California Lost Instrument Surety Bond

When a person or a corporation loses a valuable and redeemable instrument, the issuer will not deliver a duplicate until the owner furnishes a Lost Instrument Surety Bond. 

A Lost instrument Surety Bond is required for redeemable items of value such as a:

  • Cashiers Checks
  • Stock Certificates
  • Promissory Note
  • Savings Bonds
  • Certificates of Deposit
  • Check or Money Order
  • Life Insurance Policy
  • Deed of Trust
  • Membership Certificates
  • Warehouse Receipts
  • Interest Coupon
  • Savings Bankbook
  • Municipal Bond
  • Corporate Bond


The bond guarantees that the Principal will protect and hold harmless from loss or expense suffered as a result of duplicate issuance of an instrument.  Lost Instrument Surety Bonds can have either a Fixed Penalty or Open Penalty with regard to the penal amount and are most commonly required by Banks, Transfer Agents, Brokerage Firms, Individuals and companies that lose a stock certificate, mortgage note or other redeemable item of value.

  • Fixed Penalty is as it sounds, the penal sum of the bond is a specific set amount.
  • Open Penalty is a fluctuating amount, never set to a specific amount.


The required amounts and types of bonds are always specified by the obligee and directly related to the value of the lost instrument.  Apply for your California Lost Instrument Surety Bond and let our expert staff get the bond you need at the lowest possible price!

California Lost Promissory Note or Lost Trust Deed bonds (Reconveyance Surety Bond)

California has a special requirement for Lost Promissory Notes or Lost Trust Deeds on real property transactions.  Also known as a Reconveyance Surety Bond, a lost note or trust deed bond will stand in place of the original lost instrument when you are unable to provide the original instrument.  A corporate surety bond in an amount equal to 2 times the original stated amount of the note or deed is required in order to effect reconveyance of title to the property.

In accordance with California Civil Code 2941:

“Whenever the obligation secured by a mortgage or deed of trust has been fully satisfied and the present mortgagee or beneficiary of record cannot be located after diligent search, or refuses to execute and deliver a proper certificate of discharge or request for re-conveyance, or whenever a specified balance, including principal and interest, remains due and the mortgagor or trustor or the mortgagor’s or trustor’s successor in interest cannot, after diligent search, locate the then mortgagee or beneficiary of record, the lien of any mortgage or deed of trust shall be released by posting a..." California Lost Trust Deed Surety Bond of two times the amount "...of the original obligation secured by the mortgage or deed of trust and any additional principal amounts, including advances, shown in any recorded amendment thereto, or (2) one-half of the total amount computed pursuant to (1) and any accrued interest on such amount, and shall be conditioned for payment of any sum which the mortgagee or beneficiary may recover in an action on the obligation secured by the mortgage or deed of trust, with costs of suit and reasonable attorneys' fees. The obligees under the bond shall be the mortgagee or mortgagee's successor in interest or the trustee who executes a reconveyance under this section and the beneficiary or beneficiary's successor in interest." For additional information please refer to CA Civil Code 2941.7

Apply for your California Lost Instrument Surety Bond today and you will receive a free, no obligation quote for the bond you need.