Financial institutions are known for protecting their assets. It is difficult to find an industry that is more regulated than the financial industry. This means that banks, credit unions, investment firms, and other financial institutions require more red tape and stipulations to do business with them.

Some transactions that are conducted through a financial institution require certain assurances for the bank to deem them responsible transactions. In these cases, a surety bond may be required to ensure the bank that any financial obligation will be carried out by their customers.

Some common surety bonds that are required by financial institutions include:

Lost Cashier’s Check Bond – Lost Instrument Surety Bond

If a customer loses a cashier’s check, the bank that issued the check may require a Lost Cashier’s Check Surety Bond. This is because the bank cannot issue a stop payment on the check. If the lost check somehow gets cashed, the surety bond is financial protection against the bank paying out for two checks.

Lost Stock Certificate Surety Bond

If a stock certificate is lost, that does not mean the stockholder no longer owns the stock. Most stocks issued today are in registered form. This means that there is a registry that states who owns stocks regardless of the certificate. However, stocks used to be issued in bearer form, and some companies still use bearer forms. If a stock is sold using a bearer form, the only proof of stock purchase comes from the stock certificate. It is almost impossible to restate a certificate for a bearer form. If one does lose a stock certificate, it is best to contact the transfer agent or the broker dealer. They may require a stock certificate surety bond to protect the transfer agent from any financial loss resulting from reissuing a stock certificate.