Overview Dos and Don’ts Checklist Affidavit of Lost Stock Certificate and Indemnity Agreement Instructions Sample Affidavit of Lost Stock Certificate and Indemnity Agreement


contact your transfer agent immediately and ask that a “stop transfer” be placed against the missing certificates. Your investment may be lost permanently. In such cases. These are valuable documents and should be treated as such.COM. Because even this is no guaranty that the stockholder is truthfully reporting the situation. it may be difficult (if not impossible) to cancel it and obtain a replacement. Companies usually require stockholders who have lost or destroyed certificates to provide this document before they will issue replacements. Dos & Don’ts Checklist Protect your securities certificates. 2010 1 . the corporation or transfer agent may ask you to purchase an indemnity bond. No matter the system. This will prevent any third party from transferring the documents out of your name and into someone else’s. remnants of old systems and habits remain and there are certain areas in which paper documents remain fairly common. a process that starts with the completion of an affidavit of lost stock certificate. from organized files in safe-deposit boxes to cardboard boxes in the garage. INC. some companies also require that this affidavit include an indemnity clause.One of these is in the representation and trading of stock shares. The amount of this bond varies. If you follow the enclosed sample and guidelines. protecting the company from any monetary loss resulting from its reliance on the affidavit. Once you have discovered that your documents are gone. Securities and Exchange Commission’s lost and stolen securities program.1. consider asking your brokerage firm to hold the documents on your behalf. Many workplaces have gone paperless. but will often be between 2 and 3% of the current market value of the lost shares. . However. Overview The modern world is electronic. and even personal transactions are no longer confined to physical document exchange. you can resolve the situation quickly and may prevent the investment loss you would otherwise face if a third party found your document before you had the chance to report it missing. By some estimates. stockholders must replace the documents. If you are concerned about the cost and risk of housing the certificates yourself. 2. This package contains everything you’ll need to customize and complete your affidavit and indemnity agreement.S. If an innocent purchaser acquires the certificate you lost. there are as many as 50 million paper stock certificates in circulation and individual investors keep these documents in as many locations. physical certificates easily can be misplaced or destroyed. Your agent will report the certificates to the U. Request a new certificate and submit the enclosed affidavit as quickly as possible. AFFIDAVIT OF LOST STOCK CERTIFICATE AND INDEMNITY AGREEMENT & GUIDE © LEGALZOOM. Because the possibility exists that an innocent purchaser could present the lost certificate to the company.

Describe the stock that was lost using as much detail as possible. the par value. LegalZoom does not warrant the materials' quality. common or preferred). 3. and neither party has to endure the cost and worry of replacing lost documents. showing that you made all reasonable efforts to find those documents. direct.. Talk to your broker or the company itself if you are interested in converting your stock certificates to book-entry shares. Insert the number of shares. incidental. stock power. Please review the entire document before starting the step-by-step process. INC. completeness.).COM. signature on the back of the certificate. This is your opportunity to explain the steps that you’ve taken to find the missing certificates. you should not rely upon the materials provided in this packet without first consulting an attorney with respect to your specific situation. This requires that you go. AFFIDAVIT OF LOST STOCK CERTIFICATE AND INDEMNITY AGREEMENT & GUIDE © LEGALZOOM. You must notarize your signature on the affidavit. The materials in this packet are provided "As-Is.g. consequential. This may help in the event that those replacement certificates are lost or destroyed. etc. “book-entry securities” have grown in popularity. 2010 2 . 3. in person. 2. punitive or any other damages) arising out of the use or the inability to use the materials provided in this packet.. and the name and type of the company that issued the stocks. The use of the materials in this packet does not create or constitute an attorney-client relationship between the user of this form and LegalZoom. accuracy.g. If you obtain replacement certificates. Affidavit of Lost Stock Certificate and Indemnity Agreement Instructions The following instructions will help you understand the terms of your affidavit. The numbers below correspond to numbers in the form. 1. 4. explain the manner in which this endorsement occurred (e. Indicate whether or not the stock certificates had been endorsed before you lost them. timeliness. To the maximum extent provided by law. the type of stock the certificates represented (e. special. These are securities owned by a particular person or company but without corresponding physical stock certificates. DISCLAIMER LegalZoom is not a law firm. Be sure to bring a form of picture identification with you. to a notary public. A list of notaries can be found in the phone book.In recent years. LegalZoom. Because the law differs in each legal jurisdiction and may be interpreted or applied differently depending on your location or situation. make copies of those documents. its employees or any other person associated with LegalZoom. delete the first provision and explain the circumstances of that event. Be as specific as possible. merchantability or fitness for use or purpose. This simplifies paperwork for both broker and owner. If your certificates were destroyed. If they were endorsed. the date of issuance." without warranty or condition of any kind whatsoever. The information contained in the packet is general legal information and should not be construed as legal advice to be applied to any specific factual situation. it agents and officers shall not be liable for any damages whatsoever (including compensatory. indirect.


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