Lost Stock Certificates
Under the Uniform Commercial Code (UCC) Article 8, a physical stock certificate is considered a “financial asset” similar to a car title. Thus, when shareholders lose their stock certificates, an indemnity bond will need to be utilized to cover the value of the security. Shareholders who have lost their stock certificates will need to replace them utilizing the process outlined in the sections below.
Lost Certificate Replacement Process
Replacing a lost stock certificate can be a complicated and expensive process; therefore, we recommend that shareholders search their records or contact their broker in a final attempt to track down the certificates before filing for a replacement.
Step 1: To initiate the replacement process, please send the Lost Securities Form Letter from the shareholder explaining the details and circumstances of the lost certificate. This letter must be returned to A&P Stock Transfer Co. via fax, mail or email. This initial step authorizes A&P Stock Transfer to place a stop on the certificate.
Please note: Shareholders that authorize A&P Stock Transfer to begin the replacement process and subsequently find their lost certificate before fully replacing the certificate will be subject to a recovery-filing fee to reactivate the stock.
Step 2: Upon receiving the Lost Securities Form Letter, A&P will send instructions with two lost securities insurance bond affidavits to the shareholder. Both of these affidavits and any other forms will need to be signed, notarized, and returned to our office with the appropriate fees paid by cashier’s check or wire before we can issue a replacement stock certificate. If you are transferring shares to another party, please refer to our Stock Transfer Guide for more information.
Please consider the market value and liquidity of your stock before beginning the process to replace your certificate. The fees associated with replacing a lost certificate include an open-ended surety bond, based on a percentage of the market value of the stock.
Mail Loss
If your certificate(s) were lost by the postal service you may be eligible to file a mail loss bond to replace them. Please call A&P Stock Transfer to find if you are eligible. As always, we strongly recommend that stock certificates be sent and returned via courier service (Federal Express, Airborne Express, United Parcel Service, certified mail, etc).
Finding a Lost Certificate
Shareholders that authorize A&P Stock Transfer to begin the replacement process of a lost certificate and subsequently find their certificate will be subject to a recovery-filing fee to reactivate the stock. In order to recover a lost certificate with A&P Stock Transfer, shareholders will need to send the applicable fees and a signed letter stating that the certificate was found. We recommend using the official Stop Release Letter that can be downloaded from this site. Once this letter is received, A&P will reactivate the certificate and remove the stop previously placed.
