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Home > Surety-Bonds > Lost Instrument Bond

Lost Instrument Bond



The instrument of lost instrument bonds do not refer to musical but rather financial instruments. When a financial certificate such as a cashier’s check is lost or stolen, the institution that issued the check is held responsible. Therefore, if a duplicate check is issued and the lost or stolen check is deposited, the issuer must pay those funds. The lost instrument bond is put in place to guarantee if the original lost instrument shows up in the future, the bonded party will not be able to cash it as well. By requiring this bond, the financial institution ensures the bank does not lose money and afflict an economic loss by paying the amount of the checks worth more than once.

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