The simplest definition of a financial instrument is a group of assets or capital that can be traded. They are essentially legal contracts involving monetary value of any kind. The purpose of the financial instrument is to more easily allow capital to flow throughout world investors and markets.
The two main types of financial instruments are cash instruments and derivative instruments. Cash instruments’ values are directly determined by markets while derivative instruments’ values are based on a vehicle’s underlying components such as assets or interest rates. Financial instruments can further be divided by asset class, as some are backed by equity in an asset while others are backed by a loan made by an investor to the owner of an asset.
Some examples of financial instruments include stock certificates, checks, certificates of deposit, mortgages, life insurance policies, and other securities.
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But what if you’re the owner of a financial instrument and lose the document and try to request a duplicate? Many times, banks and other entities that issue these duplicate instruments require the owners of these lost documents to post lost instrument bonds. The lost instrument bond guarantees that the owner of the lost document will indemnify the bank or other entity for any loss it suffers because of the duplicate securities or other instrument it issued.
Where can you instantly purchase a lost instrument bond?
Colonial Surety offers the direct and digital way to obtain a lost instrument bond. We are the insurance company — which means no agent, no broker, and no middleman. We make it easy to obtain your bond instantly. The steps are simple — get a quote online, fill out your information, answer our underwriting questions, upload the necessary affidavit and underwriting documents, and enter your payment method. Print your bond from your home or office. It’s that simple!