Frequently Asked Questions - Lost Certificate
Any shareholder with a lost stock certificate must obtain a surety bond (either independently or through Island’s blanket bond) prior to Island replacing the stock certificate.
Surety Bonds for individuals require extensive paperwork applications and can be time consuming to obtain. Often, the premium required is based upon the shareholder’s individual credit score, and the surety company reserves the right to refuse a shareholder’s request for a bond. Island’s blanket bond covers all shareholders on our record, and is a fixed price unrelated to credit. Further, the paperwork required to use the bond is considerably less and in most cases a stock certificate can be replaced immediately upon receipt of the appropriate documentation/fees.
If the stock is not publicly traded, the value of the stock is considered to be the price the shareholder originally paid for it. Documentation may be requested to prove the original purchase price. The bond premium would be calculated as 2.5% or 4.5% of this value.
No, a bond is required to replace any stock certificate regarding the restriction/free‐trading status.
Any shareholder who has lost a stock certificate and desires to have the certificate replaced.
A surety bond is required by transfer agents to replace a lost stock certificate to protect and indemnify the transfer agent, issuer, and shareholder against any and all claims arising from the replacement by the transfer agent of a lost, stolen, or destroyed stock certificate.
Any certificate which has been lost, stolen, or destroyed should be reported to Island Stock Transfer immediately in writing via email, fax, mail, or courier. At such time, Island will “red flag” the certificate to prohibit its transfer and cause Island to notify the shareholder and/or issuer immediately if the lost certificate is presented for transfer.
To replace a lost, stolen, or destroyed certificate, Island Stock Transfer must receive all necessary paperwork from the shareholder or issuer so as to be covered under a surety/indemnity bond. The shareholder may obtain a surety bond independently, or the shareholder may opt to use Island’s blanket surety bond. To use Island’s blanket surety bond, the shareholder must present the following to Island:
- Application for Lost Instrument Bond form signed and notarized
(If market value of holders position is over $50,000: Holder will need to send two fully completed, signed & notarized copies of the application for lost instrument bond to Island Stock Transfer.)
- Payment in full of Bond Premium:
- If domestic shareholder (located in US or Canada): 2.5% the value of the stock at the time it was notified as lost, stolen, or destroyed
- If international shareholder (located outside the US and Canada): 4.5% the value of the stock at the time it was notified as lost, stolen, or destroyed
- Minimum Premium: $75.00
Delivery instructions for new stock certificate, and prepaid courier arrangements (prepaid waybill, courier account number, or $25.00 to use Island’s courier account for delivery)
Upon receipt of all necessary documentation and fees, Island will replace the lost certificate and deliver the replacement certificate according to the shareholder/issuer’s request via courier.
