What are indemnity bonds?

Answer 1

Miscellaneous Bonds:

Indemnity Bond for Lost Instruments

Often a Fiduciary, in the course of evaluating the assets of an estate, may find that documents are missing. Additionally, during a real estate closing, an attorney may find that certified checks or shareholder certificates cannot be located.

When a certified check, corporate bond, bearer certificate, stock certificate, trust deed, Co-op shares, etc., is lost or stolen, the usual recourse is to obtain a duplicate. Before issuing a duplicate, the originating bank, company or corporation will require an Indemnity Bond to protect it against loss, costs, damages or expense, should the original instrument be presented or paid through error.

Underwriting acceptance is determined by the financial status and ability of the owner of the missing security, the circumstances of the loss or theft, and the specifications of the missing item itself.

There are many other bonds that attorneys may need for themselves or their clients such as Liquor Bonds, License and Permit Bonds, Public Official Bonds, etc. The specific bonds listed here are only a few of the dozens of variations. Further, when no bond seems suitable, hand crafted bonds may be created.