Surety Bond for Money Orders

[hebennett]

I have had several Money Orders stolen. I have contact the banking institution, BofA, and they have instructed me to have a Surety Bond issued for the amount of the Money Orders. I have not been able to locate anyone who is familar with this type of bond. Is such a thing available, and if so, who can I contact to get it issued in order to protect me.

Thanks

[bondman]

I have had several Money Orders stolen. I have contact the banking institution, BofA, and they have instructed me to have a Surety Bond issued for the amount of the Money Orders. I have not been able to locate anyone who is familar with this type of bond. Is such a thing available, and if so, who can I contact to get it issued in order to protect me.

Thanks

If BofA instructed you to issue the Surety Bond then they should provide the text for the bond. My guess, and it is only a guess, is that what they are after is an indemnity from you before they will reissue the Money Orders. This will cover them in case the stolen ones are paid. It is not intended to protect you, but the bank. I am from the UK and we use indemnities similar to this to cover instances like missing Bills of Lading where shipping companies release goods when the Bills of Lading have been lost.

[BondLaw]

What you are looking for is commonly referred to as a "Lost Instrument Bond." They are primarily used to replace lost or destroyed negotiable instruments, such as deeds of trust and stock certificates. In this case, however, the bond may be difficult to get because stolen money orders present a high risk that someone will try to negotiate them. In any event, I recommend that you contact a local broker who specializes in surety bonds. Most bonding companies maintain a LIB form of one type or another and, as Bondman points out, the bank is likely to have its preferred form. In fact, I am certain that BofA has its own form and you should ask them for a copy.

Good luck.