needed when the items lost are certified checks, certificates of deposit, or any items with a fixed value.
- Open Penalty bonds are needed when the items lost are stock certificates or any other items whose market value fluctuates.
The required amounts and types of bonds are often specified by the obligees.
How do I apply for a lost instrument bond?
Call HKMB HUB. We will show you how our tailored process will reduce the cost and help you avoid the confusion.
