What are Fixed Penalty Lost Security Surety Bonds?
Fixed Penalty Lost Security Surety Bonds, also known as Fixed Penalty Lost Instrument Surety Bonds, are required for individuals and businesses in the event that items with a fixed monetary value, such as certified checks or money orders, are lost, stolen or destroyed.
These financial guarantee surety bonds ensure the replacement of these securities at no loss to the original issuer, as well as their secure return and proper disposal in the event that the original is later recovered.
Who requires a Fixed Penalty Lost Security Surety Bond?
When you lose a security with a fixed monetary value and you request the issuer to replace it, the financial institution will require a bond to guarantee they will not lose money by paying the amount of the lost securities worth more than once. Since the principal is the one who lost the certified check or money order, the financial institution requires the principal to purchase the bond.
If the lost security is found after the bond has been issued, it must be returned to the surety company that issued the bond. If a claim is filed against the bond and you have failed to return the security, the surety may compensate the claimant. In that event, the principal would be responsible for reimbursing the surety company for any monies paid out, including attorney’s fees.
How much are these Surety Bonds written for?
The bond amount for a Fixed Penalty Lost Security Surety Bond varies and is set by the financial institution that issued the lost security and is requiring the bond. Typically, the bond amount is 1.5 times the value of the lost or stolen security.
This type of bond is usually issued for a one-year term, unless the financial institution deems it necessary to have a multi-year term. The bond does not renew past the initial term. Since the lost security could turn up at any point during the bond term, the surety company can not cancel or release the bond during the specified term. Please consult with your financial company for the bond amount and term length that you will require.
How much do Fixed Penalty Lost Security Bonds cost?
Fixed Penalty Lost Security Surety Bond pricing will vary, and your premium will be based on a number of factors including the following:
- Amount of the bond
- Personal credit of the principal
Individuals with good credit will typically pay $20 for each $1,000 of coverage needed. For bonds with amounts of $5,000 or less, the price is usually fixed at $100. To find out how much your Fixed Penalty Lost Security Bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I get this bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Fixed Penalty Lost Security Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants regardless of how bad their credit is, and our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
How do I Obtain a Fixed Penalty Lost Security Surety Bond?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7873 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.